Who should I sell to?

Once silver goes up to the point I like it at, who can I sell it to? I know coin dealers buy silver, but when I went to one just to ask him how much he would buy 1 oz of silver he offered $5 under melt... I don't want to sell it on Craigslist or eBay because I want to sell it to someone in bulk and all at once. So who should I sell to? Thanks!

 

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$5 under melt is not unreasonable. Offer him $2 or $3 under melt and that would be fair IMO.

 

No worries, it's most likely not going to go up much and for a very long time. By the time it does have another $40 - $50/oz. hiccup, in 20 - 30 years, you'll have forgotten all the answers under this thread and buy/sell locations will have new addresses. Hope you didn't buy high.

 

It is a fair question OP, one that has no good answer. This is the aspect of pm investing everyone conveniently does not talk about; the extremely high transaction cost. When you buy the dealers want a large, (versus any other investment), premium, and a large fee when selling. In your example, if someone has to pay a $3 premium when buying and $3 deduct when selling, that is a total of $6 in a $20 some market. That is 30% transaction cost! This compares versus $.06 an ounce cost if you buy SLV.

Against such a huge buy/sell spread, its simply extremely hard to even break even.

 

Do you think 4, 1 oz coins for $113 (including shipping) is a good deal?

 

Medoraman makes a good point, in this market especially with silver really stagnant for the most part you're going to be lucky to break even. There's always debates brewing over PM as an investment which I won't sidetrack to here. It's a good

However, in answer to the actual question, you're most likely better off within communities like these, as you are more likely to find buyers willing to buy for spot or even a little higher as opposed to a dealer. eBay is a decent option since most silver tends to sell for about spot + eBay fees so you won't lose too much there either.

 

For who and what purpose? Spot is about $86, shipping on that should bring it to just over $90 (depending on who's shipping it), so that's about a 20% premium. Some places are selling generic rounds for less than a dollar over spot, which is right now about 5% premium.

If you're stacking for the long term and using it as wealth preservation, what you buy it for today will probably not matter as much 10, 15, 20 years from now, so it's up to you if that fits in your budget.

If you're looking to flip it, you're going to have to wait until silver has gone back above the $30 point before you can pretty much just break even. Given how the market has been lately, that could be quite a while.

Define your purpose for getting the silver, then the answer should become clearer. If you're looking to speculate on the metal , look at SLV instead. If you really just want shiny metal to have and to hold until death do you part, then it's not a horrible deal (but not perfect either).

 

I am getting silver to save up for retirement and just to preserve wealth. I want to preserve that wealth in beautiful coins like the 2014 Chinese panda and the 2013/2014 kookaburra.

 

Then if it's in your budget, its up to you if you want to spend more time searching for a better deal by a few dollars, or if your time is worth that few bucks. Again, that long into the future it's really not going to matter the difference of a few bucks now. By then it will be "found money" to you, meaning that you'll have forgotten the money you spent on it, it's long disappeared from your bank account and you'll get some cash in hand you didn't have before.

You didn't specify if the silver was "generic" (and I include ASE's, Maple Leafs, etc) in that, or if it was any of the mint bullion series like the Kook or Panda. Those for that price probably are worth the premium as you'll probably still be able to recoup that premium on resale, whereas for the generics you're not.

 

I want to buy 4, 1 oz coins on provident metals, they are; 2014 kook, 2013 kook, 2014 panda, and a 2014 candian falcon.

Will there be a high premium for those coins in the future?

 

maybe

 

Silver and wealth do not really equate. That is a term more reserved for gold. I believe silver and gold bugs have their own theories on that and I've seen this quote tossed around in their circles...

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

I have my own opinion on commodities being just that, commodities.

If anything, doesn't history show us that silver is a great tool for stripping the lower and middle classes of any riches, especially when they buy on hype and sell out of despair?

 

I think silver bullion is a fad, like beanie babies.

 

Now I'm confused. Is it retirement time? Are you buying or selling? You can sell it to those interested in buying, at the time of your retirement. No reason to worry about it now.

 

I agree that gold is better for flipping... The thing is, I don't have $1,400 for 1 oz of gold and 1 gram for $52 is just ridiculous, that is $10 over melt.

it isn't retirement time yet, I was just wondering. Since it is pointless to think about it now, I guess I won't.

 

Unknown. Many things that had a high premium, like barber coins, have no premium when silver is $20. Will these coins carry a premium? No one can know.

The major point, though, is you need to understand WHY you are buying. To me it sounds more like you wish to be a coin collector, not a bullion stacker. Nothing wrong with that, but the very serious danger is paying higher and higher premiums but telling yourself youare "saving" when in fact its money you are spending for your hobby. Many, many people fall into this trap, you are not alone. If you are very serious, though, that you wish to buy silver ONLY for an investment, your best course of action is the most ounces of silver per dollar, regardless of how pretty it is.

 

The locations that bought and sold precious metals in the 70's and 80's fiasco, are not the same locations that are and were buying and selling precious metals in the 2000's and 2010's fiasco. Locations and transaction mediums will probably change by the time you will be retiring. Here's to hoping, that in the future the internet is still around and that you're not looking for a buyer with Mad Max at your side.

 

Well, if silver is worth money, which is a current measure of wealth, I don't understand how it doesn't equate. If I held 1 million ounces of silver today, which is worth roughly 21 million dollars, I don't understand how I wouldn't be considered wealthy. Now, how or where I'd store that much silver if I had it I have no idea, but this is all theoretical anyways.

If silver tomorrow is deemed worth nothing, then those who hold it have indeed lost their previous wealth, and then I'd agree with your statement. However, the current situation, and one likely to continue for a while given how everyone has been trained to think it's worth good money, says that those who have a lot of it could indeed be considered wealthy.

I like the quote, and I can understand what it's meaning is, especially given back to times when wealth was measured in physical things - i.e. livestock, land, and precious items (metal, jewels, fish bones, etc) - instead of paper money. Those things deemed more valuable by the population at the time, if you held more of them you were quite wealthy, and given how gold was treated as vastly superior to silver and copper if you held gold you were like kings.

 

if your buying at 20 its good

 

You can claim to be rich holding tons of silver, but not wealthy. Please factor in storage costs that undermine and erode your physical investment.

For an accurate explanation, I recommend 4 minutes on YouTube, search Chris Rock - Wealthy And Rich. (no link here, language warning, search at your own risk)