Buying Gold and Silver Bullion
Gold and silver bullion commonly refer to bars rather than bullion finish coins. Precious metals merchants generally buy and sell both metals so it’s possible to buy gold and silver from the same place. There are certain distinct advantages to buying bullion. The most important advantage is the elimination of counterparty risk and taking control of one’s wealth. Counterparty risk refers to the risk associated with the promise of delivery from a third party. If you invest in gold company stocks, paper gold or other gold instruments, you open yourself up to these risks. Therefore, buying gold and silver bullion can be an excellent strategy to minimise risks and maximise returns.
Click here to download the FREE Insider’s Guide to Buying Gold and Silver Bullion
Knowing the spot price of gold and silver
The first step in purchasing gold and silver bullion is to know the spot price and how it works. Nowadays, it’s very easy to find out the prevailing spot prices of these precious metals. Most reputed online dealers and regulatory bodies like the LBMA display the spot price on their website. Since the spot price is a dynamically changing number, it will be displayed as a ticker. It’s important to understand that you will never buy gold or silver bullion at the exact spot price. When buying, you would likely pay a small premium, over and above the spot price. Similarly, when selling, the price you achieve will be slightly below the spot price. Researching the spot prices and knowing about the market is an essential first step to buy gold and silver bullion.
Buying bullion coins can generate healthy returns
Getting to know a reputed dealer
Another important step in making the right investments in gold and silver is to go through a reputed dealer. Firstly, a high-street gold seller will not have a wide choice of products available to purchase. Secondly, making high-value purchases on the high street is usually a risky business. Check out the company’s track record and reviews before placing an order online. It may be worth calling them first to check their customer service. Larger bullion will be better value, but divisibility should also be a consideration.
Gold bullion bars carry lower production costs
At Physical Gold, every product we sell comes with a buyback guarantee. This assures customers that the gold bullion they buy from us is certified and genuine. This also makes a difference to buyers, as they can sell off their investments easily through the same dealer. It’s important to do your own research when selecting a dealer so that you can pick the right one.
Dangers of buying from Mints
Another way to buy gold and silver coins is to buy it directly from the Royal Mint. If you choose to buy non-UK bullion, there are other reputed mints in the world, like the Perth Mint in Australia, from where you may be able to purchase your bullion online through their websites. However, you may end up paying more for packaging and processing costs. Many reputed mints will also try to sell you proof coins. These are more polished and better looking and attract higher prices due to their finish. However, you must bear in mind that the gold and silver content remains the same. So, you are unlikely to receive a higher price at the time of selling, simply because they are proof coins. If your objective is to maximise your gains, you may be better off picking the right bargains from the secondary market through a dealer.
Get in touch with us to plan your gold and silver bullion investments
The economic crisis of the post-pandemic era has already started unfolding through the first half of 2020. Many investors are moving to precious metals in order to hedge their risks. If you are thinking of buying bullion, call us directly on (020) 7060 9992, to discuss your investments. We are certain you can benefit from the right advice. You may also reach our investment team through our website.
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Proof silver coins as an investment
Investing in silver coins
Silver coins are a popular choice for collectors and investors alike. As many silver coins are legal tender in the UK, they provide an opportunity to invest, without having to carry the burden of Capital Gains Tax (CGT). However, when investing in silver coins, one needs to make the right choice. Silver coins are available as proof sets, bullion coins and rare/ collectable coins.
These US Mint proof coins in silver are great for collectors
What are silver proof coins?
Proof coins were originally produced before the actual issue of a coin. They were used for securing approvals from the Ministry of Finance and the administration of the mint. Checking the proof coins is also a method used for verification of the dies used during the production process. Finally, they were retained for archival. Proof coins are usually produced by polishing the dies. This results in a high-quality finish, with a polished look and feel and sharp edges and design. The polished areas of the coin take on an almost mirror-like finish, especially in silver coins. Additionally, the dies used for production are often chemically treated to create a frosty appearance in some areas of the coin.
FREE Guide. Click here to download The Insiders Guide to Gold & Silver Investment
The rising popularity of proof coins
Due to their high-quality finish and attractiveness, silver proof coins have become extremely popular over the years and enjoys healthy demand from the general public. As a result of this, the Royal Mint has been issuing limited edition sets of proof coins. Of course, these coins can be bought at hefty premiums and are usually purchased by numismatists.
