Using Silver as payment question

[Bald1]

So looking around online, places like CL and FB marketplace I see people willing to sell silver as low as $25 oz. But it’s mostly 100oz bars. But I also see 10oz bears under $30oz . Perhaps they reflect the price when ad was posted. But what I’m learning is the “price” of silver is just a starting point for a private transaction. If you want me to take silver instead of cash, you have to make it worthwhile for me. Kinda what I thought.

 

[CAJUNLAWYER]

So I’m in the process of possibly selling something. A potential buyer asked if I’d be willing to accept Silver Buffalo Rounds or RMC 10oz bars. Both .999 and paperwork to authenticate. This peaked my interest. My question is, what is proper etiquette in this scenario? I know if he sold his silver to a dealer he’d have to pay a commission which I believe is $2 below SPOT. So why would I not want that same discounted value? Let’s say it’s trading at $30. Am I expected to value it at that? Or is it customary to agree on a value/price? Also he asked me. I feel like I’d be doing him a favor. We’re only talking about $600 or so. I’ve always been intrigued by precious metals and this would be an easy way to dabble in it. I just don’t want to insult the guy because I don’t know. …..I also realize at $30 oz I’m a little late to the party.

You'd just as soon take your payment in magic beans. What are ya gonna do with silver bars? I've got two 10oz silver bars sitting in the safety deposit for that my son bought 15 years ago when he decided to dabble in precious metals. They are doing as much good right now as a couple of rocks. Say what you want about paper money, but lots of people still take it at the drop of a hat no questions asked in exchange for neat stuff you want or need. Not so much for a chunk of silver.

 

[444 Magnum]

Why can't the potential buyer sell the silver and pay you cash?

Something else to consider is fraud. Lots of cases of both gold and silver being drilled and refilled with other metals or completely counterfeit from the start.

 

[glenwolde]

It seems to me that if you were looking to buy silver anyway, any price cheaper than you can buy it for would be acceptable. If you don't really want silver then it would have to be at the price you could sell it for.

I guess the "silver as barter" market should float somewhere between the dealer's bid and ask. Which I would assume is spot. Be aware silver spot went up like $2.00 this week. Silver is pretty volatile.

I bought a bar once out of curiosity. It's boring. It just sits there. I've toyed with the idea of casting silver bullets! For conventional investment purposes ETF's are way more convenient.

 

[glenwolde]

You'd just as soon take your payment in magic beans. What are ya gonna do with silver bars? I've got two 10oz silver bars sitting in the safety deposit for that my son bought 15 years ago when he decided to dabble in precious metals. They are doing as much good right now as a couple of rocks. Say what you want about paper money, but lots of people still take it at the drop of a hat no questions asked in exchange for neat stuff you want or need. Not so much for a chunk of silver.

Maybe you should make the deal with the OP? I've got one I paid $200 for about 10 years ago. Spot closed yesterday at $31. If I could get $29 for it maybe I should sell it.

I think I'll wait, silver may be about to run...

 

[Bald1]

You'd just as soon take your payment in magic beans. What are ya gonna do with silver bars? I've got two 10oz silver bars sitting in the safety deposit for that my son bought 15 years ago when he decided to dabble in precious metals. They are doing as much good right now as a couple of rocks. Say what you want about paper money, but lots of people still take it at the drop of a hat no questions asked in exchange for neat stuff you want or need. Not so much for a chunk of silver.

That’s funny. My idea is get the silver at a discounted rate. Maybe give them to my grand kids if I ever have any……. I’ll give ya $400 for your two bars. We’ll split the shipping.

 

[Bald1]

Why can't the potential buyer sell the silver and pay you cash?

Something else to consider is fraud. Lots of cases of both gold and silver being drilled and refilled with other metals or completely counterfeit from the start.

I’m sure he can. Or he could just reach in his wallet and pull out 6 Benjamins. It’s not a deal breaker. He simply asked if I’d consider it. I look at it this way. It’s more of a trade than sale.

 

[SMSgt]

Maybe he thinks it's a good way to get rid of a bad investment.

 

[WR Moore]

If you do the exchange, the rounds are more easily converted to cash than the bars as they have a mint provenance. There is a legitimate markup to cover minting costs. Also, you should know that precious metals are weighed in troy ounces, 12 oz to the troy pound/5760 grains. Each coin should weigh 480 grains. And you thought your scale was only good for weighing powder.

 

[redlevel]

I have traded silver for at least two guns. Never had a problem coming to a mutually advantageous deal. I would much prefer one ounce rounds over ten ounce bars. Authentication is important. Some rounds, especially American Silver Eagles, actually fetch a premium over spot price.

 

[johngalt]

Interesting question. I guess it would depend on if I have the means to test it and I wanted silver.

If I want the silver and wasn't going to immediately sell it for cash, my inclination would be to take it for spot.

If I want the cash, I would take cash.

The way I look at it, neither you nor the buyer have the obligation to cover the coin dealer's premium.

 

[mojave30cal]

If you take the silver in payment, take the silver buffalo rounds.
They are the most popular silver round currently. Pass on the
silver bars.

When you purchase silver, you will pay a premium on top of
the spot price. If you sell an item and take silver in payment,
the silver is valued at the current spot price. The buyer cannot
add the premium he paid onto the silver he is using for payment.

 

[Bald1]

Maybe he thinks it's a good way to get rid of a bad investment.

That crossed my mind. I just think that’s who he is. Meaning “prepper type”. Hoarding precious metal. Stock piling supplies etc. It also might be the only way he can afford to swing a deal.

 

[johngalt]

That crossed my mind. I just think that’s who he is. Meaning “prepper type”. Hoarding precious metal. Stock piling supplies etc. It also might be the only way he can afford to swing a deal.

There is also the concept that 'bad money forces out good money'. Meaning that people want to hoard their silver and gold, keeping it out of circulation. Instead the fiat gets spent and disposed of before its value plummets to 0.

 

[Pisgah]

Had a good buddy who traded a pristine Winchester 1895 for a bag of Morgan silver dollars. Man, he thought he had made the deal of a lifetime... but silver-plated lead Chinese fakes are not all that valuable...

 

[GaryS]

You're selling a gun to William Devane?

 

[Bald1]

You're selling a gun to William Devane?

That’s funny. Guys hawking gold all over tv lol.

 

[Denverd0n]

Had a good buddy who traded a pristine Winchester 1895 for a bag of Morgan silver dollars. Man, he thought he had made the deal of a lifetime... but silver-plated lead Chinese fakes are not all that valuable...

Classic example of, when a deal sounds too good to be true, it probably is!

 

[Kinman]

I’m sure he can. Or he could just reach in his wallet and pull out 6 Benjamins. It’s not a deal breaker. He simply asked if I’d consider it. I look at it this way. It’s more of a trade than sale.

It is in fact a trade rather than a sale. In this part of the country silver is often used in trade, there is no sales tax involved in a trade. I know of one auto dealership that will take silver in on trade for a new or used vehicle, just like a trade in...no tax on the trade in value. A friend of mine got into quite a bit of trouble with the IRS by offering his employees a trade in silver for payment....Income is the key word.

 

[SMSgt]

It is in fact a trade rather than a sale. In this part of the country silver is often used in trade, there is no sales tax involved in a trade. I know of one auto dealership that will take silver in on trade for a new or used vehicle, just like a trade in...no tax on the trade in value. A friend of mine got into quite a bit of trouble with the IRS by offering his employees a trade in silver for payment....Income is the key word.

Not anymore.