How to sell silver coins

Silver coins are popular investments among coin collectors and speculators. Investors buy them to hedge against inflation.

When prices rise, people seek to sell their collections of silver coins, but most are ill-prepared to sell.

Knowing how and where to sell coins and how to maximize return requires several considerations.

   
When to Sell

To reap the rewards of investing in silver, collectors and investors need information on when to unload their silver coins. Essentially, the best time to sell is when prices are high. Prices for silver coins depend on the scarcity of a particular coin, its condition and the current trading price for silver.

In the early years of the 21st century, prices rose due to increased industrial demand for silver. Because silver has unique properties, it is used for a variety of industrial purposes. Supply also plays a role in the value of silver.

In 2008, the world's supply of above-ground, refined silver totalled just 300 million ounces. According to an August 2009 article in "The Motley Fool," an investing publication, mining output is on the rise.

In 2008, a troy ounce of silver brought £8.59 ($14), the second-highest value since trading began in the mid-1800s. In August 2009, a troy ounce sold for approximately £7.97 ($13), which was still 100 percent better than the 2001 price.

Selling to Coin Dealers

The obvious first concerns when selling coins is to know the value of a coin before you decide how to sell it. For some coins, market value might be fine. For others, though, you might miss a great opportunity to receive a premium for the coin. For example, American Coin, a company that buys and sells coins as collectibles, values some silver dollars at $5, which might be more than they are worth in terms of their silver content.

Bookstores and websites offer pricing information for many silver coins, but coin dealers also help value coins that come into their shops from prospective sellers. Make sure the coin dealer is a member of the American Numismatic Association, which requires that they subscribe to a code of ethics. That ensures you'll receive a fair quote. If dealers do not want them, there's a chance they will know someone else who might. Don't be afraid to ask about other places to sell your coins.

Selling to Scrap Dealers

Selling coins to scrap dealers offers several advantages. Foremost, dealers pay market value for silver coins. Market value is known as melt value, which is the value that the current market pays for silver. With a predetermined price, sellers know in advance what they will receive.

One dealer, the American Precious Metals Exchange, buys coins through its website. According to the APMEX website, the company only buys in bulk. A seller must offer a minimum of $1,000 in silver coins. Those who sell to APMEX must call the company to receive a quote price for the coins. That price stays locked in for five days. After receiving the quote, sellers have those five days to ship the coins to APMEX. After the company receives the coins, it issues payment in the form of a check sent via mail.

A drawback to selling silver coins to scrap dealers is that many charge a transaction fee and require that you pay for any shipping costs. The American Precious Metals Exchange does not charge a fee for a transaction, but the company says it charges $25 for anyone wishing to receive payment via a bank wire.

Another drawback to selling coins to scrap dealers is that they do not consider the scarcity of the coins. In fact, many do not research a coin's demand among collectors until after they purchase the coins. Therefore, a rare coin might sell for far less than what an active collector might pay.

Auction Selling

The easiest way to sell coins to collectors is through an auction. Live auctions, as well as Internet auctions such as eBay, attract several prospective buyers, and the competitive bidding process drives up the selling price for a coin. Collectors also pay more than face value for coins deemed in high demand. Factors they consider include the condition of the coin and collector demand.

The primary drawback to auction selling is that price varies. While a seller might receive a premium for his silver coins, minimal competition also might cause coins to sell for less than market value. To avoid such concerns, ensure that the starting bid is at least equal to the actual market value of silver.

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Starting to collect Silver Coins

From Gold and Silver Hallmarks

There are a few different ways in which you can build a coin collection.

You can pick up a few pieces which are worthwhile to you that could be valued in the hundreds to those in the thousands.

While it is possible to buy coins which are valued in the few pounds catagory, it is possible also to purchase such coins as the 1804 silver dollar draped bust which was last sold at auction for over £6 million. The choice is yours but you will have to shop in the right places to get the coins that you want the most.

"Getting the coins that you want will depend less on the amount that you are willing to spend and more on the amount that you are willing to search for the coins that you want". 

The more you are willing to look for the coins that you want, the better your chances are that you will be able to find them at the prices that you are looking for. You can also get in good with the local coin shop. Another great way to get the pieces you are looking for is to get in touch with the other private collectors that you know.

Online Auction Sites
There are few online coin auction sites which will allow you to get the silver coins that you need in order to get the collection that you want. These sites are sites which are sponsored by such organizations as the British Numismatic Association (BNA) look for members on the site which are in good standing with the BNA as well as with the rest of the people who buy and sell on the site. This means you will have a good chance of getting the coins you want even though you did not get to see them in person.

Local Coin Shops
Shopping regularly at the local coin shops is a great way that you will be able to get the coins that you are looking for at a price you can afford. While you will most likely pay a little bit more for the silver coins you are looking for, you will be able to get the coins as soon as they come on the market. This is because store owners are in the business of making money. If they get a piece they know you will buy, they will call you to tell you about it.

Private Collectors
The most difficult source to buy from is a private collector. This is because they know what they have and they want to make some money when they sell the coin also. They will have a set price that they will not go beneath. This means you will likely pay more for the silver coins you want, but you will at least know where to find them.

Kindle ebook 'A Beginners Guide To Coin Collecting' everything You Need To Know' £0.70 See More