Silver proof coins as an investment
If an investment is a primary focus, then buying bullion coins is a better bet. Bullion coins finished to brilliant uncirculated finish are cheaper per gram than a silver proof coin. Most silver dealers will not pay you the same premium when you come to sell the proof silver coin. Proof coins are better suited to collectors or as presents.
The premiums you would pay for buying a proof coin set is more or less the same as that of a commemorative issue. One needs to bear in mind that the higher price being charged for a proof coin is simply on account of production costs and limited availability. This does not change the price of the silver contained within the coin. Bullion coins, on the other hand, are freely available with low premiums. As an investor, you can secure great deals from dealers on bulk purchases of bullion coins. So, if you are buying silver coins as an investment, steer clear of buying silver proof coin sets. Buy current issues of silver bullion coins like the silver Britannia and you can land yourself a much better deal.
Call our silver investment team to discuss your silver coin purchases
Our investment experts offer you free and impartial advice on buying silver coins and bars (such as this 1KG bar). By connecting with the Physical Gold team, you can stay abreast of the latest deals and find out everything you need to know about buying silver coins. Call us today on (020) 7060 9992 or contact us online to speak to a member of the team.
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**Update 21 May 2020
The supply chain is improving each week as we see the gradual return of products into stock.
Mints are still operating on a reduced capacity basis so stock levels won’t return to normal in the immediate future.We’ll do our best to keep the availability up to date on the website.
Delivery times are longer than usual on many products, although some are available for immediate shipping. We’ve tried to indicate time estimates on the most popular products to provide a guideline. Please bear with us. Our reduced team are shipping large numbers of orders daily and expected deliveries aren’t set in stone.
Smaller gold bars (5-20g) are being delayed as Mints are prioritizing production of larger size bars due to the more intricate production requirements of the small wafers. Please be assured that you still lock your price in at the point of placing your order, regardless of delivery times.
**Update 28 Apr 2020 Deliveries Resumed
I’m writing to provide you with an update on deliveries for both outstanding orders and new ones.
We began the process of resuming deliveries on 27th April after careful restructuring to comply with Covid-19 distancing rules and to protect our staff.
We’d like to thank our customers for their incredible patience, support and understanding during this period. We’re glad to say that if you’ve place an order, your coin or bar order will be on its way to you soon.
Our team are working tirelessly to get through the huge backlog from the past 2 months. Please bear in mind that we’re working at a reduced capacity so this process will take some time.
New supply is now starting to filter through, but at a reduced rate, so products should gradually start to come back into stock over the coming weeks. If you’re keen to buy products currently out of stock, please click into the product, click ‘Notify me when back in stock’ and enter your email. This provides the best chance of purchasing highly sought after items like silver bars.
Due to staffing levels and volume, we’re unable to confirm individually when orders will be shipped, but rest assured, you’ll receive email notification once your order has been despatched. We’ll work through orders by date received.
Please try to refrain from contacting us for despatch information as this will slow the mammoth task ahead.
– Orders placed from 20th Mar during deferred delivery period
These orders have already begun to be despatched and we expect all orders to be cleared within 4 weeks.
– New orders
We aim to despatch any new orders within 2-4 weeks. As usual, your price will be locked in at the point of ordering and honoured.
We’ll do our utmost to meet these time estimates, but as with all things Covid, we’re not entirely sure what the near future holds, so we’ll continue to monitor the situation.
Thank you again for your patience and support.
—————————————————————————————————————
**Update 23 Mar 2020
Any orders now placed on the site will not be despatched until we resume our regular shipping service. We cannot provide a timeframe for when this will be. Your price will be locked in and we guarantee delievry of products, but only when the system is able to restart.
As normal there is no statutory right to cancel an order once placed under the Financial Services (Distance Marketing) Regulations 2004. This is because the goods we supply are dependent on fluctuations in financial markets.
In stock items
You will be able to place an order for items classed as ‘In stock’ during this period. This will lock in your price and secure your allocation. You can select either storage or delivery, however, delivery will be on a deferred basis, once we’re able to resume normal activity.
*Certain items including gold bars will only show as in stock Mon-Fri between 8am and 5pm due to severe market volatility*
Out of stock items
Click on the button ‘Notify me when back in stock’ to receive an immediate automated email notification once stock come back in to be the first to secure your order.
16 Mar 2020
Business & Delivery Update
At this unprecedented time, we’re currently experiencing record demand for gold and silver products at Physical Gold.
Record numbers of orders are impacting our ususal business service and speed at which orders can be despatched.
Our team are working hard to manage incoming calls, orders and stocks, so we applologise for any delays in answering your queries or deliveries.
