Understanding silver premiums
The price of a physical silver coin or bar is normally higher than the underlying value of the silver it contains. The difference is known as the premium.
Premiums reflect factors including manufacturing, distribution, product size, availability and market demand.
Larger silver bars will generally have lower premiums per gram than smaller coins, while Best Value and pre-owned products may provide opportunities to acquire investment silver at more competitive premiums.
When comparing silver products, it is therefore useful to consider the total price relative to the amount of silver you are buying, rather than looking only at the price of an individual product.
VAT and Capital Gains Tax on silver
The tax treatment of silver is an important difference between buying physical silver and investment gold in the UK.
Physical silver coins and bars purchased for delivery in the UK are generally subject to 20% VAT. This differs from qualifying investment gold, which is VAT-exempt. Physical Gold’s previous VAT-free silver arrangement ended following Brexit. (Physical Gold)
Capital Gains Tax treatment depends on the product. British legal-tender silver coins, including Silver Britannias, are exempt from CGT for UK residents. Silver bars and many overseas silver coins do not benefit from the same exemption.
Tax treatment can therefore be an important consideration when deciding between silver coins and silver bars. + Read more
Silver prices
The value of physical silver is closely linked to the underlying silver spot price, together with the premium applicable to the particular coin or bar.
Silver prices can fluctuate significantly, so investors may wish to consider both the current spot price and the premium when comparing products.
You can view the live silver price in pounds sterling and track changes in the price of silver over time.
Delivery and secure storage
Silver purchased from Physical Gold can be delivered using our free, fully insured UK delivery service, with orders securely and discreetly packaged.
Alternatively, customers who would prefer not to keep their silver at home can choose specialist secure vault storage.
Storage can be particularly relevant for larger silver holdings because silver occupies considerably more physical space than an equivalent-value holding of gold.
Find out more about silver delivery and secure storage.
Why buy silver from Physical Gold?
Physical Gold is a specialist precious-metals dealer based in London’s Hatton Garden. We offer a range of physical silver including British and international bullion coins, Silver Britannias, silver bars and Best Value products.
Our team can help if you have questions about choosing between silver coins and bars, premiums, tax treatment, delivery or storage.
For assistance, call 020 7060 9992 or email info@physicalgold.com.
