GoldQuestions
Selling silver to a dealer
Selling silver is not the reverse of buying it, because VAT paid at purchase is not recovered and dealer buyback quotes focus on metal value and spread.
Last reviewed: 2026-06-01
VAT paid at purchase is not recovered
A UK retail buyer usually paid 20% VAT when buying physical silver. That VAT is not refunded when the silver is sold. Dealer buyback quotes are normally based on live silver value, product type, weight, purity, condition, recognition, and the dealer spread. This is why a seller can be disappointed even when the silver spot price has risen.
Worked round-trip example
The VAT cost shows up clearly in a simple round-trip calculation. The example below uses a 10oz silver bar, a 5% dealer premium at purchase, and a later dealer buyback quote at 97% of spot after the spot price has risen by 25%.
| Item | Amount |
|---|---|
| Spot value at GBP 25 per oz x 10oz | GBP 250.00 |
| Dealer premium at 5% | +GBP 12.50 |
| Subtotal before VAT | GBP 262.50 |
| VAT at 20% | +GBP 52.50 |
| Total paid | GBP 315.00 |
| Silver rises 25% to GBP 31.25 per oz, sell at 97% of spot | GBP 303.13 |
| Net result | GBP 11.87 loss despite a 25% spot rise |
Selling process
Get quotes from at least two dealers on the same day. Compare each offer as a percentage of spot using: offer divided by spot value times 100. Check how long the quote is valid, whether the price can be locked, and whether same-day postage is required. Pack silver in a plain box with no external indication of contents. Use an insured tracked service appropriate to the value, such as Royal Mail Special Delivery where suitable. Payment is commonly by BACS after inspection, often within one to three working days, but terms vary by dealer.
Comparing dealer quotes
A useful comparison uses the same spot reference, the same weight, the same purity, and the same product condition. Recognised bullion bars and coins usually attract clearer quotes than obscure rounds, mixed sterling, damaged products, or items without paperwork. Some UK dealers publish indicative buyback percentages online, but live quotes can change quickly. Keep records of quote time, quoted rate, product description, postage terms, inspection terms, and settlement timing.
ID checks, inspection, and settlement
Dealers may ask for identity checks, especially for larger transactions or repeat activity, because precious metal dealers operate under anti-money-laundering rules. A posted sale is usually provisional until the dealer receives and verifies the silver. If the dealer revises the quote after inspection, the seller should already know whether the item can be returned, who pays return postage, and whether any testing or handling fee applies.
Key points
VAT paid when buying silver is not recovered when selling. Compare dealer offers as a percentage of spot, not only as a cash number. Quote expiry, postage, insurance, inspection terms, and settlement timing all matter. Keep invoices, photographs, product lists, quote records, and tracking details. This guide is educational only and does not rank or recommend dealers.
Educational disclaimer
This guide is educational only and is not financial, investment, tax, legal, or personal advice.
FAQs
Can VAT paid on silver be recovered when selling?
No. A private UK seller does not recover the 20% VAT paid at purchase. Dealer buyback quotes usually focus on metal value, product recognition, condition, and spread.
How should I compare silver dealer quotes?
Compare each offer as a percentage of spot using offer divided by spot value times 100, and check quote expiry, postage, insurance, inspection, and settlement terms.
How do dealers usually pay for silver?
Many dealers pay by BACS after receiving and inspecting the silver. Settlement is often one to three working days, but each dealer sets its own terms.
Do dealers require ID when buying silver?
Dealers may require identity checks, especially for larger transactions or repeat activity, because precious metal dealers operate under anti-money-laundering rules.
Does this site rank silver dealers?
No. This site explains comparison factors and does not rank, recommend, or endorse specific dealers.
Should silver be cleaned before selling?
Not automatically. Cleaning can damage coins, reduce collector appeal, or make a dealer more cautious. Ask the dealer what condition they expect before doing anything irreversible.