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Silver is the new Gold, or is it?

Silver or gold?

One of the keys to great investment is timing and staying ahead of the pack. I receive many enquiries from keen investors asking about the prospects for silver.  Everyone has seen how well gold has performed over the years and many commentators feel that silver has huge upside potential.

I always describe gold as ‘reducing the risk in your life’, while silver is about ‘taking risk’. Obviously with higher risk, comes higher potential reward. Nearly half our customers buy silver, compared to a minority of around 10% a decade ago. These customers feel silver has vast profit potential, so are willing to take the additional risk.

As a purely speculative punt, buying silver may be worth a bet but only as part of a well balanced portfolio. You’d certainly need nerves of steel to put significant funds into silver.  However, dig a little deeper and silver may not live up to being the new gold investment at all.

Here are 7 reasons why buying physical gold is still the best precious metals investment;

  1. There is much less research and analysis available on the silver market as it’s  less developed as an investment market. The more research available, the better chance you have of assessing an asset’s prospect
  2. If you buy gold there is no VAT to pay on the purchase. However, silver is not VAT exempt so you’re 20% down before you’ve even started
  3. The gold market has evolved into a highly competitive and efficient arena. So the bid/offer spread (or difference where a dealer will buy and sell a piece of gold) is relatively tight (perhaps 5-10%). However, with less competition silver spreads can be 3 or 4 times those of gold, so silver needs to rise significantly in price before you break even
  4. Silver is less ’precious’ than gold as there’s more of it in existence! The lack of supply and difficulty in extracting gold provides a huge support to its price. If you have an asset who’s supply could increase significantly, the price of that asset is always exposed to a sharp fall
  5. Due to silver’s lower price per kilo you will literally get more product for your money than with gold. This means that a £50k gold investment can be shipped cheaply and discreetly whereas the equivalent in silver would be heavy and expensive to deliver
  6. Storing silver is also more problematic to gold due to its cheapness. £50k of gold can fit into a tiny safe at home. But £50k of silver needs 70-80 times more space (that’s alot of silver coins!)
  7. With the global economy at its most unstable in history, and the expectation of inflation and a huge post-Covid recession – the Safe Haven tag of gold provides one of the most compelling reasons to buy gold. Silver quite simply is not known as the ultimate safe haven so is less relevant as a portfolio insurance in today’s climate.

So if you want exposure to the silver market it may be better seeking a more efficient method such as mining shares or ETCs. If you still seek the comfort of owning the physical metal itself, then buy gold coins or bullion.

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Are Silver Eagle Coins a Good investment?

The American Silver Eagle is one of the most prestigious coins to be minted in the US. The coin is a relatively new one, having been released in 1986. This makes the first edition of the coin only a year older than the gold Britannia. The US Mint released the silver Eagle with one Troy ounce of silver that has a purity of 999.9. The coin was released with a face value of one dollar.

Interestingly, ever since the American silver Eagle has been released, the designs have never changed. Unlike the silver Britannia, the coin is presented in the same style, look and feel and the only difference from one coin to the other is the respective mint mark, which is found on the reverse of the proof coins. Well, the coin enjoys healthy interest from investors, and we want to find out whether the silver Eagle is worth its salt as an investable coin.

Are Silver Eagle Coins a Good investment?
The American Silver Eagle coin known across the world as a liquid coin.

Divisibility and liquidity

In terms of divisibility, the silver Eagle does not offer much choice. As discussed above, the coin has always been available in the same size, shape, and design. However, there are some variations in its design that can add to the variety of an investor’s silver portfolio. The obverse of the coin features an image of Lady Liberty, created by the designer Adolph A. Weinman. Apart from the famous image of Lady Liberty, the obverse of the coin also features the American national motto – “In God we trust”.

10 commandments

Design options

The reverse of the coin carries the image of the Heraldic Eagle. Right above the head of the bald eagle, there is a cluster of 13 stars, each of which represents one of the original colonies of America, at the time of its founding. The only design change for the American Silver Eagle was in 2021. In the new 2021 design, the bald eagle on the reverse of the coin is featured flying back with its wings spread out. So, this is perhaps the only element of variety that an investor can hope for when investing in the American Eagle. The 2021 design commemorates the 35th anniversary of the coin, and the US Mint has taken this opportunity to refurbish the design of the coin.

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Liquidity

The American Silver Eagle is a famous and well-known coin across the world. This ensures the liquidity of the coin and the coin can be easily cashed in at any point in time, bringing in cash as you need it. Previous editions may command a premium due to increased numismatic interest. American Eagle coins are available in uncirculated, proof, and burnished versions, giving a certain amount of choice to investors. Being a well-known coin, the coin has a good chance of being sold for its value in a short period.

Are Silver Eagle Coins a Good investment?
The obverse of an American Silver Eagle – the year 2000

Silver Eagles can provide a good medium to long term investment and balance to other assets. The 1oz coins afford high flexibility to sell small parts of the silver holding compared to owning huge silver bars. The mass-produced coins are relatively cheap compared to collectors’ coins and their value can rise along with the underlying silver price and age of the coin. Many analysts feel the silver price is very undervalued, suggesting holding silver Eagles will benefit the investor in the long run.

Talk to the coin experts at Physical Gold

One of the country’s most reputed and well-known precious metal dealers is Physical Gold. Our advisors are always happy to discuss your silver coin purchases with you and can offer valuable advice. Get in touch with us on (020) 7060 9992 or simply drop us an email by visiting our website.

