Where can I sell my silver when it’s time to off-load?

Posted by in Silver Bullion Blog on January 21, 2016 Comments off

Where can I sell my silver when it’s time to off-load?

This question is perhaps the most important question that a silver investor should ask. After all, one only becomes a successful silver bullion investor once the silver is re-sold for a profit. So, what options are there for South African silver investors?

Essentially, there are a number of options available when the time arrives to offloading ones silver bullion, assuming that the silver being sold is not some no-name-brand product cast from silverware and recycled jewellery in a back-yard, but recognised and trusted forms of bullion (i.e. American Silver Eagles, Canadian Silver Maples, and so on).

So, the first option is to skip the middle-man and sell it privately on platforms like Bid or Buy. This online platform would undoubtedly be the safest and most ideal way to offload both small and large silver positions. The only drawback is that it may take a few weeks and perhaps even a few months to do so, depending on the number of coins, rounds, or bars being sold. I do not think that this is a serious challenge, since many other types of investments may take a few days to a few months to liquidate. Think of property as an example. On the Bid or Buy platform, one has the option to sell via an auction, or simply list the silver at a set price. Since profiles of both buyers and sellers are pre-approved and require an ID and various security checks, it is a very safe option.

The second possibility is to sell the silver to private refiners. The only downside is that these companies usual tend to pay close to (sometimes even below) the spot price of silver, which is usually as much as 30% below the market related price of a typical ounce of silver. Choosing this avenue to offload silver would mean liquidating ones silver position in a matter of a few days. But sadly, it would also mean less money.

The third option is to purchase silver from a reputable dealer who is willing to buy back the silver that was originally sold to you, or, at the very least, make you a market related offer. At Silver-Sphere Trading, although there are some ‘terms and conditions’, we would typically buy back only the silver that was bought from us formerly (proof of purchase required). The price difference between buying and selling (provided that the exchange rate and silver spot price remain unchanged) is between 7% and 12% lower than the bulk pricing on our website on that specific product. After all, it makes more sense to purchase back the silver from my clients when they are ready to re-sell, rather than importing the same product and take on all the risks associated with importing high value cargo (not to mention the delay of up to three weeks). For more information, please take a look at our ‘trading buy-back policy’ page.

So, my opinion as a silver bullion importer and dealer is this: offloading silver is not difficult given that the market participation in South Africa is increasing exponentially yearly. The only decision is, how much you are willing to accept for the silver. Sell it privately over a few weeks or months for a market related price on a trading platform like Bid or Buy, or sell it speedily to private refiners for the spot price? In my personal opinion, the best of both words would be to re-sell back to the dealers from which it was purchased. It is the most hassle-free way of trading silver bullion.