Are Silver Coins a Good Investment?

Investing in silver coins isn’t just for hardcore precious metals fans — it can be a smart move for anyone looking to add stability and real-world value to their portfolio. Here’s a breakdown of the key benefits silver coins bring to the table:

Unlike gold, which can be prohibitively expensive for many, silver is much more accessible. You can often pick up a 1-ounce silver coin for the price of a nice lunch, making it easier for beginners to get started without a major upfront investment. For those wishing to adopt a strategy of buying little and often (Dollar Cost Averaging), silver’s low price is far better suited than that of gold.

The gold-to-silver ratio (how many ounces of silver it takes to buy one ounce of gold) is historically high, which many investors interpret as a signal that silver is undervalued. If that ratio returns to historical norms, silver could see significant price gains.

With the growing safe haven demand for gold, the ratio stands at more than 100:1 in 2025, around 2 ½ times higher than the historical average over the past century. While this doesn’t guarantee that the silver price is due to surge, history does suggest that there may be a silver price lag.

Silver coins are widely traded and recognized globally. Whether you’re dealing with coin shops, online dealers, or peer-to-peer buyers, selling silver coins is usually straightforward, especially if you’re holding popular, government-issued pieces.

In contrast to selling a large gold bar, silver coins have a much smaller value, ensuring selling is quick and easy.

Adding silver to your portfolio helps spread risk. It tends to move differently than stocks or real estate, which can help protect your overall investment balance during market downturns or inflationary periods. It can also be a good portfolio partner to gold, creating diversity within an investor’s precious metals portfolio.

In some countries, certain silver coins (especially legal tender ones like British Silver Britannias) are exempt from capital gains tax. That means if their value goes up and you sell them, you might not owe any tax on the profit. (Always check local tax laws.)

In the UK, this tax loophole ensures that Silver Britannias dominate the local investor landscape. There are few investments you can make without any limits that do not incur tax on your profits. Feel free to ask our team for guidance on which coins qualify as legal tender and are CGT-free. Read our handy guide on how to buy silver Britannia coins.

In a world where so much of our money is digital — think bank balances, stocks, and crypto — silver offers something physical. You can hold it, store it, and even hide it if you want. While any stock’s value can fall to zero, this can never happen to silver, which holds an intrinsic value.

For many, it’s not just silver’s physical presence which is appealing, but also having complete control over your asset. With banks making it progressively difficult to spend your own money, the option of holding silver coins is appealing to enjoy financial freedom.

When inflation rises and the value of currency drops, precious metals like silver tend to hold or even gain in value. That makes silver coins a popular option for people looking to protect their purchasing power over time. This proved particularly compelling in the post-COVID world when inflation spiked to unprecedented levels, diminishing the value of currency.

While silver coins come with a lot of benefits, no investment is completely risk-free. In fact, we always describe gold investment as a way or reducing risk, while investing in silver is about willingness to take risk. Understanding the possible downsides of silver and whether it fits into your risk appetite, will help determine not only if silver investment is appropriate for you, but also aid in deciding how much.

Silver prices tend to be more volatile than gold. That means while silver can offer greater upside, it can also experience sharper dips. Daily price swings are common, so if you’re looking for a smooth, steady investment, silver may feel a bit more like a rollercoaster.

While gold’s performance can perhaps be simplified to that of a safe-haven asset, regularly appreciating when economic or political news is negative, silver is more complicated and less predictable. It’s performance harnesses not only the role of a tangible safe haven but can also thrive during economic bull runs due to the increased industrial demand.

Silver represents a higher risk, higher possible reward scenario. The level of asset allocation you give to silver should be based on your willingness to take risk, when considering the other assets you own. While silver may be deemed riskier than gold, it could certainly be argued that it’s less risky than a tech stock or cryptocurrency.

In some countries, silver bullion is subject to Value Added Tax (VAT) when purchased. This added cost can make investing in silver less appealing depending on your region.

While a majority of goods attract VAT, the tax on silver purchases seems unfair due to investment gold being exempt in many jurisdictions. In the UK, qualifying gold coins are completely tax free to buy and sell, while silver coins are not.  While this is clearly negative, silver’s higher potential upside still entices vast numbers of investors. However, the existence of VAT on silver means that investment timeframes need to be longer to create the opportunity for profit.

Silver coins are just one way to invest in silver. Depending on your goals, preferences, and risk tolerance, you might want to compare coins with other common forms of silver investment.

Silver Bars

Any investor who recognises the benefits of owning physical silver instead of a paper asset, which usually ponder whether they should opt for silver coins or silver bars.

Pros:

• Lower premiums: Silver bars generally cost closer to the spot price than coins.
• Great for bulk buying: Ideal for those looking to accumulate larger amounts of silver efficiently.

Cons:

• Less flexible: It’s harder to sell off small portions compared to coins.
• Not as recognizable: Bars may not be as widely recognized or trusted as government-issued coins.
• No CGT Loophole

Best for: Investors who want maximum silver for their money and don’t need the added benefits of collectability or legal tender status.

Silver ETFs or Mining Stocks

Silver ETFs (Exchange-Traded Funds) let you invest in silver without physically owning it. Some track the price of silver directly, while others focus on silver mining companies.

Pros:

• Convenient: Easy to buy and sell like a regular stock.
• No storage hassle: No need to worry about theft, space, or insurance.
• Potential for dividends (with mining stocks)

Cons:

• No physical asset: You don’t own actual silver.
• Paper risk: Subject to market and institutional risks.
• Fees: Some ETFs charge management fees that can eat into returns.

Best for: Investors who want exposure to silver prices without handling physical metal.

Each method has its place. Some investors even mix and match — holding both physical coins for security and ETFs for liquidity and market exposure. It all comes down to your personal strategy and comfort level.

Is it worth it to invest in silver coins?

Yes, silver coins can be a worthwhile investment. They offer a tangible hedge against inflation, portfolio diversification, and affordability for beginners. Their liquidity and historic value make them appealing during economic uncertainty.

Will silver be worth more in 10 years?

While no one can predict prices with certainty, many analysts believe silver could rise over the next decade due to growing industrial demand, limited supply, and potential currency devaluation.

Do silver coins hold their value?

Yes, silver coins typically hold their intrinsic value tied to the silver spot price. Popular coins may even carry added numismatic or legal tender value, providing extra long-term resilience.

Is silver a good 5 year investment?

Silver can be a strong 5-year investment, especially in periods of inflation or market volatility. Its industrial demand and undervalued position compared to gold give it room for growth.

What is the downside of buying silver?

Downsides include price volatility, physical storage needs, dealer premiums, and possible VAT in some regions. Silver may underperform in strong economic times compared to stocks or other assets.

Is it better to own silver coins or bars?

Coins are better for liquidity, recognizability, and potential tax perks. Bars usually have lower premiums, making them cost-effective for large investments. The best choice depends on your goals.

What is the cheapest way to buy silver in the UK?

Buying silver bars or coins from a reputable bullion dealer offering low premiums and bulk discounts is usually cheapest. Look for dealers that offer VAT-free storage options to save more.

Why will silver skyrocket?

Silver may surge due to rising industrial use, limited new supply, increasing investment demand, and its historical undervaluation compared to gold, especially if the gold/silver ratio begins to normalize.

How much silver should I own?

A common guideline is to allocate 5–10% of your investment portfolio to precious metals, with silver making up a portion of that based on your risk tolerance and goals.