 

Image credits: Eric Golub and Wikimedia Commons

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Silver Britannias vs American Eagle

The Silver Britannia

The Royal Mint released the silver Britannia in 1997 as the silver counterpart of its flagship coin, the gold Britannia. The initial edition of the silver Britannia contained 1 ounce of silver with a fineness of 95.8%. All the design elements of the original gold Britannia were replicated in the silver version. By 1999, the silver Britannia had a fineness of silver content upgraded to 99.9%, or 999.9. This move by the Royal Mint made the coin attractive to investors and the demand for the silver Britannia soared.

The launch of the silver Britannia was an important event for the Royal Mint and the award-winning designer, Jody Clark was brought in to design the coin. She ensured that the reverse of the coin displayed the iconic image of Britannia, a testament to the bravery and spirit of the inhabitants of the British Isles during Roman times. It is this unmistakable image, coupled with the portrait of our Queen, Elizabeth II on the obverse of the coin, that makes the silver Britannia, a highly collectable and valuable coin for investors.

Silver Britannias vs American Eagle
The silver Britannia is a highly collectable coin

The American Eagle

The American Eagle is a silver bullion coin minted by the United States Mint and is now considered to be the official silver bullion coin of the country. The coin was first minted in 1986, which is a year earlier than the release of the gold Britannia by the Royal Mint. Like the silver Britannia, the American Eagle is a 1-ounce silver coin, containing one Troy ounce of silver and a face value of a dollar.

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Silver content

The content, weight and purity are certified by the United States Mint and the coin is minted with 24-carat silver, having a purity of 99.9%. Apart from the bullion version, the US Mint also produces a proof version of the coin and an uncirculated version, which is aimed at numismatists and collectors. When we speak about the United States Mint, it does not imply that there is only one manufacturing location, in reality, the American Eagle is usually struck at the Philadelphia Mint, the San Francisco Mint and the Westpoint Mint.

Silver Britannias vs American Eagle
The American Eagle silver coin is available as a bullion coin

Design

The obverse of the American Eagle features a motif called ‘The Walking Liberty’. This theme had been used in previous coins produced by the United States Mint. It also contains the phrase, “In God we trust”, which is visible in many American coins. The reverse of the coin was originally designed by John Mercanti. The reverse portrays an image of a Heraldic Eagle, behind a shield, holding an olive branch. The Great Seal of the United States is also visible above the Eagle, along with 13, five-pointed stars, which represents the colonies.

Comparison of the two coins

Both coins are world-renowned and produced to a number of finishes. The Britannia can be bought slightly cheaper in the UK and has an increased fineness of 999.9 versus the Eagle’s 999.0. Both can be easily sold anywhere in the world. The Britannia is preferred within the UK due to its Capital Gains Tax-free status, whereas the silver Eagle is more popular in the US and Canada.

Talk to Physical Gold for all your silver coin purchases

Physical Gold is one of the country’s most reputed coin dealers and gold and silver merchants. We are registered with the BNTA and our advisors can help you make the right decisions when purchasing silver coins. Call us today on (020) 7060 9992 or drop us an email by visiting the contact page on our website.

 

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Are Silver Britannia Coins a Good investment?

The silver Britannia has won its place in British coinage history as one of the most iconic UK coins to be ever released. The coin was introduced in 1997 and had a fineness of 95.8% in its original issue. The 1-ounce silver coin reflected the design elements of the original gold Britannia, which was introduced by the Royal Mint 10 years earlier. The popularity of the gold Britannia prompted the Royal Mint to start minting a similar coin using silver. Within two years of its release, the fineness of the silver Britannia had been increased to 99.9%. Needless to say, the 24-carat silver coin enjoyed immense popularity amongst collectors and investors alike.

Are Silver Britannia Coins a Good investment?
The image of Britannia used in an earlier British coin

The iconic design

The silver Britannia, like its gold counterpart, features the classic image of Britannia on its reverse. The Britannia icon was possibly conceived as early as Roman times. It is the image of a goddess warrior, carrying a shield and a trident. This classic image is a testament to the spirit and bravery of the people of Britain. The design elements used in the silver Britannia coin was created by the famous designer, Jody Clark. The obverse of the coin features an image of our reigning Queen, Elizabeth II. Since its issue, the coin has seen some changes in design and mintage with different weights and dimensions.

Silver Britannias are the most popular silver investment coin in the UK. They represent very good value as they are mass-produced to bullion finish which keeps production costs low. They are legal tender, so any gains made are also tax-free.

Are Silver Britannia Coins a Good investment?
Investors are keen to invest in silver coins, like this USA silver dollar bullion coin

The value of a silver Britannia for an investor

The value of the coin is dependent on the spot price of silver. As a thumb rule, the coin can fetch a sale value of approximately the 1-ounce silver spot price. Generally, the sale price would be just under the spot price of silver, unless the coin commands a premium due to a collector’s edition. The bullion version of the coin is mass-produced and attracts low premiums. In addition to this, bulk orders of the bullion coin can qualify for attractive discounts, when buying from a reputed dealer. The best part is that the silver Britannia offers investors an incredible opportunity to enter the precious metals market at a lower price point. On the other hand, the gold Britannia is a prohibitively expensive coin to buy.

