Selling Silver and Gold - what is the best options?

A local jeweler has been advertising on TV and recently opened several small stores around town to buy silver and gold.

I meet some buddies for some Senior Coffee at McDonalds, and on the way out I noticed one of the new stores that this jeweler opened, so i walked in.

The women inside said that she pays 80% of spot for silver, even for 10oz bars of .999 fine. This surprised me since I have noticed on both KITCO and Provident web sites that they are offering spot. The USPS small flat rate box can cost as little as $4.75 with delivery receipt so it appears that shipping is a minor added expense.

I haven't had a chance to ask my local coin dealer what he pays to buy silver, but I recall asking him a while ago and I remember feeling that the discount taken was pretty steep. The local dealer is very reasonable on selling premiums, especially if I pay with cash.

I looked at eBay and noticed that people pay a premium to buy gold and silver but when I deduct the 12% eBay/ PayPal fees it appears that the online dealers offer a simpler and better price.

What is the minimum amount that the online dealers require in order to buy PM? If it's a dollar minimum, can you combine several items, gold and silver to meet the minimums?

I don't have any immediate plans to sell anything, but it's always good to have some sort of exit strategy, just in case the need does arrive. :thumb:

Thanks

 

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I sell mostly to my local coin dealer who pays usually spot or close to it. I wouldn't sell for 20% under like you were quoted. And sometimes Ebay is a better bet. Dealers will usually pay close to spot for anything, unless it's a key or semi key date. On Ebay you can sell a nice common date for 80-100% over spot, even with the fees added.

My recommendation would be to find a coin dealer in your area that pays a fair price, which to me is no less than 5% under spot.
Guy

 

The best dealer in my area buys for about 5% under spot, many of the other dealers actually bring their buys to him. Maybe he gives them a better deal. The best I have gotten was 5% over spot for englehard bars at the ana show

 

I had a chance to stop in my local coin shop today. Here is what they said:

Buy Item Sell
-$.50 Silver Bar +$1.50
Spot GAE +8%
+$1.00 SAE +$5.00

Seems pretty fair. Guess my LCS is the best place to sell when that time comes.

 

My dealer told me he buys for 5% under spot and sells for 5% over spot. I've seen him purchase from people and that seems to be his system.

 

Unfortunately there's going to he a lot of people hooked into that -20 % under spot offer. More shops and overhead = less for your money. They have to make a profit somewhere.