Selling silver bars: Highest prices through direct trading with private buyers

Summary

• Private sales of silver bars on PreMeSec bypass the dealer margin and the high price deductions of banks.

• The value is primarily determined by the current silver price.

• Silver bars are subject to value added tax (VAT) in Switzerland, which affects the selling price.

• Selling bars stored in a bonded warehouse (DFW) directly in the bonded warehouse avoids unnecessary import tax/VAT payments.

Silver bars are purely an investment product. Their value is easy to determine, but selling them requires an understanding of the specific market dynamics in Switzerland, particularly taxation.

Valuation: The decisive factors when selling bullion

The most important basic rule in trading any commodity is to know its value. In the case of silver bars, the value is mainly determined by the price of silver.

Determining the value of a silver bar:

The price you can ask for a bar is above the price a dealer would pay for it, but probably below the price a dealer would ask for it. You should never sell a silver bar for less than the current price of silver.

The market value published on our product pages can be used as a guide:

• Metal value of 100 g silver bar

• Metal value of 500 g silver bar

• Metal value of 1000 g silver bar

• Metal value of 5000 g silver bar

Alternatively, the price can also be calculated:

• Price calculation: Silver price per kilo / 1000 * number of grams in the bar.

Whether or not VAT has already been paid on a bar can have an impact on its resale value.

Bars that are physically stored domestically (VAT paid): Anyone who has purchased a silver bar from a dealer and taken it home has had to pay VAT on it. Such a bar can be resold from private individual to private individual. As a rule, no additional VAT is payable on this private transaction. A buyer therefore has the choice of either purchasing a bar from a dealer (with VAT on the bar and a surcharge) or purchasing the bar from a private individual at a freely negotiable price, in which case no additional VAT is payable.

Bars stored in a customs warehouse (VAT-free): The other option is that a bar was purchased once in a customs warehouse without VAT. Although the customs warehouse bar was tax-free at the time of purchase, the buyer must factor in future logistics costs. These costs include storage fees in the DFW and the potential import tax (VAT) that will be due if the bar is later removed from the DFW. These future costs reduce the attractiveness of the DFW bar compared to a bar already stored domestically. This rational calculation has a direct influence on the price a potential buyer is willing to pay.

Register now and sell silver bars on PreMeSec.ch!

Selling silver bars in a duty-free warehouse (DFW)

Unlike gold, the sale of silver bars in Switzerland is subject to full value added tax (VAT). More and more investors are therefore taking advantage of VAT-free purchases of silver, which is then stored in duty-free warehouses. What many private individuals do not know is that such silver can also be sold to other persons and, if necessary, transferred. For example, a seller can instruct his warehouse keeper to hand over his silver to the buyer's warehouse keeper in the duty-free warehouse. At PreMeSec, duty-free storage is a feature that is specified in every offer and can also be filtered.

• Duty-free warehouse advantage: Bars stored in a duty-free warehouse (DFW) can be traded tax-free as they are not considered imported for customs purposes.

• Dealers and banks: Banks and dealers rarely purchase bars directly from the DFW, or only if they work directly with the respective warehouse operator. This generates logistics costs.

• Selling on PreMeSec: On PreMeSec, you can offer the bar with a specific filter criterion that signals to buyers that the bar is located in the DFW. This attracts buyers who want to purchase the bar tax-free and results in the highest net price for the seller.

Bullion sales psychology: logos, condition and certificates

• Are silver bars with dealer/bank logos worth less? (Yes and no): Independent dealers can only resell bars with the refinery logo directly without a discount. In the case of bars with bank logos, buyers often expect a discount because they know that these bars do not come directly from the refinery but have been purchased. This is irrational, but relevant for pricing. As a result, a dealer is able to pay more for bars that only bear the refinery logo than for a bank bar that he has to melt down or sell at a discount.

• Condition and patina: Silver tarnishes when it comes into contact with air (patina). This does not reduce the pure metal value, but can lead to slight price reductions at traditional dealers. Again, this is due to resaleability. Customers pay more for freshly minted bars or those that have not tarnished than for those that have already tarnished. For this reason, many refiners have started to seal bars weighing up to 5 kg in airtight foil or to treat the surface. This prevents the bars from tarnishing.

• Certificate: The certificate of authenticity or blister packaging, if available, should be presented for sale, as this also increases resaleability and the price paid. At PreMeSec, the presence of a certificate is a feature that is specified for each offer and can also be filtered.

Sell silver bars profitably in 3 steps

It is easy to find a private buyer on PreMeSec, Switzerland's first trading platform for precious metals. PreMeSec checks each user individually; only those who have registered with a telephone number and passport or ID are allowed to buy or sell gold or silver bars.

1. Determine the value of the silver bar: Use the current market value and set the price, taking into account the DFW status and condition.

2. Create an auction or listing on PreMeSec.ch: Use good images with a neutral background. For DFW bars, select the appropriate filter criteria. A detailed description of the bar is helpful.

3. Complete the sale: Once a buyer has been found, PreMeSec will provide both the buyer and seller with prepared receipts. Please note the tips for safe trading in precious metals.

Advantages of direct trading

Direct trading of silver bars on PreMeSec offers numerous advantages:

• Better selling prices: Without intermediaries (banks or dealers), sellers can achieve higher prices because no high commissions are deducted and private sellers are not subject to VAT. This is particularly advantageous for silver due to the high spread and VAT.
• Security: All PreMeSec users are thoroughly vetted. This minimises risk and ensures a safer trading environment.
• Documentation: Clear documentation with receipts reduces the risk of fraud and allows you to prove the legal sale and proceeds.
• Degressive fee structure: Unlike general online marketplaces with high fixed prices or percentage commissions, PreMeSec offers a fair, degressive fee model. The higher the selling price of your silver bar, the lower the percentage commission (down to 0.75%). In addition, no fee is charged for unsold items. This makes PreMeSec one of the most affordable platforms for trading precious metals in Switzerland.