What are the Benefits of Buying Silver Bars?

Benefits of Buying Silver Bars

Benefits of purchasing Silver Bars

Investors often turn to silver when making an entry into the precious metals market. Well, one of the reasons that many people prefer silver at the start of their investment journey, is simply because of the gap in gold and silver prices. This is officially known as the silver-gold ratio. Of course, gold has always been more expensive than silver and in recent years, silver was 85 times cheaper than gold.

Now, in 2020, we are on the brink of another global financial crisis. Over the last few years, several geopolitical factors have pushed the global economy to the edge. As a result, investors have turned to gold to hedge their risks and the spot price of gold has risen to more than US$ 1700 per ounce. Therefore, in March 2020, silver became 125 times cheaper than gold. The ratio has now fallen slightly to 113:1. This is quite literally a ‘silver lining’ for investors who want to buy the white metal.

Benefits of Buying Silver Bars
Large silver bars provide better value for money

Why should you invest in silver bars?

More silver for your money

The primary benefit of buying silver bars is the lower cost per gram when compared to smaller silver coins. Silver bars can be bought in large sizes such as 5kg, and yet still be affordable due to silver’s low price. Silver bars have lower production costs, which results in cheaper prices per gram. When buying a bar, you can, therefore, acquire a larger volume of silver for the money you invest. Silver bars are abundantly available in the market and the common denominations are 1 kg and 5 kg. The silver market is eventually expected to rise due to escalating industrial demand. So, investing in bars provides you with an opportunity to lock in great value and book profits in the future.

Insider's Guide to gold and silver

Convenience of storage

Storage of silver bars is also easier due to their convenient size they can be stacked. If you buy silver bars from a reputed dealer, in all probabilities, you can also opt for a storage solution. Many dealers will store your silver for you in secure vaults. If you choose to receive your purchase at your own home, storing bars inside your home vault is easy as the bars are rectangular and occupies less space.

Tax efficiency

Many investors prefer to purchase coins since UK silver coins have a face value, which makes them legal tender. Therefore, they are Capital Gains Tax (CGT) exempt. Silver bars are not legal tender, which implies that CGT would apply to profits that you make at the time of selling.  Silver bars can also be bought without paying VAT. When you purchase bars from Physical Gold, they are routed via a European location, which qualifies them for VAT exemption. One such product is 5 kg Fiji silver bar. The Fiji silver bar does have a face value but it would only be CGT if you reside in Fiji! However, silver bars can be completely tax free if they’re sold strategically. Selling some before the tax year end and some after, can ensure that the annual CGT allowance isn’t breached, so no tax applies.

Get in touch with Physical Gold to buy silver bars

Physical Gold is a highly reputed precious metals broker with a team of silver experts. You can call physical gold on (020) 7060 9992 to discuss the most appropriate buying opportunities in silver bars. Likewise, you can also contact the team online and discuss everything related to your silver purchases and build a strong and robust portfolio.


Image Credit: Wikimedia Commons


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