Options
Selling silver
cinque1543
Posts: 208 ✭✭✭
A friend of mine inherited 200 pounds of silver from his father, mostly in bars ranging from 1oz to 10oz in size. He wants to sell it all, and called a local dealer for an estimate. The dealer is offering 90% of spot. Does that sound like a reasonable offer?
0
Comments
Depends on what the bars are.... and whether your friend wants to take care of it as a 'one and done' transaction. Could he get melt or better? Sure, if he wants to do the work of selling on ebay, much more time and effort, etc.
Like tincup said, depends on the bars. Some older poured bars can command big premiums over spot.
Sounds too low but an opening offer. Negotiate up to at least 94% but as others noted, if older 'named' bars cull them out and only sell the generic ones below spot.
Have him take a couple of sharp pictures of the bars (anything above an oz.) and post them here. We can tell you which ones he should keep out to sell separately from the main group.
mbogoman
https://pcgs.com/setregistry/collectors-showcase/classic-issues-colonials-through-1964/zambezi-collection-trade-dollars/7345Asesabi Lutho
That's too low for that kind of volume. I'd hold the line at 95%.
Dave
make sure your friend understands "stepped up basis" when he claims the income on his taxes. When calculating cost (basis) of an inherited item the cost is its market value at the time of inheritance not at the time it was purchased. This will save your friend a lot in income taxes (less on paper profit) on an appreciated item if of course he claims the income on his taxes or his buyer submits a 1099 on the purchase which will require him to report the income.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Thank you for your comments. I’ve passed them on to my friend.
The comments in this thread are 100% good solid advice. Silver has been taking a real hit lately, and retail demand isn't that great right now, so bids will likely be less than spot. This too, will change.
I knew it would happen.