Supply
The Covid-19 virus is causing disruption and delays to our supply chain, impacting our ability to replenish stocks in a timely manner. All major mints and producers are also suffering disruption, which when combined with record demand, is leading to many products being temporarily out of stock.
We are doing everything we can to replenish stock quickly, but some items may not be supplied for an extended period.
Deliveries
Silver deliveries are currently experiencing a delay of approximately 3 weeks. Rest assured, once an order is placed, your price and supply is locked in and metals secured.
Gold deliveries are shorter, with an estime of 3-7 days.
We appreciate your support and custom during these testing times.
Buying gold and silver
Gold and silver are the go-to precious metals for investors building their portfolios. The two metals have different attributes and prices in the market. If you’re an investor making your initial foray into the precious metals market, silver could be an excellent choice. This is because the white metal is currently more than 85 times cheaper than gold. So, affordability becomes a key factor.
Silver – a great opportunity
It’s also important to note that silver prices have a degree of volatility. But there are speculations that silver is destined to rise over the next few years. According to the experts, this is likely to happen simply because of the growing demand for silver in numerous industries and dwindling supplies. This can eventually cause a great spike in silver prices.
Gold delivers stability and value
Gold has historically been a precious metal that has stoically delivered good returns. Of course, it is considered to be a safe haven for investors in times of economic crisis. As international capital markets implode, the price of gold has already crossed $1600 per ounce. Even at these high prices, several investors are choosing to pull their money out of capital markets and invest in gold. But, how can one buy these precious metals safely?
Safety considerations
There are 2 main safety considerations when buying gold and silver. Firstly, it’s a risk to ensure the gold and silver are authentic, of high quality and priced correctly. Buying gold and silver from a reputable precious metals dealer will safeguard against this. Next, there’s a risk that you could be targeted for robbery if you take possession of the gold or silver. Either opting for insured delivery to your home or professional vaulting services will protect from this.
Investors should always buy gold coins from a reputed dealer
Authenticity can be ascertained in many ways. If you are investing in gold bars, there are a few steps that you can take to ensure that the gold is genuine. Gold bars will always carry a stamp from the refinery, which can be found engraved on the face of the bar. All genuine bars will also carry a number that denotes its purity. For example, if the bar has been manufactured with 24-carat gold that has 99.9% purity, the bar will display the purity number as 999.9. But, many of these features can also be duplicated by criminals. So, it’s important to purchase your gold from a reputed dealer who offers documentation to prove that gold is genuine and also has a buyback scheme.
Safe storage
If you choose to accept delivery of your gold at home and intend to store it on the premises, make sure you get a purpose-built home safe. These can be installed in your home and concealed in a way that makes it difficult for robbers to find it. On the other hand, if you choose to store your gold with your dealer, always ensure that your gold is being held securely in an LBMA approved vault. The dealer should provide you certificates that name you as the owner. Additionally, your gold should be segregated and stored.
Download the FREE Insider’s Guide to Tax Free Gold & Silver Investment. Click Here
More steps to ensure safe buying
There are a few more steps that you can take to protect yourself. Avoid buying from online auction sites like eBay. There is no way to confirm whether the precious metals being sold are genuine. Never buy your silver or gold from individuals or dealers, without checking their reputation first. A list of registered precious metal traders can be found on the BNTA website.
Call Physical Gold to buy precious metals safely
A hassle-free way to ensure that the gold and silver you’re buying is genuine is to call the Physical Gold team of investment experts. You can reach them on (020) 7060 9992 or contact us online. You can rest assured that you’re buying genuine products at all times.
Image Credit: 41330
Investors have always turned to gold and silver when it comes to precious metal investments, particularly in times of geo-political tension. Of course, gold has historically been the go-to asset class for precious metal investors. However, silver has become incredibly popular in recent years, in anticipation of expected price rises. But, what are the considerations that one needs to take when buying gold or silver?
Setting investment objectives
Depending on your objectives and investment amount, you’re usually best buying physical gold and silver coins as opposed to bars. These can be bought online from specialist precious metals dealers. Check out www.bnta.net for reliable brokers. Buying more coins at once will provide quantity discounts while maintaining divisibility. Infact, divisibility is one of the most important considerations when making investments in precious metals. Gold and silver bars can be great value for money, simply due to lower manufacturing costs.
Click here to download the FREE 7 step Buying Guide cheatsheet.
However, when selling, a large bar can prove detrimental to your investment objectives. A bar can be sold only once, at a single price point. However, coins offer the possibility of spreading your investments. So, it is important to think ahead when actually making your investments.
