Buying Silver on eBay

In the recent weeks, many have rushed to buy silver as they have seen it trend upwards.  Your first inclination may be to go to the place down the street to purchase your silver rounds or bars at a coin/metals retailer. Yet there is an alternative that some may not think of: eBay.

I decided to invest in silver a little over a month and a half ago when silver was $36 per oz., with some of the money I obtained as a result of my high school graduation.  I drove down to the local retailer, The Coin Index, a coin/metals retailer located 20 minutes south of downtown Indianapolis. I did not know it at the time, but I would find a much better deal, courtesy of sellers on eBay. 

The spot price the day I bought the Engelhard American Prospector 1 oz. round was $36 per oz. Yet the final price was roughly $43.76. After Indiana’s 7% sales tax ($2.52 on $36), the mark-up price was roughly $5.24.  No more than two weeks later, I purchased another silver 1 oz. round, but this time, for $38.95, including the shipping, while the price per oz. was still around $36.  After that purchase, I opted only to buy my silver rounds/bars through eBay, and currently have purchased 4 oz. from sellers on the site. 

Yet before you go and decide to purchase silver on eBay, I have some tips and suggestions for you. One thing you must remember is that the old adage about something being too good to be true doesn’t apply.  Many eBay sellers (myself included) will sell things way under market value to unload it quickly when we need cash (one seller listed his reason for listing it under value as his recent unemployment). These sellers are the reason why I’ve saved so much money as opposed to going to the local retailer for my silver boullion. An unrelated example of this online phenomenon- I was able to purchase all six Rocky movies on DVD for under $28 including shipping.  You would be surprised about all you can find on eBay for even a fifth of the the market price. 

My first suggestion: avoid Buy Now if you can help it. Sure, a $5o Buy It Now price plus free shipping for a 1 oz. round looks great, but if you spend the time bidding and shopping around, you may be able to save $4-$5. My favorite strategy is to put an item on my watch list, and bid on it maybe $2 above the maximum bid in the last few seconds. This is called sniping, and I’ve become pretty good at it. It’s actually how I have bought 2 silver rounds.

My second suggestion: use the search criteria to your advantage. Currently, a decent price for 1 oz. of silver on eBay is $45-$46 an oz, with the current spot price at $40.87 (as of writing this) and trending upwards.  Always consult coininfo.com for the current spot price before you purchase silver.

The search criteria bar is at the left of the screen.  Bypass the condition criteria, silver is silver, new or old. In the price criteria input, I put $0.00 to $46.00 in.

The next criteria will be seller. This does not really matter to me, as long as the person has a 97%+ approval percentage, I’ll buy from them.

As far as buying formats are concerned, a safer road to go down is Buy Now, but much better deals can be obtained if the Auction price has not gone beyond your maximum you feel comfortable spending on an ounce.

The next criteria is about shipping. I typically go with free shipping because as a seller, I know how well people clean up on shipping. The average shipping price on an ounce of silver is no more than $2.00, yet many sellers will list it as $4-$5.  Before I listed all of my items as Free Shipping, I was able to get a good kickback on shipping, yet realized I could move more products with the psychological addition of Free Shipping.  

As far as the location criteria is concerned, the majority of the sellers are in these United States, so that’s not an issue.

Another suggestion?  Use eBay’s Gold and Silver Boullion Center.  This will save you time and omit extraneous products such as keyboards that are sold by a company that has ‘silver’ in its name.  And the Boullion Center has criteria that can save you a lot of time as well- such as the weight. Say you want to save some money by buying 5 or 10 oz. of silver, as opposed to a 1 oz. round or bar — you can select those options from a drop-down menu.  This center also separates the good sellers from the sleezy ones, so the transaction can be more trusted and secure. 

Anyways, thanks for reading, and happy buying. I am all about investing my money in physical commodities as opposed to dollars, stocks, or bonds, which are tied to the disastrous policies of the Federal Reserve. Recently, the Stock Market has been quite bearish, so there has never been a better time to invest in physical silver or gold.  Feel free to contact me with any questions by clicking on my name at the top of this post and then selection “contact” on the page that brings you to.

Published in

Post a comment