Silver prices peaked in the early '80s at over $40 an ounce and then retreated to mostly under $5 an ounce until 2003. In 2008, silver reached highs around $20 an ounce, prompting investors who were stuck with silver bullion for decades to start selling. Silver bullion is bought and sold on U.S. and international markets. There are also several large corporate dealers that will buy bona fide silver bullion. Small amounts of bullion can be sold to jewelers, coin dealers and individual investors.

U.S. Markets for Silver Bullion

The largest market for silver in the U.S. is at the Commodity Exchange, Inc.(COMEX), a division of the New York Mercantile Exchange (NYMEX). The contract size is 5,000 troy ounces and it is traded as a futures contract, with delivery and due dates for major contracts in March, June, September and December. The trade symbol for the electronically and floor-traded contract is "SI2." They also trade a half-sized contract called the Silver-MiNY-COMEX, symbol "QSiC" that consists of 2,500 troy ounces. To trade silver on the COMEX you either have to be a member of the exchange or go through a certified brokerage firm. International markets are found in London, Paris, Hong Kong, Tokyo and other major cities.

Spot Silver Bullion Dealers

The "spot price" of silver bullion is the price it is trading at the current time. There is a difference between what a buyer is willing to pay (the bid price) and what price a seller is willing to sell (the asking price or offer). If you are selling bullion, you will usually be given the lower value or bid price for your bullion. Silver bullion dealers will quote you a price based on the markets that are trading silver. When the U.S. markets close, spot prices are obtained from Asia or Europe. There are large numbers of silver bullion dealers listed on the Internet.

Local Sales

Silver bullion and silver coins can be sold to local jewelers who will melt them down to make jewelry. Check the spot price on the Internet or through an exchange to make sure you are getting a fair price. It is common for dealers of all sizes to offer a price slightly below spot value for your bullion. Coin dealers usually buy silver bullion in the form of bars as well as bullion coins. Don't expect to get any premiums except for silver coins that have numismatic value as well as bullion value. On-line auction houses, such as eBay, are also places to sell small amounts of silver bullion to individual investors both in the U.S. and abroad. Most banks in the U.S. do not buy or sell silver bullion.

Source:

COMEX Futures Contract

Internet Dealers

I would strongly suggest checking out the Silver and Gold Exchange before selling gold or silver to ANYONE. I did a great deal of research, online and offline, and learned a lot about this business. I checked pawn shops, jewelers, "gold parties", hotel "buying events as well as the online buyers, including the "as seen on tv" guys. I found that the Silver and Gold Exchange paid more than anyone else I could find. I liked the fact that they post the prices they pay per gram (beware of the places that quote in pennyweight/DWT) on a live price chart at http://SilverAndGoldExchange.com I also checked out their Better Business Bureau report and found they have never had a single complaint as opposed to HUNDREDS of complaints some other companies have! I can recommend them 100%