Using Silver as payment question

[Bald1]

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.

 

[THE PILGRIM]

If I was the Silver Dude- hold on, I am a Silver Dude.
I would offer you 20 ounces.
Since we seem to be playing out an Ounce Scenario, you accept or counter
21 Ounces.
Then he has the option of accepting or refusing to budge above 20.

 

[Imissedagain]

Payment in silver should equal $600, if that's what you want for the gun.
You should be able to take the amount of silver you receive, walk into a business that buys silver, and walk out with $600 cash.

 

[Muss Muggins]

Hard pass.

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.

 

[Bald1]

Payment in silver should equal $600, if that's what you want for the gun.
You should be able to take the amount of silver you receive, walk into a business that buys silver, and walk out with $600 cash.

This is what I’m thinking. And that would involve a “commission” to buyer of silver. So to me a 10oz bar is worth $280 not $300.

 

[Bald1]

If I was the Silver Dude- hold on, I am a Silver Dude.
I would offer you 20 ounces.
Since we seem to be playing out an Ounce Scenario, you accept or counter
21 Ounces.
Then he has the option of accepting or refusing to budge above 20.

Yeah I was doing the oz thing because at $30 it was simple math. I would imagine there’ll be a small amount of cash one way or the other. What I really want would be two 10oz bars and a couple dollars. I’m not interested in 1oz coins.

 

[Bald1]

Hard pass.

Not long ago I’d have said the same thing. But I’m trading a depreciating asset for more than I have in it and for an asset that has the potential to appreciate. I’ve always been curious about silver but the spot price and commissions never made sense for me. This MIGHT be a way to avoid commission and get it at a discount.

 

[paplinker]

I think the sellers thought might be if silver spot is worth $30, if he pays $30 per oz towards your gun, he saves 2 dollars an oz giving it to you and you would save 2 dollars an oz not buying from a dealer. That is assuming buying 2 over and selling 2 under.

It could work for both of you if you have silver interest.

If he gives it to you for 28 it would be cheaper and less risky for him to just sell it local and send you a check and have no shipping.

I would be ok with that deal but it might not be for others.

 

[llowry61]

FWIW, I would advise x ounces or 600 cash. It would be up to him to accept or decline.

I would not offer spot price there has to be a discount, or it doesn't make sense. Why on earth would anyone accept payment in a form that the minute they take possession is worth 5-10% less than the item they are selling.

 

[SMSgt]

I'm a firm no.

 

[Ματθιας]

If you don't know what you're doing, don't do it.

Just tell the guy you want cash and be done with it.

Then if you want to dabble in metals, that's on you and on your terms.

 

[375hh1973]

If I am selling anything and you show up with anything but cash or venmo, deal is off.

I don't want metals, or gems, or chickens or goats

 

[cololab]

I wouldn't do that trade, but I approach that position because I don't trust the fluctuations in the metals market. Also the much more limited manner in which one can "spend" precious metals for needed goods and services without first cashing them in at some metals dealer seems to me to hamper liquidity.

However, to those who have an interest in holding precious metals, I fully acknowledge that I may be overlooking clear advantages by not doing so.

 

[paplinker]

FWIW, I would advise x ounces or 600 cash. It would be up to him to accept or decline.

I would not offer spot price there has to be a discount, or it doesn't make sense. Why on earth would anyone accept payment in a form that the minute they take possession is worth 5-10% less than the item they are selling.

Today if I was looking to buy silver no one will be willing to sell to me at spot. Or at least here. If I had no silver investing interest beforehand I would pass on this deal, but if I did have interest and I also would rather have a cash sale on my gun it does seem like this would be do able.

I have not ever done a silver deal so I am trying to get this whole thing on both sides.

Seems if I owned silver why risk shipping and the extra charge? I would be better served to sell local.

 

[Kanewpadle]

No.

Unless you weigh each round or bar. Silver is very easy to counterfeit.

Friend of mine owns a pawn shop that deals heavily in coins and silver. Seen it many times.

 

[Bald1]

This is a local face to face sale. I am interested in dabbling in metals. Silver specifically. He simply asked if it was something I’d consider. He seems like a mild prepper kind of guy. Truth be told he’s buying something I have no interest in.

 

[Denverd0n]

If you were buying silver bars, a good, fair price would be spot + 9%. So doing an even trade at spot would be a cheaper way for you to get into silver.

On the other hand, when selling silver, you're probably not going to get more than spot - 6%. So if you want to turn it around for cash, you would be coming up short.

It's really a question of whether or not you want to get into silver, and why, and how. If you don't have good, solid answers to those questions right now, then it is probably best to just do a cash deal. You can always look into silver in the future.

Good luck, whatever you do.

 

[Rudi]

No.

Unless you weigh each round or bar. Silver is very easy to counterfeit.

Friend of mine owns a pawn shop that deals heavily in coins and silver. Seen it many times.

Get a digital scale. No questions then.

 

[LoboGunLeather]

No.

Unless you weigh each round or bar. Silver is very easy to counterfeit.

Friend of mine owns a pawn shop that deals heavily in coins and silver. Seen it many times.

^^^^^This^^^^^^

Just about all of the many silver coins and bars have been counterfeited, and the paperwork purporting authenticity is even easier to reproduce.

This is not a potential marketplace for novices.

 

[Maddog 521]

Cash is still King.

 

[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.