Silver coins are a popular way to invest in precious metals and commodity markets. They give investors direct control over an asset, providing a degree of reassurance and certainty at a time when much of one’s wealth is both digital and exposed to counterparty risks.
While many people buy silver as a long-term investment, potentially even one that they plan to give as part of an inheritance, others set out to make a profit.
Investors who actively trade silver coins don’t just need to buy the precious metal, though. They also need to sell it. It can feel like a tricky part of the equation, but it doesn’t have to be. With the number of bullion dealers available today, it’s never been easier to sell silver coins for a fair price.
Working with the Right Bullion Dealer
Timing is only half the discussion when it comes to selling silver. You also need to make sure you’re working with the right buyer. These are some of the qualities to look for in a bullion dealer:
- They make their prices for buying bullion public
- They purchase both gold and silver
- They have good reviews and a positive reputation
- They buy both in-person and by mail-in
- They do transparent evaluations right in front of you
Once you find the right bullion dealer to work with, you can focus on the broader market conditions.
Finding the Right Time to Sell Silver
Many investors buy silver as both an inflation hedge and a way to ride out market volatility. It doesn’t always make sense to sell just because prices are higher. Your timing should fit your plan.
#1 You Have a Plan for the Profits
Selling an asset just because prices are high is rarely the best investment plan. Every investment comes with a goal, and in order to reach your goal, you need a broader strategy. The question is: what else are you doing with the profits?
You only need a simple answer. Selling silver is a great way to pay down debts or even fund a vacation. If you want to keep the money invested, you should have another opportunity already in mind.
#2 You’re Outgrowing Storage
At a certain point, owning physical silver bullion can stretch your available storage. You need a safe, a safety deposit box, or a third-party storage solution. This can come with its own costs, including insurance, and the larger your holdings, the more capacity you need.
Once you’ve outgrown your storage, it makes sense to unload some silver. If you’d rather keep the funds in bullion, you can swap your silver for gold. The price ratio means you can significantly reduce the strain on your storage capacity while keeping your money in bullion.
#3 You Need to Rebalance Your Portfolio
Rebalancing your portfolio is an important task that will maximize your returns and minimize your risks in a diversified portfolio.
While you may start with a balanced portfolio that allots a certain percentage to stocks, bonds, and alternatives (such as gold or silver), as prices change, that balance shifts also.
When you rebalance your portfolio, you sell off some of the assets that have been more successful and take those proceeds to buy other assets at what should be a discount.