Insider's Guide to gold and silver

The rising price of silver

One of the reasons that the coin has enjoyed popularity amongst investors is the expectation that silver prices will eventually rise in the future. The use of silver in industrial applications has grown over the years and will continue to rise in the coming years, as electronic cars, solar power solutions and other electronic products continue to dominate the marketplace.

However, the production of silver has dipped over the years. Market experts believe that a price rise is imminent for silver, and investors who purchase silver Britannia coins today can expect to book healthy profits once the price of silver reaches its peak.

The precious metal experts at Physical Gold can advise you on buying silver coins

Physical Gold is one of the country’s most reputed gold and silver dealers, who offer free advice to precious metal investors. Call us on (020) 7060 9992 or drop us an email by visiting our website, and a member of our team will be in touch with you to discuss your silver investments.

 

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Why invest in silver coins?

Investing in silver coins

Silver coins are a great investment choice if you’re seeking potential capital growth and also want a hedge against falling stock markets and banks. The value of coins tends to rise over time, especially when there’s political and economic instability. Silver coins are also exempt from Capital Gains tax. The modest price of the coins enable accessibility to the market for many compared to gold coins (such as Sovereigns and Britannias), and divisibility to sell part of your holding. The silver price can also rise when demand for industrial silver rises, with its predominant use in electronics.

The industrial demand for silver is rising

The white metal is used extensively in the electronics industry, IT, solar panel manufacturing and a host of other industrial processes. On the other hand, the production of silver from mines has greatly reduced over the years. Rising demand and dwindling supplies have fuelled speculations that there may be a huge price in the spot price of silver in the years to come. Many investors have started buying up silver early with an expectation of making profits, once the prices go up.

Why invest in silver coins?

Coins like the silver Dollar do not enjoy tax free status in the UK

Silver to gold price ratio looks enticing

Today, silver is almost a hundred times cheaper than gold. Therefore, it provides investors with easy access to the precious metals market. If you are planning to invest in silver, there could be no better time than the present to take a calculated risk and purchase the white metal. Silver bars and coins can provide you with good investment options if you plan to get in early and wait for the long term to generate good returns. While silver bars allow you to acquire more silver at a cheaper price per gram, silver coins have several distinct advantages.

Variety and purity

Firstly, they are available in a wide variety of sizes. 1-ounce coins are quite common, but now there are larger silver coins of 10 ounces and even up to 1KG. These large coins also offer you the same advantages as buying a silver bar. Secondly, purity is an important consideration. Silver coins with a purity of 95.8% are easily available. However, better options can be found like the Canadian Silver Maple Leaf, which is a coin with 99.9% purity.

Insider's Guide to gold and silver

A vibrant secondary market

Liquidity is also an important consideration when building a precious metals portfolio. Always buy silver coins that are popular and enjoy a strong secondary market. Obscure and rare coins can be difficult to sell later on. Well-known coins with a vibrant resale market include 1-ounce silver coins like the Krugerrand and the silver Britannia.

The silver Britannia is one of the finest silver coins to invest in
The silver Britannia is one of the finest silver coins to invest in

Tax efficiency

Any investment portfolio needs to be tax-friendly. While coins like the Canadian Maple Leaf are a great buy, the profits you make from their sale are taxable. UK silver coins like the silver Britannia, on the other hand, are CGT free, due to their status as legal tender in the country. The silver Britannia, in particular, is a bullion coin and is available in plenty. Therefore, premiums are low, they are CGT exempt and available with good discounts on bulk orders from reputed silver dealers.

Get in touch with Physical Gold to plan your silver portfolio

Physical Gold is one of the most reputed gold and silver dealers in the UK. Our investment experts can help you identify the right silver coins to buy. Give us a call on (020) 7060 9992 or drop us an email and a member of our team will get in touch with you right away.

 

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Are silver coins or bars better?

Investors have found the white metal alluring for some time now. Due to the potential to make significant gains once prices rise, the popularity of silver is gaining ground. The gold-silver ratio has widened considerably and silver is now more than 100 times cheaper than gold. Investment options and silver include bars of varying sizes and a variety of choice in coins.

There are important differences in buying bars and coins. These include considerations of important investment factors like divisibility, value, variety and liquidity. In this article, we will explore these differences and understand whether it is prudent to invest in silver coins or bars.

Are silver coins or bars better?
Large silver bars carry lower production costs

Coins offer distinct advantages

Coins are usually a better bet for investment for a couple of reasons. They offer far better divisibility than owning large silver bars, providing flexibility to sell small amounts. If living in the country of issue, they can also be Capital Gains Tax-free. Bars can be slightly cheaper due to lower production cost, but quantity discounts are achievable when buying lots of coins.

It is interesting to know that silver coins are available in 10 ounces and 1 kg versions. One of the compelling reasons for the popularity of silver bars is that they carry lower production costs. This offers investors the opportunity to acquire more silver for their money. However, large coins are almost similar to investing in bars. Additionally, these coins are tax-efficient if they have a face value.

Insider's Guide to gold and silver

The importance of divisibility

Investing in a variety of smaller coins will enable the investor to spread the value of the investments. This is an important factor as it allows you to take advantage of different price points when the market is good. Investing in a large bar gives you that one opportunity to sell, while smaller coins can be sold bit by bit to maximise profits.

