Five key things to know before you sell your silver coins, bars, jewelry or flatware
By Charles Passy and Andrew KeshnerThe precious metal has seen a huge spike in value over the past year, leading many to consider cashing in on what they haveSilver reached a record spot price of $82 an ounce recently, and many people are deciding to sell their coins and other silver items.Is it time to sell your silver?That's the question some may be asking in light of the fact that the precious metal's price (SI00) has risen well over 100% in the past year, reaching a record level above $82 an ounce on Monday. After all, many people have some silver tucked away in their closets in the form of flatware, coins and jewelry. Others may have purchased silver bars for investment purposes.Sure enough, those who buy silver for a living say they've been plenty busy of late responding to such folks."[We're] seeing a deluge of silver sellers like we never have before," said Brandon Aversano, CEO and founder of the Alloy Market, a Pennsylvania-based company that specializes in precious metals. Aversano noted that his firm has purchased nearly twice the amount of silver in the second half of 2025 as it did in the first half.Fueling that demand, of course, are buyers aplenty who want a stake in silver, given the price gains of late."I've sold more silver in the past two weeks than I've probably sold in the past six months," said Phil Neizvestny, owner of Bullion Holdings, a company based in New York City's Diamond District.If you do want to sell your silver items - whether it's a set of cutlery you inherited from grandma or coins you collected long ago - what do you need to know? We spoke with some experts to find out. Let's break it down into five questions.1. Where can you sell your silver?There are options galore. You can always head to your local pawnbroker or a merchant who specializes in coins or precious metals. You can also go the internet route, which will involve shipping your silver to a company that conducts such transactions.Auction houses are yet another option, particularly for collectible items that have value beyond their intrinsic "melt value" (more on that later). There are also platforms like eBay (EBAY), as well as social-media groups where buyers and sellers can connect.Which option is best? Keep in mind that you can't generally expect to receive the current market (or "spot") price for your silver, since sellers have to make money on the transaction. "There is a bid/ask spread just like there is for any other traded asset," explained Trip Brannen, chief financial officer at Coinfully, a company that appraises and purchases coins.Experts say you will tend to get higher prices at online outlets - which typically have less overhead - but you then have to deal with shipping and you will also wait to receive your money. Pawnbrokers and other local merchants may pay less, but you'll get your money right away.And while going the eBay or social-media route can result in good prices, you need to ask yourself if you're willing to deal directly with buyers.No matter how you opt to sell, the usual caveat of getting different price quotes applies - don't presume the first offer is the best. You'll also want to check the buyer's credentials or applicable ratings. And if you're dealing with an online buyer, see if they'll pay for shipping and insure your package.Phil Neizvestny is the owner of Bullion Holdings, a company based in New York City's Diamond District that buys and sells silver and gold.2. How can you tell if an item is real silver?First you should know that any item you have will not be 100% silver. That's because pure silver is so soft it needs to be combined with other materials to make it durable. Even the highest grade of silver, known as fine silver, is still just shy of that 100% mark, at 99.99% pure. Sterling silver is 92.5% pure.The most obvious way to tell if your coins, jewelry and flatware are indeed silver is to look for certain markings - called hallmarks or stamps - although these can vary depending upon the country of origin.Sterling silver, for example, is often identified with a "925" mark, which refers to that 92.5% level of purity. And items made by silversmiths may have their own special mark: A piece made by renowned American craftsman Paul Revere, for instance, will be marked "Revere."Items that are silver-plated can sometimes be marked as well, although their value is generally have much lower.Beyond looking for markings, there are other tests you can apply to see if your silver is, well, silver. One of the most basic is a simple magnet test. Silver is nonmagnetic, so if an item is attracted to a magnet, it's not the real deal.When in doubt, take your item to a reputable expert or dealer: You never want to make the mistake of presuming something isn't silver and treating it as such. You could be throwing money away.3. Are some items worth more than their 'melt value'?Yes. That's where what's known as collectible silver comes into play. Certain coins, pieces of jewelry or select flatware or serving pieces - even grandma's cutlery - can have added value. "One of the biggest mistakes I see is people scrapping items that should have been sold intact to collectors or specialty buyers," said Liz Fackelman, a collectibles adviser based in the Charlotte, N.C., area.In fact, properly identifying your silver is more important than trying to time the market, Fackleman added. "Silver prices fluctuate, but misidentifying items can cost far more than waiting for a slightly better spot price."Again, an expert or dealer can advise you if you need help sorting through what you have.4. Should you clean items before you sell them?Many experts advise against doing this. "Overcleaning can remove patina, soften detail and reduce value - particularly for antique pieces. When in doubt, leave it as is," said Emily Otranto, lead researcher with M.S. Rau, a prominent antiques, art and jewelry business.5. What about the tax implications?Catching the ride on silver's prices may feel great. Then come the taxes. The Internal Revenue Service will be ready to levy capital-gains taxes on any sale of silver heirlooms, coins or collectibles, said Barbara Weltman, author of "J.K. Lasser's 1001 Deductions and Tax Breaks.""It's just like any other asset. If there's a gain, you have to report it," she said. The challenge with long-held silver may be unearthing the "cost basis," or the amount originally paid, in order to determine the profit that is subject to tax, Weltman said. "Go back and try to find some record, some way."Wealthier silver sellers have another tarnish, because they could be paying more in taxes. Depending on income, capital-gains taxes top out at 20%, plus another 3.8% net investment income tax. However, precious metals such as silver bullion count as a "collectible," with a gain that's taxed at a rate of up to 28%, the IRS says. This higher rate effectively applies to people in the top three tax brackets, while the collectible tax below that would be the households' ordinary income-tax rate, experts say.The same tax rules may apply when selling shares of exchange-traded funds that hold physical silver and gold.More: Why silver's surge relative to oil should be a warning sign for investors-Charles Passy -Andrew KeshnerThis content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.