Investing in Silver

As well as gold, you can also invest in silver with Physical Gold Limited. Whilst the concept of investing in gold may be something that’s familiar, even to those who have never done it, silver investing remains slightly more marginalised and outside of the thought process of many investors. silver investmentHowever, that situation only makes silver 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. As with gold, you can invest in silver quickly and easily in the modern trading environment.


Read our essential 7 step checklist before you invest in silver


Over the last five years, investors have slowly begun to realise the potential benefits but retail investment is still far behind that of the gold markets. The result is an undervalued market with great potential for profit. Learn more about the growing trend for silver stacking in our revealing blog.

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, silver 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 gold and other commodities, the key driver of the silver price is the ever-changing relationship between supply and demand. Unlike gold, however, the volume of silver held on the planet, and available to purchase, is generally accepted to be diminishing.

This is due to the fact that several 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, the decision to invest in silver is widely acknowledged as one with an almost guaranteed profit projection.

Unlike gold, silver is not inherently Capital Gains Tax (CGT) or VAT free. However, through a properly structured purchase, it is possible to invest in silver 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 with Physical Gold, 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 in silver with our ‘All you need to know’ VAT guide.

silver investment
Investment in silver bars is a stable and balanced investment option

Silver offers many alternative benefits to gold. Whilst providing a hedge to paper assets, silver also provides further diversification if you already own gold.

Silver is far more affordable than gold, which makes it a more accessible option 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.

Here’s the exciting part…

Investment experts believe that 2018 could be the year for silver. The current spot price of silver has been hovering around the $16.58 mark for a troy ounce. However, experts believe that it could well touch $20 soon. This increase in price is expected to take place due to the increased demand for silver globally, primarily due to industrial demand. The electric car industry, solar energy industry, and electronics component manufacturers all use silver heavily in their operations.

On the other hand, silver is becoming increasingly scarce and production levels are dropping globally. For example, Peru, a leading manufacturer of silver globally, has published warnings that their silver production levels have dropped significantly. The governments state that supply of silver has dropped significantly in Cajamarca, the largest silver producing region in the country. The government report states that the output of silver from mines has dropped as much as 12%. This is likely to have a significant impact on spot prices of silver across the world, and we are soon likely to witness a steady increase in silver prices. Therefore, now could be 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 75:1, 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 collectible coins of numismatic interest.

Overall, the relative low-level price point, opportunity for profit and further diversification of your investment portfolio makes silver worth investing in. The buying options for silver give investors a good choice in liquidity and can be very divisible should you need to.

silver investment
The output from silver mines across the world has been steadily declining

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 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. It’s also worth knowing more about buying silver bullion if you’re just interested in buying and holding silver as an investment. On the other hand, if you’re interested in buying collectible 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 gold and silver FAQs.

silver investment
VAT free silver coins are another great investment option

Individual purchase or sales

In much the same way as gold, you can invest in silver in a variety of forms including silver coins or silver bars. Both types offer a range of denominations and you can add silver to your investing portfolio from as little as £100 with our range of silver coins. We offer a good range of collectible, limited edition, rare and foreign silver coins. And with the benefits of some silver coins being exempt from capital gains taxes, there is even more incentive to invest in silver.

Buying VAT Free Silver Coins

While silver coins attract 20% VAT in the UK if delivery is taken, we’ve come up with an exclusive solution to save you that tax burden and improve the value of your silver investment. Due to all the silver coins we offer having a face value, and the fact that we ensure our supply chain triggers the EU tax treaty, we can now deliver silver coins to your door without charging VAT.

So which coins qualify?

In order to meet the requirements, we cannot offer silver rounds as they fail to meet the criteria of having a face value. The good news is that the coins which do qualify are all produced by the world’s top manufacturers including The Royal Mint, US Mint and Austrian Mint. We offer a range of silver coins to meet various objectives and requirements. For pure outright price, the Silver Britannia and Austrian Philharmonic are unbeatable as they’re mass produced for the lowest possible cost. For those seeking limited edition coins, we provide access to fantastic Royal Mint issues such as the Lunar and Queen’s Beasts Series. These are a little more to purchase, but to their collectibility, relative rarity and global desirability, will no doubt rise in value quicker and command a premium in the future. We also cater for the need to have different size coins in a portfolio. Coins vary between 1oz, 2oz, and huge 1kg varieties!

What are the other benefits of the coins?