Silver bars can offer greater value

The experience of purchasing a large silver bar is altogether different from acquiring coins. There are large bars available that weigh 1 kg or 5 kg, and they offer an excellent opportunity to acquire more silver at a cheaper price per gram. This is simply because silver bars carry lower production costs and design costs. If the purpose of your investment is simply to acquire a larger amount of silver at cheaper prices, then bars could be the right choice for you. However, you need to bear in mind that large silver bars do not tick the boxes for divisibility, variety and tax efficiency.

Are silver coins or bars better?
Silver coins offer tax advantages

Tax-efficient investments in silver

Unlike gold, 20% VAT is payable on all silver bars and coins. Needless to say, this escalates your purchase price and eats into your profit margins.

Physical Gold, a well-known precious metals dealer in the country prior to Brexit offered VAT free silver. Sadly this is no longer possible, due to the terms of the UK’s exit from the EU. However, even with paying 20% VAT, the price differential is negligible. This is because:

a) We have reduced our product range of silver products. This means we are buying at highly competitive prices and pass this discount on to our customers!

b) We can also now provide free delivery on silver, as we ship now directly from the UK. Delivery was previously charged for

In addition, we can also supply silver and gold together in the same order now, whereas previously to attract VAT free silver we needed to accept “silver only” orders.

Silver coins that carry a face value, on the other hand, is recognised as legal tender in the country. Therefore, they can be acquired CGT free. While you will end up paying VAT when buying these coins, the profits you make when selling them are tax-free up to a level of £ 12,000 in a single tax year. It is important to be aware of these tax implications when investing in silver to make the right choices when building your portfolio.

Call our silver experts to get the right advice before buying

At Physical Gold, our precious metals experts can offer you impartial advice on making the right purchases. Call us on (020) 7060 9992 or get in touch with us online to discuss buying your silver.

 

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Are Silver Proof Coins a Good Investment?

Proof silver coins as an investment

Silver coins have increasingly gained popularity over the years for several reasons. Firstly, silver is much cheaper than gold and provides investors with an affordable pathway to access the precious metals market. Secondly, the industrial demand for silver has steadily risen over the last decade. At the same time, supplies have fallen significantly. So, there is a legitimate expectation amongst investors that the spot price of silver will eventually rise, allowing those who invested early to book healthy profits.

Investing in silver coins

Silver coins are a popular choice for collectors and investors alike. As many silver coins are legal tender in the UK, they provide an opportunity to invest, without having to carry the burden of Capital Gains Tax (CGT). However, when investing in silver coins, one needs to make the right choice. Silver coins are available as proof sets, bullion coins and rare/ collectable coins.

Are Silver Proof Coins a Good Investment?
These US Mint proof coins in silver are great for collectors

What are silver proof coins?

Proof coins were originally produced before the actual issue of a coin. They were used for securing approvals from the Ministry of Finance and the administration of the mint. Checking the proof coins is also a method used for verification of the dies used during the production process. Finally, they were retained for archival. Proof coins are usually produced by polishing the dies. This results in a high-quality finish, with a polished look and feel and sharp edges and design. The polished areas of the coin take on an almost mirror-like finish, especially in silver coins. Additionally, the dies used for production are often chemically treated to create a frosty appearance in some areas of the coin.


FREE Guide. Click here to download The Insiders Guide to Gold & Silver Investment


The rising popularity of proof coins

Due to their high-quality finish and attractiveness, silver proof coins have become extremely popular over the years and enjoys healthy demand from the general public. As a result of this, the Royal Mint has been issuing limited edition sets of proof coins. Of course, these coins can be bought at hefty premiums and are usually purchased by numismatists.

Silver proof coins as an investment

If an investment is a primary focus, then buying bullion coins is a better bet. Bullion coins finished to brilliant uncirculated finish are cheaper per gram than a silver proof coin. Most silver dealers will not pay you the same premium when you come to sell the proof silver coin. Proof coins are better suited to collectors or as presents.

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The premiums you would pay for buying a proof coin set is more or less the same as that of a commemorative issue. One needs to bear in mind that the higher price being charged for a proof coin is simply on account of production costs and limited availability. This does not change the price of the silver contained within the coin. Bullion coins, on the other hand, are freely available with low premiums. As an investor, you can secure great deals from dealers on bulk purchases of bullion coins. So, if you are buying silver coins as an investment, steer clear of buying silver proof coin sets. Buy current issues of silver bullion coins like the silver Britannia and you can land yourself a much better deal.

 

Call our silver investment team to discuss your silver coin purchases

Our investment experts offer you free and impartial advice on buying silver coins and bars (such as this 1KG bar). By connecting with the Physical Gold team, you can stay abreast of the latest deals and find out everything you need to know about buying silver coins. Call us today on (020) 7060 9992 or contact us online to speak to a member of the team.

 

 

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What are the 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. This makes buying gold bars such a 1 kilo gold bar unaffordable for many investors, although smaller sizes such as 1oz and 100g are still within reach.

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 probability, 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 (such as silver Britannias) 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.  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.

 

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What are the Benefits of Buying Silver Britannias?

Benefits of purchasing Silver Britannias

In 1987, the Royal Mint released the gold Britannia coin. These coins were an instant hit and won popularity among collectors and investors. So, to replicate the success of its gold counterpart, the silver Britannia was launched in 1997. At the time of its original issue, the coin had a fineness of 95.8%. In terms of look and feel, the silver Britannia was very similar to its sister coin – the gold Britannia. It featured the Britannia icon, which made the coin instantly recognisable on its reverse.

