A really good question on selling silver

ScarsdaleCoin

So I found this interesting. Average pawn type shop is only paying 80% melt on silver. Which leads me to what would you expect to get if you were selling? We pay roughly 94-97% depending on what it is. With that said you do have to assume dealers have to make money so what do you think is actually fair?

coastaljerseyguy

Depending on volatility, fair would be 7-10% back. Obviously with high spikes they may go lower to maybe 10% back on the 30 day average price, which at current price looks like sellers are being had. I would never sell to a pawn shop or those "We buy Gold" stores. But I live in a metropolitan area so don't need to.

P0CKETCHANGE

I check buy prices on Kitco to get a reference point. Right now, product like ASEs and silver Maples are 97% of spot. I’m fine with a little less from LCS, because I don’t have to deal with shipping and get cash immediately.

vplite99

Some dealers advertise nationally; they tend to offer the most competitive prices.

mirabela

Good question -- I recently sold a few batches of US 90% for about 96% of melt on the BST, netting 94% after shipping. My local closed around a dozen years ago, but if there were a B&M shop near me buying at close to that level I'd probably have gone to them for the convenience and to help a local business unless there were something really objectionable about them. I wouldn't sell for a whole lot less since I know how to get what I got for it here, but lots of people don't.

Really, I guess a fair buy price depends on what your options for selling it are. If you have buying clients who'll pay melt on enough volume to make a 5% profit worth it, sure, 95% is great I guess, but I can't fault anybody for paying less if they're having to package it up to ship to someplace that's only going to pay them 97%.

Paying 80% seems unreasonably low to me.

Dave99B

You really need call around, and see who wants it the most. Prices are all over the board.

Last week I sold $700 face value of 90%. I wanted to sell it all at once, vs piece mealing it on the BST. I shopped around at my local B&Ms, and found WIDELY different prices. I ending up selling it to an online bullion dealer (Hero Bullion). It cost me $200 to ship it, but I pocketed about a grand more vs selling it locally.

Dave

jdimmick

I buy generic rounds at spot -1.50 , 90% currently at 20x, if somebody wants more , I tell them to check elswhere, I am buying 90% at 20x from several dealers in the surrounding area, so they have to be lower over the counter if they can sell to me at 20x. Generic rounds sell ok, eagles are still best seller, nobody and I mean no body is buying 90% locally otc.

logger7

I had a local guy ask on the sterling silverware he was looking to sell, one coin shop quoted $21/oz on silverware. One major local dealer doesn't want to be buying gold bullion with $45/oz profits so sends his business elsewhere. A shop yesterday was buying 90% at $21/oz which is quite fair in this high rent area. Ultimately people have to ship if they want top dollar.

jmlanzaf

@logger7 said:
I had a local guy ask on the sterling silverware he was looking to sell, one coin shop quoted $21/oz on silverware. One major local dealer doesn't want to be buying gold bullion with $45/oz profits so sends his business elsewhere. A shop yesterday was buying 90% at $21/oz which is quite fair in this high rent area. Ultimately people have to ship if they want top dollar.

90% at $21/oz or 21x face?

logger7

Here's an online buyer: https://coingallery.com/NP/WeBuySterlingSilver.asp

So paying $21 per ounce for sterling ware may be a little cheap, the alternative of course if a shop doesn't want to deal with it is to say they are not buying.

DocBenjamin

Offered gold and plat to my local B&M. Owner was not available so I showed it to the schlub at the counter. Offer was 20% back of melt.

Walkerguy21D

It sounds like if us small guys want to sell silver for >$30/oz, the spot price needs to be close to $40….

Swampboy

80% seems fair
After all, the shop has to pay the shipping and the smelter
😂

jmlanzaf

@Walkerguy21D said:
It sounds like if us small guys want to sell silver for >$30/oz, the spot price needs to be close to $40….

Depends on where you are. Most shops in Rochester are paying $1 or $1.50 back on .999

Walkerguy21D

@jmlanzaf said:

@Walkerguy21D said:
It sounds like if us small guys want to sell silver for >$30/oz, the spot price needs to be close to $40….

Depends on where you are. Most shops in Rochester are paying $1 or $1.50 back on .999

Thanks, good to know, as that’s pretty reasonable.

Bochiman

If trying to sell to a dealer, or someone reselling it right away, then, to me, "fair buy price" depends on what they are also selling for. If they are trying to buy at 80%, or even 90%, but are selling at 110%, or more, then I would go elsewhere.

Few years back, sold some gold for ~spot and dealer was selling for spot +2-4% (depending on what type of gold). Other dealer was trying to pay me 90% and was selling same gold items for spot+6%. This was on 1oz AGE

Cougar1978

A local dealer with lots money swanky shop pays about 80 pct BV on junk silver. Then may flip it on the bay for more or just markup 10 pct over BV in his junk bins at his shop. Does a huge business on that stuff both buying and selling.

Typekat

Small town LCS will pay less, since they usually have no competition, and don’t do much volume.

If you have a sizeable amount to sell, it’ll be worth your while to travel or ship to a big city dealer.

For instance, the above-cited Coin Gallery has lots of competition in Phoenix/Scottsdale and has to ‘pay up’ to stay in business.

coinkat

I think it depends largely on your clientele and whether you want to dedicate the resources to make that happen.