Silver coins are becoming increasingly attractive to investors
Identifying a reliable broker
As stated earlier, the best way to purchase gold and silver is to go through a reliable broker. An online broker would be able to give you a wider variety of choices when it comes to both bars and coins. Of course, the first step is to check whether the broker is registered with a regulatory body like the BNTA. However, there are a few more things to consider before doing business with the broker. Ideally, you should be able to get a guaranteed buyback scheme from most reliable brokers. They should also be open to discussing your investment plans and offering free advice.
Discussing your investment objectives
Once the broker has been identified, make it a point to build your investment plan, using advice from the broker. If you are keen on purchasing particular gold coins and silver coins, you should let your broker know. That way, you would have a better chance of getting to know in advance when purchasing opportunities appear in the market. Ensure that your broker adds you on their mailing list. Doing this is an essential step to becoming a smart buyer as you would benefit from advanced notification of any good investment opportunities.
Stick to your key considerations when buying
It is important to remain guided at all times by the key fundamentals of building a portfolio, such as balance, liquidity and divisibility. Tax efficiency may also be an important consideration for you. UK coins are free from Capital Gains Tax. This is because they are legal tender in the UK. When buying coins, always ensure that you buy gold and silver coins with low premiums. Most dealers will offer you good discounts when you buy in bulk. Never buy obscure coins as they are hard to sell off later on. The Britannia and the Sovereign are possibly two of your best options when it comes to buying coins. If you are interested in coins with numismatic value, you can combine collectability with profits.
Call Physical Gold to find out about the best options in buying gold and silver
Physical Gold is one of the most reputed online precious metal brokers in the UK. It would be beneficial for you to call our advisory team on (020) 7060 9992, before purchasing gold and silver. We can also be contacted online via our website. Call us today.
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The festive gifts of the magi
The Bible contains the famous story of the three gifts of the Magi – gold, frankincense and myrrh (a kind of herbal medicinal extract). These three gifts were bestowed upon the baby Jesus – gold being the symbol of kingship on Earth. Precious metals like gold and silver have always been an integral part of the festive spirit. So, what does Christmas 2019 look like for those who wish to invest in these precious commodities?
Read the Insiders Guide to buying gold. Download the FREE pdf
Silver coins for Christmas
With spot prices of silver expected to perform well in 2020, there’s no better time to invest in this precious metal than Christmas. Whether you’re in the market to buy a gift for a loved one, or simply an investment for the future, you cannot miss the 2020 Silver Britannia. The coin boasts an exquisite design and weighs 31.1g (the minimum order quantity is 5 coins). Another great purchase for Christmas is the 2oz Queen’s Beasts White Lion Silver Coin (2020). There are many great silver coin options for Christmas and many silver coin purchases are Capital Gains Tax free.
Gold coins for Christmas
An even better investment for Christmas if you want to splurge a bit more are gold coins. With gold trading at $1457 per ounce (at the time of writing), it’s an excellent investment opportunity, particularly if you want to hedge against the uncertainty of the current economy, including Brexit. The 2019 Gold Sovereign is an excellent purchase as a gift for someone special. The original sovereign was crafted during the reign of King Henry VII in 1489. This makes it one of the most important coins in British history. The 2019 version features a design by Benedetto Pistrucci on the reverse, which displays the George and Dragon. The obverse features the Queen’s portrait by Jody Clark, as Queen Elizabeth II is now officially Britain’s longest ever reigning monarch. However, the sovereign is by no means the only gold coin available for purchase this Christmas.
Another great gold coin option is the 2020 gold Britannia. This is as per its silver equivalent is a 1oz coin and is highly investable. Another interesting option are the Royal Mint’s Lunar gold coin series, in particular we recommend the recent 2019 Lunar Pig gold coin. Also, weighing in at 1oz, this is the sixth in a series of Chinese New Year coins.
Any of the Queens Beast Series make great investments, with options including the White lion of Mortimer, Yale of Beaufort, Falcon, Dragon, Unicorn and Black Bull.
Take a look at our director’s pick, which is a veritable treasure trove of some of the best gold coins around.
Gold ingots are a timeless Christmas gift for someone special
Other gold purchases for this Christmas
If you’re not a numismatist and coins are just not your thing, there are many other gold and silver options that you can look at, to bring in that festive cheer. The 100g gold bar, made by Swiss refiners Metalor could be just what you’re looking for. Gold investments are VAT free in the UK and that’s yet another reason to put your money in gold this Christmas. Apart from the 100g Metalor, there are some excellent VAT free gold bars to consider when making that all-important Christmas investment this year. All gold bars come with guaranteed purity and certification. This ensures that your investment is well protected over the years to come.