The coin depicted Britannia as a warrior goddess carrying her trident and shield. The design for the silver Britannia was conceptualised by the well-known designer – Jody Clark. By 2013, the coin was upgraded to 24 carat silver with a fineness of 99.9%. By this time, silver investment had started gaining popularity and the demand for the coin rose significantly.

Benefits of Buying Silver Britannias
The silver Britannia is a timeless classic

Affordability vs value

Silver Britannias are affordable to buy and store, as they can be bought in tubes of 25 and monster boxes of 500 coins. Since the coin had been released as a bullion coin, they were easily available at very low premiums. Buyers can contact reputed dealers and avail of bulk discounts on their purchases. So, availability and affordability are clearly two benefits that contribute to the popularity of this coin. On the other hand, silver has always been cheaper than gold. It was 85 times cheaper than the yellow metal not too long ago and now, with the global financial crisis deepening, the gap has widened further. Currently, silver is 113 times cheaper than gold, with the ratio touching as high as 125:1 in March 2020. So, this allows investors to have easy access to the precious metals market at a cheaper price point than gold. The silver Britannia coin has made huge gains on the back of this sentiment.

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Tax efficiency

As a legal tender coin, any value increases are completely free from Capital Gains Tax. So, UK investors can save a substantial amount in taxes by investing in this coin. Tax awareness is an essential consideration for any investor building a portfolio. The silver Britannia is a clear winner in this case, as the coin offers an opportunity to build a highly tax-efficient silver portfolio.

Liquidity

The silver Britannia is an instantly recognisable, popular coin across the world. Being issued by The Royal Mint, the coins are very liquid and easy to sell worldwide. This is a huge advantage for buyers since the coin can be sold instantly at any point in time, without losing out on market value. The liquidity factor enhances the demand for this coin as for investors who are keen to hold liquid investments that can be converted into cash when the need arises.


Understand the 7 Crucial Considerations before buying Silver Britannias. Click here


Divisibility

The silver Britannia is also available in different weights and sizes. There are special anniversary editions as well. This contributes to variety and divisibility – two more important benefits of owning the silver Britannia. Variety adds to the value of the coin, while divisibility allows investors to plan their sales and sell off small portions of their silver investments at a desirable market price.

Get in touch with us for guidance regarding your silver investments

At Physical Gold, we have a team of silver experts who can assist you in making the right purchasing decisions, when it comes to buying silver coins, as well as gold coins. Call us today on (020) 7060 9992 or get in touch with our team online to get the best deals on silver Britannias.

 

 

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Which is the Better Investment, Gold or Silver?

Gold or Silver Investment – which do I choose?

As investors increasingly turn to precious metals to protect their wealth, a common dilemma faced by many is whether to invest in gold or silver. The two metals behave quite differently, so it’s important to understand the dynamics of investing in either, before deciding to add them to your portfolio. Striking the right balance is essential to extricate value from your investments. Far too many people invest money into these asset classes without understanding what they’re getting into. Unfortunately, this can result in undesirable exposure to risk, further up the road. So, let’s take a close look at the right approach to combining your investments in both precious metals.

Historical analysis

Gold has historically been the precious metal of choice for most investors. During upheaval in the market, gold can provide safety and security for your investment portfolio. If we look back at every financial crisis, it is glaringly obvious that gold has risen to new heights during these times of uncertainty.

During the 2008 market crisis, gold reached its highest point in 2011. Similarly, at the height of the economic crisis created by the global pandemic last year, gold once again touched historical highs in August 2020. Even during a normal period in the market, gold performs steadily. Although the yellow metal may rise or fall in the course of market transactions, it does not suffer from extreme volatility. This makes it a fairly safe bet for most investors.

Gold or Silver Investment
Silver bullion bars can be a great investment as the price is predicted to rise

Investment horizon

Investment planning is perhaps the most important step when investing money into any asset class. Gold and silver exhibit different behaviours across different time horizons. Gold has historically been seen as a safe and steady investment that generates returns and unlocks value over time. Silver, on the other hand, is often seen as a volatile precious metal.

Currently, there is a lot of interest in silver investments as pundits have predicted the mercurial rise of silver in the years to come. Gold is usually a better option for those investing with a shorter time horizon. Silver investors will require a much longer time horizon to unlock value from their investments. However, if the white metal behaves as predicted, there is an incredible opportunity to get in at lower price points and reap great returns in the future.

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The gold-silver ratio

Another factor that governs investments in gold or silver is their price ratio. This has widened considerably over the years. It used to be 47:1 but now stands at 85:1. So, silver presents an incredible opportunity for investors to access the precious metals market as it is 85 times cheaper than gold. That is simply an incredible gap, and many investors want to get in and make hay while the sun shines.

But does it make sense to invest in silver? The white metal is a lot cheaper than gold and provides investors with affordable and easy access to the precious metals markets. Due to the widening gold-silver ratio, an entry-level investor may find it more attractive to buy silver.

Daniel Fisher, CEO of Physical Gold believes that the gap could widen further in the near future. According to his prediction, there is a possibility that it could soon be 100:1. Now, more than ever, it is imperative to strike the right balance between these two precious metals, when deciding to add both to your portfolio.

