If you have silver items, such as silver jewelry or cutlery, that you would like to sell to obtain some much-needed cash, then you should learn more about the silver buying and selling process before you sell your silver. Many new silver sellers are surprised to learn that their silver items are more or less valuable than expected when they do not understand how the value of silver is determined or just how much pure silver the average silver item contains.
Read on to learn three facts you should know before selling silver to ensure you and the silver buyer are satisfied after your first silver trade.
1. Spot Price Is Rarely Offered by Silver Buyers
Many new silver sellers calculate how much money they think they will be offered for their silver items by multiplying the weight of these items in troy ounces by the current silver spot price. While silver spot price is the current purchase or sale price for immediate, or on the spot, delivery of silver, most silver bullion dealers will only offer a silver seller about 95 percent of spot price or less.
Since these sellers run businesses that have many overhead costs, many would not earn a steady profit if they gave all silver sellers the full spot price.
2. Sterling Silver Is Not Solid Silver
Some silver sellers expect more for their sterling silver valuables than they are truly worth because they think that sterling silver is made of 100 percent pure silver. However, the truth is that sterling silver is only 92.5 percent silver, so the value of a sterling silver item is determined by multiplying its weight in troy ounces by 92.5 percent and then multiplying this number by the current spot silver price.
Other silver items, such as silver coins, are also not typically 100 percent silver and are instead a mix of silver and other metals, so always keep this fact in mind when estimating how much a silver buyer may offer you when selling these items.
3. Some Silver Types Are More Valuable Than Others
While the pure silver content of an item plays a role in just how valuable a silver item is, some silver types are simply more valuable than others, regardless of their pure silver content.
For example, Argentium silver, which is a type of silver that contains 92.5 percent pure silver is typically considered more valuable than sterling silver because this silver type is rarer than sterling silver and is produced in a way that limits tarnishing.
If you are new to selling silver, then keep these three facts in mind as you prepare to make your first silver transaction.
