Buying Silver at Pawn Shops

Pawnshops often have silver available to purchase, as they are always on the look out to buy silver coins and other products from people that need money fast. Their business model means that they can offer competitive pricing to silver investors as they are often dealing with “distressed” sellers. Pawn Shops are also interesting to scout around in for other collectibles and valuable items.

Watch the Silver Content

It is important to recognize that different silver coins have different levels of silver content. When purchasing silver from a pawnbroker you should ensure that you know exactly what it is you are buying. Valuation of coins should be based on the amount of silver content and the current spot price. If coins are not easy to identify and authenticate they may have reduced resale and trade value.

Rare Coins and Collectibles

If you are looking to buy rare coins with numismatic value then be very careful. Often pricing is set 30-80% above the precious metal value. With such high mark up there is often little value as the rarity does not merit such a price. It is possible to pick up some real gems at great prices though if you truly know your stuff.

Great for Junk Silver

Pawnshops can be a great source for junk silver. The managers generally keep a close eye on the spot price of silver and gold, and therefore, you will tend to pay around the market value. Many people in forums have told stories of seeing the brokers updating the prices as the markets have moved to ensure that they are selling at the current price.

If you are in a shop then you should pay the advertised rates on the products so the pawnbrokers should not be changing prices they have put on the products after you have chosen to buy. In retail the “advertised price” is binding to the retailer. It is actually illegal for them to attempt to raise an advertised price.

Finding Pawnbrokers

Pawnbrokers can be found on and through local searches on the Internet. Make a call and find out what they tend to get in and visit the ones that you consider prospects. Don’t get too excited if you see bargains. Stay level headed so you can keep your bargaining posture.

If you are travelling long distances to buy from pawnbrokers you are burning car gas and investing your time. These costs should be factored into any transaction that you complete when you assess the value you are getting.

Become a Regular

When you find a good pawnbroker make sure you make friends with them. Leave your phone number and ask them to give you a call when they get more silver. Having several sources like this can be a great way to increase your silver portfolio at very economical rates. Make friends with them!