buying/selling silver bullion - help me understand

[04SE]

Long story short I inherited a small amount of silver bullion, 50 or so ounces. Knowing absolutely nothing about precious metals beyond the obvious I stuffed it in my lock box and figured I would worry about it later. Well a number of years have passed and it is now later. I have been reading and trying to understand the spot price and how it affects what my stash is worth. To say I am confused is understatement. Here is what I have learned so far: 1. Spot price is some made up number controlled by futures contracts 2. Your gold/silver is only worth what someone is willing to pay for it or accept in trade 3. Dealers pay below spot price for their inventory and charge way over spot price at retail 4. Dealers won't pay you spot price to buy your gold/silver Seems to me that simply owning precious metals seems to be a waste unless you expect the zombie apocalypse or armageddon in which case food, water and firearms would be more valuable. Do I take what the local place will give me for it and say thanks? Or do I leave it sitting in the lock-box for my children to deal with when I am pushing up daisies? I don't need whatever $$$ it would be worth and judging by the paperwork I have with it it is actually worth around the same as when it was purchased and some of it is almost 50 years old. It isn't as though I am finally cashing in some big profit, it seems it would be breaking even at best when you consider I would be getting less than spot for it.

 

[65f100]

You can get spot for your silver from private parties easily. There are swap pages dedicated solely to this. You can also sell it on Craigslist.

 

[Linctex]

I have bought & sold silver on eBay, Craiglist, and through various forum members. I have never went through a PM dealer to sell, but have bought new through ApMex (who also buys).

 

[eljefino]

Originally Posted By: 65f100

You can get spot for your silver from private parties easily. There are swap pages dedicated solely to this. You can also sell it on Craigslist.

This. But be careful, this might be the thing to do in the police station lobby for cash. Bring the supporting paperwork with the sale.

 

[ecotourist]

Originally Posted By: eljefino

Originally Posted By: 65f100

You can get spot for your silver from private parties easily. There are swap pages dedicated solely to this. You can also sell it on Craigslist.

This. But be careful, this might be the thing to do in the police station lobby for cash. Bring the supporting paperwork with the sale.

Yes, do be careful, especially when buying. A recent news report in Canada was that a jeweler or craftsman bought a small amount of gold in a sealed but see-through package from one of the major banks. When they opened the package and tried to work the "gold" it wouldn't work. Turns out there was absolutely no gold in that small gold-coloured bar. If they had bought it as an investment, it may have been years or possibly decades before the problem came to light. And at that point how would you prove who did what? At last count the bank was trying to figure out how it ended up selling fake gold.

 

[Chris142]

Guy I have delt with buys it from you for 6% under currant price. I dunno about selling it since I never bought any.

 

[sleddriver]

Recently went through this. Seller Beware!! You need to crunch your OWN NUMBERS acurately to (1) protect yourself from getting ripped off (2) see number 1. I visited seven different shops, had them write down their numbers, then sign. The cuts some wanted were outrageous. I knew this because I'd done the math.....beforehand. You have to prove to them you're not a sucker or an idiot. Having your own numbers goes a long way. Lastly, I seriously doubt 50yr old silver bullion has not greatly appreciated. Mine certainly had.

 

[SHOZ]

Here's the website I use for metal discussion. They have a great forum and even allow political discussions. Kitco Forum