How to Sell Silver & Maximize Your Payout in 2022

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by Erin Schollaert

Updated

Selling silver may sound like something you’d have to own a mine to do: but once you learn how to sell silver, you’ll be amazed at how simple it is.

From how easy it is to source silver to the ins and outs of selling it, this precious metal will always have value.

This is everything you need to know about how to sell silver coins, bars, and other items: and why it’s so valuable.

Is it profitable to sell silver?

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The main question people have about silver is if it’s even profitable to sell.

This is a precious metal that can cost a seemingly large amount of money to source and is popular all over the world, so how could anyone besides mine-owners be making money off of this?

Fortunately, it’s very possible to start making money off of silver as long as you understand what you’re doing and invest wisely.

Make sure to watch the market and pay attention to dips in the value of silver.

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Never pay what the current value of this precious metal is, and make sure that you always mark up the price when you sell. When done right, it can be one of the best items to resell.

These are basic business tools that can be used in any market, selling any product or service: so what’s the catch?

Silver requires a very large investment before you can start making any actual money off of it.

Before you start asking yourself questions like ‘where can I sell silver?’ consider if you can afford to lose the amount of money you’ll have to invest to make money off of this.

If your answer is no, try checking out one of these recycling businesses with huge profit potential instead.

Trend on the Rise

The general goal for resellers is to buy silver at least 30% beneath its intrinsic value: and then resell at or above the value. Following this trend will ensure you never lose money on a deal.

How to Recognize What’s Silver

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Silver is an extremely unique metal. It’s very soft, so it can be shaped into beautiful forms, stamped to show its quality, and shined to look beautiful.

Silver is extremely nonmagnetic, meaning that its magnetic capabilities are so low that no matter the magnet you use, you’re not going to attract something with pure silver.

All precious metals, like gold and platinum as well, are diamagnetic in nature – which is very simple to test for.

These tests can be performed at home as a first step before selling silver flatware for cash or testing necklaces for selling at flea markets.

Fortunately, there are other tests you can carry out to ensure that your metal is of the best quality and is real silver.

All genuine sterling silver will have a stamp of 925 on it. This means it contains 92.5% silver since it’s an alloy.

Other stamps you’ll find on older pieces of silver may be 900 or 900, so it’s vital that if you see these, you test them further.

Silver oxidizes over time, which leaves a gray-black residue behind when you wipe it with a clean cloth.

If you’re still unsure about your silver, consider this test as a way to make absolutely sure you have real silver.

Signs Something Isn’t Silver

  • No Stamp Most silver that’s been turned into coins, bars, or jewelry will be stamped to show its legitimacy.
  • Magnetic – Silver isn’t magnetic. If your piece is attracted to magnets, it might simply be silver on top of a different type of metal.
  • No Oxidation – Silver oxidizes over time. If you rub your piece with a cloth and it comes off clean, it might not be silver.
  • It Turns Skin Green – Any jewelry or pieces that turn your skin green are not pure silver.

Tactic for Success

Don’t buy silver from any dealers you don’t recognize or can’t trust. Every purchase you make is an investment in yourself and your business. Research every dealer before making any purchase.

What Silver is Worth Most

The forms of silver worth the most are coins and bars. These are the two easiest forms to quantify and sell, especially if they’re in with a large number of similar items.

Although jewelry is nice, it has such a small amount of silver that when you combine all of it by weight, including the stones that come with it, it’s a large amount of time and energy wasted that a simple bar or coin could handle.

Beyond this, if you start dealing with jewelry, you’ll have to become accustomed to how to tell if a stone is real, how high quality it is, and what its value of it is.

This knowledge can be incredibly useful when selling to pawn shops.

Although precious stones are valuable, they’re far easier to fake than silver and more likely to drop in value significantly.

Cut the mess, and work directly with silver.

Trend on the Rise

Silver is continually boosting in value year after year. In 2021, silver saw a 74% rise from 2020- going from $15.50 an ounce up to $27 an ounce. This is a huge jump and best made when buying silver coins.

Is silver worth buying to sell?

Some don’t like the idea of buying silver since there’s a chance you could end up grabbing it from a less than reputable dealer.

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This is a perfectly healthy thing to worry about since a poor deal could cost you a lot of money.

When you’re starting out and you don’t have any connections or footing in the market, it’s a good idea to meet with your dealers in person.

This will allow you to handle the silver, check it for yourself, and ensure it’s real.

Meeting in person will also give you the opportunity to form a connection so that they can help offer you future deals or help you connect with other sellers.

Being honest, keeping communication healthy and natural, and paying attention to any tips they give you, can help you grow your company faster than if you tried to risk money on one of the many sites online that claim to sell silver but don’t.

Where To Sell My Silver

Selling silver is the most exciting part of this business! You get to decide on your mark-up, pick the market where you’re selling it, and decide what will set your business apart.

Whether you specialize in antique coins or you like to keep full bars of silver to wow buyers, it’s a good idea to make sure you have a healthy inventory before you start selling.

If you start selling online first, make sure you get your silver authenticated when you’re newer, including paperwork on where it was sourced and how it was tested.

Take images of every single piece that you sell before you ship it off so that if buyers try to scam you, there’s evidence.

Silver is a high-value metal, so you have to play with the rules to protect your interests without possibly getting taken advantage of.

Where to Sell Silver

  • Coin ShowCoin and precious metal shows are a great place to sell! This works best if you have a booth or table at them.
  • Online – Selling online allows you to reach more customers and sell items faster for more money.
  • Auctions – Your income limit is bidders’ wallets! Auctions are an awesome place to sell precious metals.
  • Private Buyers – If you gain enough popularity, some buyers will stick with you and want to buy from only you- these are high value.

Where Not to Sell Your Silver

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Now that you’re ready to sell: it’s vital that you get to know the dangers of selling to the wrong buyers.

These are others who are trying to make money off of silver and will quickly underpay you for large amounts, leaving you broke.

Quick-Sell Silver Schemes

Many companies will advertise themselves as fast buyers of silver: but they’re no better than a pawn shop.

Don’t fall for their schemes; they will underpay you and are simply trying to gain the most silver possible for the least money.

Smelting Companies

Smelting companies are only worth selling to if you have a ton of scraps and nothing to do with them. Never sell bars or coins to smelting companies.

Pawnshops

Pawnshops are possibly the worst place to purchase silver from.

Not only will you quickly find that they want to underpay you by 50% or more, but they will often try to say what you’re selling is illegitimate even if it’s real.

Tactic for Success

When selling your silver, get to know the value of it before you consider selling: and never dip below that. People invest in silver because they expect it to grow in the future. Unless you have to make a lot of money quickly, don’t undersell what you have.

Wrapping Up

If you’re eager to make some money selling silver, you’re not alone!

There’s a lot of value to be found in this precious metal: just make sure you know what you’re doing and who you’re buying from.

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About the Author

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Erin is a business teacher and mother of three. When she’s not in the classroom or fulfilling her obligations as an A+ hockey and lacrosse mom, she’s working on her latest article.