Five Mistakes To Avoid When You're Selling Silver

Investing in precious metals like silver is known to be a safe investment during times when the market is experiencing an especially high level of volatility. However, there are a few fatal mistakes you need to avoid to ensure that you get the most out of selling silver.

Failing to research and find out what the market price is currently

The price that scrap silver is selling for is fluctuating all the time. You need to know what it is currently before you begin negotiating with a buyer so that you get a fair price for what you're selling. 

Different dealers like Tri-City Pawn Inc. may make slightly different offers for your silver, but generally offers should correspond loosely with the market price.

Letting buyers convince you that silver sold as scrap is worth less because it consists of broken pieces

When you're selling any precious metal for scrap, the condition of the original jewelry pieces or items the silver is used in shouldn't matter. 

Don't let any buyer tell you that you're going to be offered less because you're selling broken jewelry pieces or other broken silver items. If you're selling scrap silver, the amount you get should be based on the weight of the silver and not on whether or not pieces are broken or irregularly shaped. 

Not taking the time to weigh your silver yourself beforehand

In addition to checking out market prices, you should also weigh what you have. The market rate for silver should be a certain amount per weight unit. 

The heavier your silver, the more money you can get for it. Make sure you have a good idea of how much you have and how much it should be worth before you even start negotiating with a buyer.

Selling collectible silver items as scrap material

Take some time to evaluate your silver pieces. If you have collectible pieces or antiques, you should definitely see if you can get more for them than you could selling your silver as scrap. 

Failing to understand the tax implications of selling silver

According to the I.R.S., silver is a capital asset. This means that any profit you make in selling it will be counted as taxable income. Tax law requires you to report what you earn selling silver to the I.R.S. If you fail to do so and you are audited, you may face tax penalties and have to pay interest on any outstanding tax liability you have over time.