Call us before you buy your gold or silver for Christmas
We recommend that you get in touch before you make that all-important Christmas purchase this year. Our experts are well placed to guide you in making the right investment decision this Christmas. We are keen to bring festive joy to your home in 2019, as well as help you protect your investment for long, thereafter. Call us on 020 7060 9992 and one of our advisors would be happy to help you. Have a Merry Christmas and a wonderful New Year.
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Silver quotations
Silver has been making waves in the precious metals segment with renewed investor interest. Speculation is rife that the price of the white metal could rise significantly. Many investors have therefore resorted to investing in silver coins and silver bars (such as 1KG). However, in this article, we move away from the market mechanisms of silver and explore 15 popular quotes about silver that can lend a philosophical perspective.
1)
“Our happiness is certainly mixed with the tragedies of life. You have to find the lemonade. You have to find the silver lining in the middle of everything that happens in life.” – Chandra Wilson
American actress Chandra Wilson reflects on life in this quote. She talks about the ups and downs that are experienced by everyone, as a part of life. She says that optimism and positivity are all about finding a silver lining in between those ups and downs. Source: Brainyquote.com
A large silver bar like this can be a great investment
2)
“I wasn’t born with a silver spoon in Beverly Hills, but I was born with a great deal of self-worth.” – Yolanda Hadid
In the statement above, television personality Yolanda Hadid refers to the rich and famous as being born with a silver spoon. However, being rich doesn’t necessarily lead to self-worth. This is the essence of this hard-hitting quote. – Source: 9quotes.com
3)
“The air is of silver and pearl; the night is liquid with moonlight.” – Willa Cather
Willa Cather was an American writer who was born in the 19th century. She describes the beauty of nature in this quote by comparing the air to the soft and smooth texture of the white metal. Source: Pictame.com
4)
“For in the true nature of things, if we rightly consider, every green tree is far more glorious than if it were made of gold and silver.” – Martin Luther
Martin Luther, not to be confused with Martin Luther King, was a German philosopher and key figure in the Protestant Reformation, who lived during the 15th century. In his thoughts above, he exemplifies the beauty of nature. He states that a green tree in its natural state is far more beautiful than a tree made of precious metals. Source: Quotefancy.com
5)
“Gold and silver have always had value, never gone to zero. Can you say the same for stocks and bonds?” – Mark Skousen
The quote from economist Mark Skousen is direct and to the point. He echoes an age-old investor sentiment that precious metals such as gold are a great repository of value that can never be destroyed, as opposed to the value generated by the capital markets. Source: Azquotes.com
6)
“Education is the silver bullet to improve this nation’s standing worldwide…. and our teachers know that.” – Solomon Ortiz
In this case, Ortiz, a former US representative, speaks about America. But, the quote is relevant to all nations in the world. Indeed, education is clearly the most important building block of a nation. Source: Allauthor.com
7)
“Many gold and silver experts will recommend you buy numismatic coins – rare and old coins. If you are not a rare coin expert, I’d encourage you to stay away from them. New
investors often pay too much for rare coins that are not really rare.” – Robert Kiyosaki
Robert Kiyosaki is a financial expert who is famous as an author of the book ‘Rich Dad, Poor Dad’. The above statement reflects practical advice that any new gold coin or silver investor should follow, instead focusing on coins such as Silver Britannia coins. Source: Quotetab.com
8)
“If the people of Sheffield could only receive a tenth part of what their knives sell for by retail in America, Sheffield might pave its streets with silver.” – William Cobbett
An absolute truth! Manufacturers rarely receive even close to the final retail price for the goods they make. This quote goes back to 1830 and talks about how if Sheffield Knife Makers received the full price, they could pave the streets in silver! Source: Inspiringquotes.us
9)
“The Moon is a silver pin-head vast, that holds the heaven’s tent-hangings fast.” – William R. Alger
This poetic line is extracted from a literary work known as ‘The Use of the Moon’, written in 1865 by William Alger. In the quote, the night sky has been referred to as ‘the heaven’s tent-hangings’, and the author visualises the Moon to be a silver pin that holds it all together. Source: Wiseoldsayings.com
10)
“Gold and silver, like other commodities, have an intrinsic value, which is not arbitrary, but is dependent on their scarcity, the quantity of labour bestowed in procuring them, and the value of the capital employed in the mines which produce them.” – David Ricardo
