As well as gold, why not consider silver investing with Physical Gold Limited and view products in our silver shop. Whilst the concept of investing in gold may be familiar, even to those who have never done it, silver investing through reputed silver dealers remains slightly more marginalised and outside of the thought process of many investors. However, that situation only makes this investment more attractive for the savvy investor.
With a lower price point than gold, silver can be more attractive to the casual investor, whilst also allowing the experienced investor to further diversify their portfolio. It's reassuring to know that you can silver investment is quick and easy in the modern trading environment.
Silver has almost always been considered a recognisable store of wealth, evolving to its current status as the most exciting commodity in which to invest. Whilst pure silver is rarely used as currency now, there is the odd exception. The US state of Utah, for example, still accepts silver as legal tender, to be used in the payment of 'all debts'!
However, these days, it is more commonly used as a traditional commodity and as a natural resource, which can be used in various applications. Around 40% of silver is used for various industrial purposes. Due to its antibacterial properties, the use of silver in medical and cosmetic applications has also grown in recent years.
Like other commodities, the key driver of the silver price is the ever-changing relationship between supply and demand. Unlike gold, however, the volume held on the planet, and available to purchase, is generally accepted to be diminishing.
This is due to the fact that numerous industrial applications of silver, including photographic supplies, can only use the silver involved once. Coupled with the increasing industrial use of silver, the situation creates a landscape in which silver demand will grow, whilst supply diminishes.
As a result, silver investing is widely acknowledged as one with an almost guaranteed profit projection.
Unlike gold, silver investing is not inherently Capital Gains Tax (CGT) or VAT free. However, through a properly structured purchase, it is possible to invest without incurring undue taxation.
Buying Britannia silver coins, for example, avoids CGT as they're classed as legal tender. And due to our purchasing policy, which takes legal advantage of EU tax laws via our unique and exclusive sources, there is also no UK VAT to pay. Our silver bars, when purchased and stored through us, are held offshore in the Channel Islands, making them exempt from the 20% VAT charge.
Learn more about how you can be tax efficient while investing with our 'All you need to know' VAT guide.
Silver offers many alternative benefits to gold. Whilst providing a hedge to paper assets, it also provides further diversification if you already own gold.
A silver investment is far more affordable than gold, which makes it a more accessible ption as a valuable hedge. Traditionally silver has been around 15 times cheaper than gold but the gap between the two has widened dramatically in recent years, prompting many experts to predict a far greater profit potential than gold.
On the other hand, silver is becoming increasingly scarce and production levels are dropping globally. For example, Peru, a leading producer of silver globally, has published warnings that their production levels have dropped significantly. The governments state that supply has dropped significantly in Cajamarca, the largest producing region in the country. The government report states that the output of from mines has dropped as much as 12%. This is likely to have a significant impact on the silver spot price and we are soon likely to witness a steady increase in silver prices. Therefore, now looks like a good time to invest in silver and hold on to the investments over the long term to gain from the price differential. As discussed earlier, with the gold-silver price parity at 85:1, silver is a great buy without having to invest a lot of money. There are plenty of options as well from VAT free silver bars to silver bullion, as well as valuable collectable coins of numismatic interest.
Overall, the relative low-level price point, opportunity for profit and further diversification of your investment portfolio make silver worth investing in. The buying options give investors a good choice in liquidity and can be very divisible should you need to.
You can download our guide to 'Investing in Gold and Silver' to find out more about the benefits of diversifying your portfolio to include physical precious metals. At Physical Gold, our investment experts as silver dealers specialise in advising clients just like you on how to invest in precious metals. Our silver investment experts can guide you on how to buy silver and where you can get the best deals, this is the role of silver dealers. It's also worth knowing more about buying silver bullion if you're just interested in buying and holding silver investments. On the other hand, if you're interested in buying collectable coins that have numismatist value, that's an entirely different subject. In addition to the guide we spoke about earlier, the 'insights' section on our website has a great knowledge base, with a number of articles, including our FAQs. Also, visit our silver shop to understand the product ranges available.