How To Invest In Scrap Silver

February 2nd, 2010 admin Posted in Articles | Comments Off

This post will teach you how to invest in scrap silver. First, the definition of scrap silver is any silver that no longer holds it sentimental, intrinsic, fashion, or other value it was originally intended for. For example, a discarded silver ring or bracelet, old silverware, flatware, certain antiques, etc.

The first thing you need to learn how to do is identify silver. Most often scrap silver will be in the form of sterling silver. Rarely you will find pure silver because of its pliability, but it still can be found in high quality jewelry. Sterling silver is simply 92.5% pure silver and is most often used in common items that later become scrap.

To identify the silver you need to learn the marks, learn the silver makers, and learn silver qualities. Marks include stamps that state its sterling or silver or 925. Watch out for ep, ppp, plated as this is just a thin layer of silver. Learn silver makers such as Whiting, Gorham Straus, Lacroix, and more. Do your research.

Learn the silver qualities such as the whiter color of silver or the oxidized blues and brown of aged silver. Drop a real silver item to hear its "clang" as it sounds different than other metals. Oxidation happens from silver's exposure to air, and is a patina blue or brown.

Next, where do you buy this scrap silver? Offline, hit up thrift stores, garage sales, auctions and antique stores. Often sellers don't really know what they have. Check pawn shops also. Recently, a friend found a Lacroix silver and gold and diamond bracelet at a thrift store for $8. The value of it was $5000! He would have passed if he didn't know what to identify.

Online you can look on Craigslist or eBay, the online marketplace. This method usually results in buying at or near spot value(the current market price), but is good to consider if you want to buy and hold rather than buy and resell. You can also buy regular silver in coin or bar form from eBay again, goldline, bullion direct, or a host of other places.

Lastly, how do you cash out? Again your best bet is to resell online, probably on eBay, because it values are closest to market values, and are what people are currently willing to pay. Avoid pawn shops, or cash 4 gold places you see on the tv or online as they want to profit off you and will give you significantly below the silver's value.

Using these steps will help launch your scrap silver investment career. Here are examples below of real scrap silver.