David Ricardo was a classical British economist who lived during the 18th and 19th centuries. Once again, the quote explains the factors that contribute to the intrinsic value of silver. Source: Supanet.com
Silver coins that are legal tender are capital gains tax exempt in the UK
11)
“No lower can a man descend than to interpret his dreams into gold and silver.” – Khalil Gibran
Award-winning author Khalil Gibran talks about the futility of material desires, by saying that if a man only dreams about precious metals and wealth, he can stoop no lower. Source: Quotes.net
12)
“Too many people miss the silver lining, because they’re expecting gold.” – Maurice Setter
Maurice Setter is a former English football player. In the sentence above, he alludes to the recognition of opportunity. He points out that many of us miss a good opportunity, simply because our expectations may be too high. Source: Kathleen J Shields
13)
“Every silver lining has a cloud.” – Mary Kay Ash
This is an interesting reverse quote in many ways. Mary Kay Ash, founder of Mary Kay cosmetics points out that the contrary is also true. Thus, every great opportunity carries some element of risk. Source: thefreedictionary.com
14)
“Genius without education is like silver in the mine.” – Benjamin Franklin
Franklin, who needs no introduction, puts forth his thoughts on the value of education. He says, just like the value of silver can only be realised after mining, a person’s intellect must also be developed through education. Source: Quotationspage.com
15)
“Nobody cares about the bronze or silver medals” – Buzz Aldrin
Here, astronaut Edwin Aldrin is possibly referring to himself as he was the second man on the moon. According to the quote, being first is everything. Source: Allgreatquotes.com
For the best silver advice, call Physical Gold
If you liked our collection of ‘silver’ quotes, please let us know. As a silver investor, you can benefit greatly by speaking to our investment team about the prospects of the white metal in the precious metals segment. Please call Physical Gold on (020) 7060 9992. Alternatively, you can also get in touch with the investment team through our website.
Image Credits: Wikimedia Commons, Feiern1 and Pixabay
Silver Bars or Silver Coins
Investing in silver is the biggest area of growth in the precious metals market, but what is best to invest in, the debate rages on about silver bars versus silver coins. Silver is 85 times cheaper than gold so is accessible to everyone and tempts investors with speculation of huge potential gains.
But what is better for investment? Should you buy silver coins or silver bars?
Today, I’ll take a look at 4 key comparisons between the two to help decide which one suits investment better.
Value
One of the key components of investing is getting the best possible purchase price for your asset in the first place. Certainly, 1oz silver coins are more expensive per gram than larger silver bars like 1kilo and 5 kilo silver bullion. If you’re simply focused on obtaining as much silver for your money as possible, then no doubt, buying big will achieve this. The cost of producing large bars is a far smaller percentage of the overall cost due to its scale and simpler design than coins.
However, coins are fighting back, many of the popular silver bullion coins are now also produced in 10oz and 1 kilo versions too, offering the chance to own silver coins at virtually the same price as silver bars.
Winner: Silver Bars
Divisibility
If you had the choice between buying one silver bar weighing 100 ounces or 100 one-ounce silver coins, then I’d generally recommend the coins for divisibility. Imagine a scenario where you’ve already bought your 100 ounces of silver and the market is moving up quickly.
When you choose to lock in some profit and sell, the large silver bar gives you one chance only. Once you’ve sold, your silver’s gone and you may miss further profits. With the silver coins, you’re able to drip feed the coins away, selling at various points to suit you.
The other scenario is if the financial system really does reach a breaking point. In that case, it would be far more practical to use your 1oz silver coins to barter for bread, milk and petrol than a 100 ounce bar.
Winner: Silver Coins
Storage
Next up is the practicalities of storing your silver investment.
For sure, silver bars are easier to store and take up less space. They’re larger and their rectangular size allows for simple silver stacking.
However, most of the popular 1oz silver investment coins can now be bought in monster boxes. These are specially designed storage boxes, tightly packing 500 coins at a time and permitting easy stacking of these boxes
Winner: Draw
Tax efficiency
The way of avoiding incurring any Capital Gains Tax is to buy and sell UK legal tender silver coins. Common Royal Mint coins such as the silver Britannia, Lunar Series and Queens Beasts range of silver coins are all CGT exempt.
The Royal Mint do not produce silver bars with a face value at present, so selling bars would be taxable. Now, that may not be an issue if your profits are under the tax threshold of around £12,000. But for many, looking to benefit from silver’s price potential, it’s perhaps not a risk worth taking.
