Apr 2012


Apr 2012

Sell Silver

By StoneX Bullion

Why Sell Silver

The main reason to sell silver, which is also valid for anything on this planet, is to be profitable. When the price of a precious metal increases considerably, like it was the case with silver in 2011 when it almost reached a historic maximum, it is a natural desire to sell the owned silver.

Before having the possibility to sell silver you must firstly invest into silver, which has become an intense occupation across the globe, because silver has had a positive evolution in the last years and it is no sign that it will stop at the reached level.

Do not forget that when you invest or sell silver, we are talking about a volatile market with prices that can bring some surprises; that is why anyone interested to sell silver should first be interested in its evolution. These rapid changes have many explanations: a large trader transacts on the market a substantial amount of silver, a geopolitical event can cause a rapid change in price, and another factor is the new economic data.

Sell Silver in Bullion Form

To sell silver refers to selling bars or having coins for sale. These are the physical forms in which silver can be bought and sold, which are also known by investors as bullion silver.

For some investors it is easier to invest into the physical form of a commodity because they can evaluate it easier. When it is found in its bullion form and a respective person wants to sell silver all he has to do is say: I have this quantity of silver in grams or troy ounces and the price for silver is so many US dollars, and from there it is only about a mathematical operation. He can easily approximate how much he will get for his silver.

When it comes to coins for sale, you should remember that there are commemorative coins and bullion coins. The first category is addressed to collectors therefore when you want to sell silver in the form of such a coin, remember that you should not take it to a dealer; you should look for an interested collector because you will get an increased amount of money.

Commemorative coins are valued taking into consideration rarity, age, and condition. Bullion coins, as well as bars, are priced in accordance with the silver spot price to which it is added a premium, therefore do not sell silver before checking this price. The premium is in general smaller for silver bars.

Sell Silver in Non-Physical Form

The other alternative is to sell silver in its nonphysical form. These means that an individual is the owner of silver mining stocks, or maybe futures or options, or maybe even ETFs, and he decides to sell them. The main reason for doing this is that the price for this investment tools has increased, which in fact translates in an increase in the silver spot price.

Another reason to sell silver as futures and ETFs is that it is time to stop speculating, to stop with the immense quantity of adrenaline. Professional traders speculate on the evolution of commodities and silver is one of the major commodities whose evolution has been so spectacular in the last years that it attracted a lot of investors.

When speculating, when investing into silver, or when you want just to sell silver, do not forget to keep yourself updated, to check the silver spot price daily, and to analyze when it is the best time to perform any action of any kind.