Coins are a popular way to invest in silver. People build collections out of old circulation coins, numismatic coins from around the world, and bullion coins minted around the globe. Others collect silver jewellery, flatware, tea services, heirlooms, and antiques, whether to enjoy them for personal use and display or in order to give them away to a loved one someday.
While some collect silver as a hobby, others do so with the goal of turning a profit in the future. These investors may look for collectibles that will appreciate in value over the years, steep discounts on junk silver that they can turn around later, or they can invest in bullion coins and watch silver spot prices on the markets for the right time to sell.
How to Make the Best Return on Silver
Turning a profit from commodities relies on that one simple rule that everyone has heard before: buy low, sell high. If you bought the silver yourself, you could calculate your returns once you get a quote for your silver. Don’t forget to calculate inflation in your ROI before you agree to sell.
Estimating your return can be harder if you’ve inherited collectible or junk silver. It may matter less what the original purchase price was and more that you’ve made the most of it and maximized your returns.
You want to sell when prices are high, but waiting too long can wind up hurting you if you misread the market. Unfortunately, the truth is that even the experts have a hard time reading the market.
The good news is that you don’t have to perfect the art of selling silver, but if you do want to sell with the goal of making a decent return, these are some of the signs that the time is right to find out where to sell scrap silver in the GTA and cash out.
Inflation Is High
The cost of living is rising faster than it has in decades, hitting a 31-year high and continuing to grow. As inflation makes groceries, gas, and consumer goods more expensive, it becomes much harder to keep savings in cash.
As investors look around for alternatives that aren’t as volatile as stocks, many find assets like precious metals to be a well-tested safe haven asset.
Inflationary environments tend to push demand for precious metals, so it can be a good environment in which to sell.
As a counterpoint, you may want to hold onto silver during times of high inflation, as precious metals are seen as an inflation hedge.
Commodities Are Rising
High-inflation environments also tend to come at a time when commodity prices are rising. Commodities are the raw goods consumed to make everything from dinner to your car, so that’s where your extra budget is going.
Silver is an important commodity used in a number of industries, including electronics, medicine, solar energy, batteries, dentistry, jewellery, and more. As demand for these goods increases, silver prices tend to rise.
Trying to guess how high prices will go before you sell can increase the risk you take on. Silver has historically been quite volatile, and prices can fall steeply. Always look to your ROI and personal need.
Interest Rates Are Low
Climbing interest rates have two impacts on silver prices:
- They tend to slow economic growth as saving becomes easier, but borrowing and spending become more expensive. This slows consumer demand for electronics, vehicles, jewellery, and other goods that use silver.
- They tend to make conservative paper assets like bonds more appealing than commodities, as strong interest rates mean strong returns from a relatively safe asset.
Interest rates tend to climb as inflation picks up pace, as they’re often used by central banks to control economic growth and keep things on an even keel. The effect of rising interest rates can be conflicting, so it’s worth watching the markets to see which direction silver prices are headed.
When You Hit Your Desired Margins
The economics behind silver prices are complex, and even analysts who devote their lives to these calculations cannot accurately predict where prices are going. Instead of trying to predict prices, look at your own margins. Have you earned a profit you’re happy with? If the answer is yes, there’s no better time to sell silver coins. It can help if you set out your desired returns and clear goals before you buy silver.
It can be harder to determine the margins that you’re after when you’re selling inherited silver. When this is the case, do your research before you determine your number. Compare the purity and weight of the silver you have with current prices and don’t be afraid to get competing quotes. Even if it’s inherited, you can still get a better price if you’re patient enough to find the best offer.