Winner: Silver coins
Read our article: The Dos and Don’ts of Buying Silver
Overall – bars or coins – which is the best investment?
So which type of silver investment wins overall? I’d recommend starting your silver investment with silver coins. Sticking to British coins provides good value, divisibility, tax efficiency and the chance to store in monster boxes.
But as you build your silver portfolio, there’s definitely a place for adding silver bars. This can bring the overall purchase cost per gram down by a few per cent and combine well in all areas with the silver coins.
If you found this video helpful, don’t forget we have loads more videos covering all aspects of gold and silver investing. Check them out here.
Invest in Silver Bars and Coins with Physical Gold
We’re the fastest growing dealer of silver coins and bars in the UK. Not only do we have a huge choice, but we also exclusively deliver the silver to your door! Combine this with live pricing and quantity discounts, it’s easy to see why we’re so popular for silver!
If you need advice or guidance about silver bars versus silver coins, or anything else! Then don’t hesitate to call a member of our expert team on 020 7060 9992. Alternatively, engage on our live chat on the website or leave us a message here.
Silver investing now and in the coming years
In this video, we’ll take a look at silver’s prospects for 2024 and beyond. Over the past 5 years, interest in silver has grown exponentially to the point where we now get almost as many silver enquiries as gold.
So is silver a worthwhile investment in 2020 and 21, and what can we expect from it, we examine silver investing in 2022?
I’d like to start by looking at downside risk. The silver price has fallen from around £13 an ounce at the start of 2017, to £12.50/oz the following year, and nearer to £12 an ounce in 2019. Clearly, the prospect of owning a depreciating asset is unappealing.
Downside risk
However, unlike gold, silver’s demand consists predominantly from industrial use. As the world’s most conductive material, silver is used in most electronic components, solar panels, photography and medicines. The digital age is only going to develop over the coming years, creating new electronic demands on silver. The search for alternative energy will lead to increasing silver demand with electric cars and electric solar energy. So with industrial demand rising, downside risk to silver is minimal.
Gold-Silver ratio
It’s also fair to say that the silver price has suffered far worse in recent years than the gold price, with clear suggestions that it’s been oversold. The ratio between the two metals’ prices has widened from a long term average of 47:1 to 70:1 a few years ago, and now an incredible 95:1.
This theme may scare inexperienced investors, but this would suggest a buying opportunity in 2020 for silver. If you can lock in prices when the silver price is so low, your upside becomes magnified. The silver market is far smaller than that of gold, so prices can be more volatile. It also means that the price can move up in percentage terms far quicker and far greater.
Global economy
The silver price could well receive a double boost over the coming years.
As well as the rising industrial demand, there’s plenty of uncertainty in the global economy to boost silver as a safe haven. 2019 and beyond marks a turn in the economic cycle. The middle of 2018 saw property prices begin to fall and global stock markets start to decline from their 9-year bull run. After nearly a decade of rising stock and property prices, the global economy is set for a big correction, especially with interest rates now on the rise. Throw in Brexit and a growing car leasing credit bubble, and safe havens could well become the flavour of the month once again. Gold will likely rise first, with silver following behind. But once silver starts its upward trend, the pace of increase will outstrip that of gold.
Diversify
A lot of investors ask me whether they should buy gold or silver. After all the two metals are quite different. For me, there’s a strong case to own both. Diversification is key in today’s digital globalised economy, so investing in silver and gold is a great way to hedge your hedge!
CGT tax free
By sticking to Silver Britannia coins, any profit you make is also free from Capital Gains Tax!
Silver investing in 2024 with Physical Gold Ltd
So there you have it. 2024 and beyond are set to be exciting years for silver investing. Courage may be needed to enter a market which has fallen in value, but history will tell you, that’s the exact time to stack your claim.
If you feel silver could play a role in your investment portfolio, or you simply want to buy some silver coins or bars, then don’t hesitate to call our team of experts on 020 7060 9992.
I hope you’ve enjoyed today’s video. If so, please check out all 20 videos in the gold & silver investment guide series.
Gold and Silver Investment Jargon
Complicated jargon exists everywhere in life. Within the investment world, jargon can sometimes prevent you from understanding the details of the investment, or cloud key facts.
Some terminology stems from the historical use of words, while others seem convenient for financial advisors to validate their existence to explain these complications.
At Physical Gold, we believe in stripping back jargon to simplify what should really be very straightforward assets – gold and silver.
