Silver Investment

Whilst the concept of investing in gold may be something that’s familiar, even to those who have never done it, silver investment remains slightly more marginalised and outside of the thought process of many investors.

However, 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.

History of silver

Silver has almost always been considered a recognisable store of wealth, evolving to it’s 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.

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Silver supply and demand

Like gold and other commodities, the key driver of the silver price is the changing

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relationship between supply and demand. Unlike gold, however, the volume of silver held on the planet, and available to purchase, is widely 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, this situation creates a landscape in which silver demand will grow, whilst supply diminishes.

Tax-free silver

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 because we have an exclusive, unique source, there’s also no UK VAT – due to EU tax laws. Our silver bars, when purchased and stored with Physical Gold, are held in the Channel Islands, making them exempt from the 20% VAT charge.

Why invest in silver instead of gold?

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 this ratio has widened dramatically in recent years, prompting many experts to predict a far greater profit potential than gold.

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Your silver investment options

Individual purchase or sales

In much the same way as gold, it can be purchased as silver coins or silver bars. 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. 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 page.

Monthly Saver

If you like the idea of UK tax-free silver coins but have limited funds, our regular, Monthly Saver may provide an alternative option. From as little as £150/month, you can receive silver coins to your door and gradually build a tax-free nest egg, just like an ISA. . This makes silver investment accessible to all, giving you greater flexibility when it comes to growing your silver holding. Read more about the benefits of our regular monthly saver here.

Click here to download our guide to ‘Investing in Gold and Silver’.