Which is the Better Investment Gold or Silver?
The silver Britannia is an excellent coin for investment

The demand for silver surges

Additionally, silver has suffered from production shortages in the last few years, while demand has risen substantially. As a metal, silver has certain sterling properties. It is one of the most conductive metals and also very ductile. Due to this, it is in demand across several industries like solar, electronics, electric vehicles, etc. Silver investors believe that the price of the white metal may escalate significantly in the years to come, and it may be prudent to lock in investments at low prices now. This may create a wonderful opportunity to reap profits when prices start to rise.

Precious metals portfolio – the right balance

Silver investments can be more volatile when compared to gold. Silver enjoys huge industrial demand and prices are expected to rise as supplies are thinning out. Historical price charts show us that silver tracks gold in terms of growth. Over the long-term, the gold-silver price ratio could reduce to 25:1. The production price is another factor that also needs to be taken into consideration.

In the case of gold, the production margins fade in comparison to its value. However, silver’s current spot price of around £11 does not allow the flexibility to absorb these margins. To strike a healthy balance, a prudent approach could be to maintain a holding of 8% in gold, followed by 20% in silver.

So, if you are focused on building a strong portfolio and hedging risks, gold may be a natural choice. However, if long-term profits attract you, silver investments may fulfil this objective. Gold offers better returns in the short-term and silver can provide you with an opportunity to capitalise over the longer term.

Which is the Better Investment Gold or Silver?
Physical gold investments can generate better returns in the short term

Combining the two metals

It’s actually most prudent to own a mix of both gold and silver. Gold is a more established safe-haven asset, so tends to gain more from market downturns and volatility. Silver can also perform well in these circumstances but also benefits when industrial demand for silver increases as it’s used so widely in electronics. While silver certainly has more opportunity for huge growth, gold is the steadier of the two.

Of course, there are certain tax advantages and disadvantages of buying silver. Silver coins that are legal tender in the UK can qualify for Capital Gains Tax (CGT) exemption. However, other silver investments may not.

The investment experts at Physical Gold can discuss your gold and silver investments

Our investment team is well-placed to offer expert advice to investors like you about investments in either precious metal. Get in touch with us by dialling (020) 7060 9992 or simply send us an email. We can assist you in making the right decision to balance your portfolio by adding both gold and silver.

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Will Silver Coins Go Up in Value?

Spotting an investment opportunity in precious metals can be lucrative if you buy early. Silver is currently very low-cost compared to gold so is seen as a bargain, providing more likelihood of future gains. The current gold-silver price ratio is 85:1. It’s interesting to note that this ratio was 47:1 some years ago. In other words, the spot price of silver has fallen significantly over the years. Of course, many investors believe that there is a downside risk of investing in silver. The present price of silver is around £12 per ounce. So, is there a risk involved in buying silver coins?

A case for the appreciation of silver prices

Silver is in great demand all over the world. As the most conductive of all metals, silver is the preferred use in technological goods, so analysts predict demand to continue rising. Silver continues to remain the preferred metal for conductivity in photovoltaic cells, which is an integral part of solar panels. As the world moves toward sustainable energy solutions, the production of solar panels is likely to keep rising. Silver is also used in all electronic products like mobile phones, laptops and tablets. As our world becomes increasingly connected through technology, the demand for silver will rise.

Will Silver Coins Go Up in Value?
Silver coins can be a great investment over the long term

Rise in prices due to falling supplies

Electric cars are soon becoming the obvious choice for land transportation. With petroleum and diesel passenger vehicles expected to be phased out from Europe between 2030 to 2040, electric cars will occupy the lion’s share of the market. Silver is a critical component for e-mobility and the overall demand is expected to shoot up due to the above factors. On the other hand, there has been a significant drop in the production of silver from the world’s largest producing countries like Peru, Mexico and China. So, on the basis of supply and demand, we can reasonably expect prices to go up eventually.

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How can silver coins deliver value?

First of all, silver coins provide divisibility to any precious metal portfolio. Many investors prefer to purchase silver bars. However, when selling back into the secondary market, bars (such as a 1 kilo silver bar) give you only one chance to sell. Coin investors, on the other hand, benefit from holding a variety of denominations. They can sell small parts of their silver holding as and when the price is right.

Silver coins (such as the silver Britannia) also provide a tax-efficient avenue for investment. Many silver coins are considered to be legal tender in the UK since they have a face value. Investing in these coins can provide an attractive CGT exemption.

Silver coins can deliver value over the long term

The value of silver coins can be volatile. They can go up and down in the short term. Over the long term as a precious metals with limited supply and increasing demand, they are likely to rise in value. Premiums on collectable silver coins can rise quicker than the market price of silver due to interest from both collectors and investors.

So, we can surmise that the downside risk involved in buying silver coins is minimal. Coins, in particular, can deliver good returns over a period of time while maintaining tax efficiency for your portfolio.

Contact Physical Gold to buy silver coins

The investment team at Physical Gold are always helpful in guiding buyers to make the right choices when it comes to silver coins. Contact the team on (020) 7060 9992 and you can benefit from advice, as well as guidance in buying the right silver coins that can provide great value.

 

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Is There a Limit on Britannia Silver Coins Mintage?

The silver Britannia is an iconic British coin. The coin was released in 1997, due to the popularity of its gold counterpart. The silver Britannia offers investors and easy entry point into the world of precious metals, as the spot price of silver is currently 85 times cheaper than gold.

The coin adds divisibility and stability to any precious metal’s portfolio. Being legal tender in the UK offers investors the added advantage of acquiring the coin CGT free. We will now explore the current and historical limits on the mintage of this iconic piece of British coinage.