This video unravels a few select pieces of jargon which crop up time and again. For the full list of investment jargon busting, click here.
1. Bullion
This is one of the most widely used terms in the market but can refer to a number of things. Some people use the term as a blanket expression for non-numismatic gold. So any low-priced gold coins and bars. This tends to be when the price is the focus and suits those wishing to avoid paying premiums for more valuable older coins.
It can also be used to explain a certain type of coin production. Most of the main gold investment coins will be produced to a number of finishes, each with their corresponding price. Bullion finish is the most basic and cheapest finish, so is targeted at the investment market, where quantity and price are the primary focus. In contrast, proof finish coins, are struck 2-3 times when minted and offer a more detailed, albeit expensive finish.
Finally, the term bullion can be used to refer to gold or silver bars. Bullion is used interchangeably with bars and wafers to focus on this area of the market rather than coins.
My recommendation is to ask questions if it’s unclear which of these meanings is being indicated.
2. Alloy, purity, carat
Very simply, alloy denotes the mix of metals within a coin and ties in with a coin’s purity and carat. Investment grade coins will all be of a purity of at least 958 parts gold per 1,000. The terms carat and purity refer to the same thing. A coin of 958 per 1,000 purity is known as being 22 carat, while a coin of at least 995 parts gold or silver are referred to as 24 carat.
Alloys are used to toughen up a coin and minimise scratches. Some of the most common alloys in popular coins such as Sovereigns will be silver and copper.
One of the biggest misconceptions with carats and purity is that 24 carat coins are far better and more valuable than 22 carats. Looking at the Gold and Silver Britannia coin is a useful example.
Up until 2013, the Britannia was produced as a 22 carat coin. While it weighed around 34g in total, the gold or silver content was 31.103g (1oz). Coins produced after 2013 were minted as 24 carat coins. The newer coins still only contain 31.103g of pure precious metal and that is now also their total weight. So in other words, both coin purities still contained exactly 1oz of pure gold or silver.
3. Face Value
While this term is simpler to understand, its implications are crucial to precious metals investors.
When a coin benefits from having a face value, that means that the mint who produced the coin have actually allocated a face value in that country’s currency to the coin. This face value will be shown either on the front or back of the coin. In theory, that means you are legally allowed to walk into a shop in the relevant country and use the gold or silver coin to buy goods up to the face value.
Now, this may sound ridiculous because the face value of a Gold Britannia, for instance, is £100, while the coin’s gold content is worth ten times that. This is where the implications come in useful.
Any coin with a face value cannot be taxed for capital gains for residents of that country. In other words, if a UK investor buys £20,000 of Britannia coins and sells them 5 years later for £50,000, their profit of £30,000 is completely tax free!
4. Segregated
Next up is a term used in the storage of gold and silver. If you choose not to physically hold your coins or bars, then many dealers can offer storage solutions. But beware, not all solutions are the same.
If gold or silver is segregated, it means that it’s legally ring-fenced as yours. That means it isn’t mixed in as a pooled investment with other investors’ gold and crucially cannot be touched by any counterparty.
For investors seeking absolute security and minimal risk, segregated storage is the only way.
5. Premium
This final piece of investment jargon is bandied around when talking about the price of physical gold and silver. Rather than indicating a top end item, it refers to the spread over the gold or silver spot price of various coins and bars.
It’s important to understand that when buying any gold or silver, whether electronic or physical, you will always buy at a premium over the live spot price.
That premium varies according to a few factors.
Firstly, coins and bars trade at a higher premium than electronic gold and silver ETFs as they have to encompass production, design and delivery costs.
Secondly, the type of coin or bar will dictate the level of premium. Brand new mass-produced bullion coins are attainable at lower premiums, then rarer old gold coins.
Finally, quantity plays a large role in the premium. Buying one coin will cost a higher premium than buying 100 coins. Similarly, buying a small 5g gold bar will cost a higher premium than a huge 1kg bar.
Our team are here to make gold and silver simple
So there, you have it, 5 key pieces of jargon busted for you. Any dealer who cannot explain these, shouldn’t be used. Websites should clearly display live prices for various quantities of coins and bars, and each product should have a comprehensive description so you know what you’re buying. If you found this video helpful, be sure to check out 20 of our best video guides.
If you have questions regarding specific gold & silver investment jargon or are seeking guidance on how to invest, then our expert team are here to help. You can either call us on 020 7060 9992, engage on live chat or leave a call back request on our contact us page.