Apart from the incredible VAT saving, purchasing any of the British coins (from the Royal Mint) also means you won’t pay any tax upon sale. As legal tender in the UK, British residents cannot be taxed on the sale of legal currency, so all these coins enjoy Capital Gains Tax free status.

With the future impossible to predict, especially with volatile and complex markets, the ability to liquidate part of your silver portfolio at any time is a huge advanatge. By their very nature, the coins are smaller than silver bars, providing the investor with many pieces rather than one or two huge bars of silver. This means a handful of coins can be sold if needed rather than having to sell ‘all or nothing’. With the coins being very desirable, its incredibly easy to sell your silver so you can be assured of liquidity whenever you need.

Buying VAT Free Silver Bars

silver investment

However, the relative value of silver coins vs silver bars is better in bar form as coins attract a greater premium due to their high production costs. Investors looking to gain the most profit and appreciation from their silver will be able to purchase a greater quantity of silver in bar form than the equivalent cost of buying coins.

Silver Bars for storage offshore

Silver bars don’t have a face value so storing your silver bars offshore is a method we offer to own silver in bulk without paying the 20% VAT.

The minimum purchase price for our silver bar product offering is currently £5,000 and is made up of various sizes of bar from 100oz to 1kg depending on the prevailing market prices. This solution appeals to those seeking to buy at low prices in larger quantity. It also provides the ease and peace of mind that your silver is stored and insured in professional vaults.

New for 2018 – Now you can take delivery of silver bars VAT-Free

In the same way that customers like to purchase our VAT-Free silver coins and receive them at home to touch and feel, many enquired whether we could offer the same service for silver bars. As usual, you didn’t want to be defeated by rules, so we came up with another solution! We’ve now sourced silver bars with a face value too! We like to call this range of silver bars ‘coin bars’ as they enjoy some charateristics of both silver formats. We sell VAT-Free silver bars for delivery in 4 different sizes to suit your needs. Just like our VAT-Free silver coins, we ensure these special bars are sourced so that VAT isn’t applicable.

Once you’ve decided on the amount and type of silver you wish to buy, your silver can be delivered to your door, or held in our secure facility on your behalf (silver Bars for storage product). This option is the preferred choice for many of our clients as the size of bullion you get for your money is greater than the equivalent in gold. Our LBMA facilities are fully insured by Lloyds of London and also provides a guarantee as to the provenance of your investment when it comes to resale. Secure and safe storage can also avoid accidental damage to the condition of your investment which can also affect the resale value.

There’s no commission on silver purchases and we provide a buyback guarantee. To find out more about your options for tax free and VAT free silver, visit our dedicated silver investing page.

Buy from Physical Gold in confidence

Also, it’s worth knowing that any product you buy from us comes with a certificate of authenticity and a buyback guarantee.  This ensures that you can buy from us with confidence, knowing that we would always deliver the best silver products that money can buy. All the products we stock, including bars, bullion, and collectible coins are sourced from manufacturing companies or directly from the mints themselves. We enjoy good relationships with dealers in the industry, and we also procure our products from these dealers after we have checked out their credibility and reputation. All the gold and silver that we purchase from the general public is rigorously tested by our team of numismatics experts and accepted only when the items are certified as genuine and compliant to our stringent quality standards.

Reduced risks with silver and gold investments

Another thing that investors love about us is that we deal only with physical gold and silver, indemnifying investors from exposure to the marketplace and counterparty risks, which come with exchange-traded funds (ETFs), paper gold or other financial instruments that invest in precious metals. We believe that investments in real gold and silver are far more stable and give investors an opportunity to create a strong and balanced wealth portfolio. Often investors do not want to store their assets in their own homes, for obvious security reasons. We are able to provide our buyers with safe and secure storage in our LBMA approved storage vaults. In the event any client would like to take delivery at a particular location, we despatch the products through a 100% insured delivery service, ensuring complete peace of mind for the buyer.

Call Physical Gold to discuss investments in Silver

Call us on 020 7060 9992 to speak to a member of our investment team or email us via our website, and a member of our team will be in touch with you right away. We are a registered member of the British Numismatic Association (BNTA), which means that we always adhere to their strict code of conduct and ethics when it comes to dealing with customers at all times. We are always keen to advise silver investors like yourself, so call today to speak to a member of our team.

Image credits: Sprott Money, Wikimedia Commons and Pixabay

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silver investment