Early limits on mintage

In 1997, when the coin was first released into the market, the coin was available with the fineness of .958, indicating 95.8% pure silver. The coin is released in three ways; as proof, uncirculated bullion, and as part of proof sets. Mintage numbers have varied from year to year for each of these categories, but have settled on 2,500 for both proof types, and 100,000 for the bullion coins since 2008.


Click here to Download our FREE cheat sheet to buying tax free silver Britannias


The initial limit imposed on the 1-ounce proof orders in 1997 was 16,005. In the same year, the limit for proof sets was set at 11,832. By 1998, the uncirculated bullion mintage reached 88,909. The Royal Mint was responding to its increased demand as a silver bullion coin. However, in the same year, the 1-ounce proof edition of the coin was reduced to 3044. Proof sets orders were also limited to 3044, down from 11,832 in the first year of issue.

Britannia Silver Coins Mintage
The silver Britannia coin

Variable mintage quantities over the next seven years

By 1999, uncirculated bullion amounts of reduced to 69,394 and proof coins were discontinued in both the 1-ounce proof and the sets categories. The next few years saw limited numbers of uncirculated bullion coins being released in the market, ranging from 81,301 in 2000 to 100,000 in 2004. During these years, extremely limited quantities of proof sets and the 1-ounce proof coins were released. The Royal Mint was releasing the coins year-on-year, according to expected demand.

Insider's Guide to gold and silver

Further changes to the silver Britannia

Steady streams of 100,000 uncirculated bullion coins were released from 2004 to 2009. An interesting fact to note is that in 2006, a silhouette collection of proof sets was released, which had five styles where the purity of silver was increased to 99.9%, along with gold gilts around the coin. By 2013, the purity of the coin was raised to 999.9 or 99.9%. The popularity of the coin had been greatly enhanced by this time. Mintage has become unlimited since 2013, in an attempt to meet the rising investment demand. The coin is therefore produced according to the volume of the order book.

An interesting anomaly

In 2014, around 17,000 silver Britannia coins were struck at the Royal Mint with a wrong image on the obverse. There had been a mix-up with the Royal Mint’s lunar series – the year of the horse. These coins are commonly known as the ‘Mule Britannia’ and carry substantial premiums at auctions, due to demand from numismatists.

Get in touch with Physical Gold for silver Britannia investments

The silver Britannia is a flagship silver coin for investors and can generate good returns in the long-term. Call our investment team on (020) 7060 9992 to find out how this iconic British coin can be added to your portfolio.

 

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Infographics

Gold Storage or Delivery?

gold storage

Gold Storage or Delivery

Is gold storage something you’re thinking about?  Are you interested in purchasing physical Gold or silver, but concerned about where you’ll store it?   Our infographic highlights the various options available; to help put your mind at rest.

The main advantage of owning physical gold is that it’s the real thing!  There’s no counterparty risk, as there’s no electronic trading or paper involved.   It’s as real and solid as can be and something that you have the pleasure of holding in your hand.

 

But how do you keep a precious metal safe and secure?

Insured delivery direct to your door

Delivered to you fully insured, our delivery is discreet, so the whole neighbourhood won’t know what you’re taking delivery of.  It’s packaged in plain, padded envelopes, safely and securely.   We also track every package that we post, which allows us to follow up on any queries and provide reassurance on when you should expect your delivery.    If your gold or silver is in stock, and you place your order before 2pm, then we should be able to get it to you by the next working day. Before 1pm to be precise.     Should your order be out of stock then we’ll aim to deliver it within 2 – 3 days – depending on the stock availability. From 2018 all gold orders benefit from free UK delivery.


Thinking of buying gold? Download the FREE 7 step cheat sheet first


Professional gold storage vaults at the Bank of England
Home safes often have a digital locking device

Gold Storage Options

Once you’ve received your package and signed for it, there are several options for you to consider regarding storage:

Home storage

Many people choose to keep their gold stored safely at home and there are many options available for home storage.  A steel safe is the most obvious choice for safety and security – preferable bolted down to the floor.   But if bolting the safe isn’t an option, then try to keep them safe somewhere out of sight, like in a cupboard, hidden by other items.

You can also use everyday household cupboard items, like tins, packets of cereal, boxes of tea bags etc. to hide and conceal your gold, but it’s important that you remember where you’ve stored it so it doesn’t accidentally get thrown away. There are many different steel safes available for home use. These include fireproof and waterproof ones. There are even models that can be unlocked by using your fingerprints. They can also be installed inside the flooring, underneath the carpet.

There are a number of ingenious secret storage items that you can purchase from PhysicalGold.com, such as clocks or wall sockets, to help you conceal & store your precious metals.

Hiding things under the mattress is also more common than you might think, but whichever home storage option you choose, you must ensure your home insurance covers the total value of the gold.  The advantage of keeping your gold at home is that you know exactly where it is, you can keep it close and touch it, as often as you wish.

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Bank Deposit Box

Safety deposit boxes at banks are considered to be extremely safe and secure, so it’s worth visiting your bank to ask about the availability of one if this is of interest to you.   Many banks have been withdrawing these facilities over the past few years though, so there may be a waiting list or a box may be quite difficult to acquire.

Safety Deposit Facility

A third-party safety deposit facility offers boxes for you to rent to keep your small, personal household items safe.  These facilities are usually open 9 – 5pm for you to visit and generally cost between £100 – £1000 per year to rent.

