5 Costly Mistakes to Avoid When Selling Gold and Silver to Dealers

I’ve watched people lose thousands – don’t make these gold & silver selling mistakes

After twenty years helping clients navigate precious metals deals, I’ve seen the same costly errors repeat like clockwork. Whether you’re selling grandma’s old coins or liquidating part of your portfolio, these five mistakes can literally cost you thousands. Let’s fix that.

Mistake #1: Thinking “Silver is Silver”

Why identical weights don’t mean identical value

Last Tuesday, a client brought in ten “silver dollars” expecting the same offer for Morgan dollars and Silver Eagles. The difference? $1,850 vs. $2,400. Here’s what most sellers miss:

• Popularity pays: Coins like Silver Eagles sell faster, so dealers pay more
• Dealers aren’t melting most coins: They’re reselling to collectors like you
• Your “rare” coin might be common: Mintage numbers dramatically affect value

What I tell my clients:

Always check buy prices for your exact coins on dealer sites like JM Bullion or SD Bullion. Different dates, mints, and conditions can swing values by 20% or more.

Mistake #2: Forgetting Dealers Need to Eat Too

That “lowball” offer isn’t always a scam

“But spot price is $28!” I hear this daily. What sellers don’t see:

“My best dealers explain their costs upfront – if they can’t cover 15% overhead, they can’t stay in business to buy your gold next time.”

When to walk away:

• They won’t show you current buy prices from wholesalers
• Their “fees” add more than 8% to their spread
• They pressure you to decide immediately

Mistake #3: Believing Everything Gets Melted

Picture this: You inherited grandpa’s “junk silver” coins. Before you sell them for melt value, know this:

• Dealers resell 9 out of 10 coins to collectors
• That scratched 1921 Morgan dollar? Could still be worth 3x melt
• Modern bullion often trades closer to melt than vintage pieces

My golden rule:

Never sell coins older than you are without checking collector value first. A quick eBay “sold items” search could reveal hidden treasure.

Mistake #4: Taking the First Offer

How $1,800 becomes $2,400 in three calls

1. Local shops: Great for quick cash, usually lowest offers
2. National buyers: Better prices but require insured shipping
3. Auction sites: Potential for highest returns if you can wait

Last month, a client’s Krugerrand collection fetched $1,925 at the mall… and $2,415 from an online specialist. That $490 difference took two extra days.

Mistake #5: Chasing Price Spikes

Why selling during surges often backfires

When gold jumps $100 overnight, sellers rush in – but here’s what happens:

• Dealers get flooded (lower offers)
• Processing times triple
• Wholesale buyers pull back

Better approach:

Set price alerts at 5% above the 30-day average. Steady markets mean fairer prices and faster payments.

Turn Knowledge Into Profit

• Treat different coins differently – one size never fits all
• Good dealers explain their math – ask!
• Always get three offers (your wallet will thank you)
• Check collector value before assuming “melt price”
• Patient sellers make 12-18% more on average

Remember: The difference between a good deal and a great deal comes down to avoiding these five traps. Now go turn those coins into what they’re really worth!

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