Since tariffs are expensive, it could work well as a short-term arrangement. The benefits of using a safety deposit facility are that your valuable assets are stored away from your home.

Additionally, these boxes are available in various sizes and you can choose one according to your requirements. Of course, one of the disadvantages of this arrangement is that you cannot access the box at any time of your choice. You can only do so when the facility is open. Also, there could be a natural disaster like a flood that could damage your belongings stored inside the box. In many cases, the operator may refuse to re-compensate you for your damages when this happens, simply because their insurance may not cover it

Professional Vault Storage  

The most common (and safest) gold storage option is to arrange for the secure storage of your gold with your chosen dealer, as they have access to secure vaults.  These professional vaults offer 24hr safety and security, giving you reassurance and peace of mind.   The vaults are highly secure and generally don’t allow public visits, but rest assured your gold will be personally allocated and stored separately in a fully segregated account, within your own little section in the vault.

At PhysicalGold.com, pension gold, silver coins and gold coins are stored at Loomis International, UK – one of the UK’s most secure gold storage facilities.     Silver Bars are stored at Network Securities in the Channel Islands – a specialist vault facility that has dual controlled security systems and a direct connection to the local police station.

So if you choose to store your precious metals with us, we can reassure you that all of our stored gold and silver is fully insured, segregated and completely ring-fenced and you can request home delivery of your gold at any time.   However, given the high levels of security involved, it’s often not possible for the public to request to view their gold, but we can assure you that it is there – safe and secure.PHYS01_Animated_Gif_2_MPU

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Are Silver Coins a Good Investment?

Investing in silver coins may be attractive, but there are certain important points we need to consider first. In this article we explore “Are silver coins a good investment?”

Size and investment options

Silver coins are available in a variety of sizes. Apart from the normal sizes up to an ounce, they are now available in larger versions of 10 ounces and 1 kg. There has been speculation in the market for a while that the prices of silver are likely to go up significantly. With the spot price currently hovering around £11 per ounce, there are great profits to be made if it rises threefold. The other reason that silver is attractive to investors is that it is 85 times cheaper than gold. Gold can be prohibitively expensive for retail investors. Silver offers access to the precious metals market at an unbelievable price point.

The industrial demand for silver

Silver has a huge industrial demand. It is widely used for the manufacture of electronics, computers, solar panels, and has a range of other industrial applications. Reducing supplies of the white metal has prompted investment experts to speculate about a possible hike in prices. If you are thinking of silver coins investment and taking a calculated risk on its price, you may have to wait for at least 3 to 5 years before you can get a reasonable return.

Insider's Guide to gold and silver

They can be a great investment if bought in the right way at the right time. Silver is significantly undervalued compared to historical levels, so a medium to long term holding is advised to maximise returns.

Are Silver Coins a Good Investment
Silver coins can be a great investment if the right coins are chosen

Need for liquidity and buying coins which can be resold

Your investment is only as good as its liquidity. If you cannot take advantage of the right price point in the market by selling easily and quickly, the investment is useless. Therefore, always buy silver coins with a mass appeal and avoid purchasing obscure and rare coins. Well-known coins enjoy a vibrant secondary market, which makes it much easier to sell when the time is right. 1-ounce silver coins like the silver Krugerrand is an ideal choice.

How about collectable coins?

You may be able to extract better value from your investment if you choose a collectable coin. The premiums on these coins usually rise very quickly and investing in them can be an excellent strategy to get quick returns. Likewise, a popular coin like the 1-ounce silver Britannia makes an excellent addition to your investment portfolio. It ticks all the boxes for divisibility, liquidity and collectability. So, it’s evident that investing in silver coins can be a great idea as long as you plan properly and buy the right coins which are likely to meet your investment goals.

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Understand purity levels

When choosing coins, purity is an important factor. Many silver coins are available with 95.8% purity. But, if you do your research well and choose a coin like the Canadian Silver Maple Leaf, you have a coin with 99.9% purity. There can be different strategies for choosing the right silver coins for your investment. Purity, divisibility, variety and value are important considerations.

Tax advantages and efficiencies

From a tax perspective, silver coins which are legal tender in the UK will automatically be CGT free.

Prior to the UK leaving the EU, Physical Gold were the only silver dealer in the UK who could provide VAT free silver. Post-Brexit this is no longer possible. Due to the following reasons though, we are able to sell silver coins and bars at similar “all in” prices to previous:

  1. Free delivery – we can now provide free delivery, previously this was chargeable
  2. Reduced product range – we now provide a reduced range of silver products. This means we have negotiated better prices for the products we supply, we pass this discount on to our customers!

The overall net result is that the price difference when you buy silver coins and bars the price difference even with paying VAT is negligible and certainly competitive with other UK dealers.

We also can now accept orders for mixed gold and silver purchases, whereas previously we could only process “silver only” orders to obtain VAT free silver.

Contacting Physical Gold for Advice

Please visit the Physical Gold website for more information on how to profit from your investment in silver coins. Speak to us today on 020 7060 9992, leave an instant message or complete our contact form. We look forward to being of service and support.

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Should I Invest In Gold Or Silver? – Physical Gold Video

Silver investing now and in the coming years

In this video, we’ll take a look at silver’s prospects for 2020 and beyond. Over the past 5 years, interest in silver has grown exponentially to the point where we now get almost as many silver enquiries as gold.

So is silver a worthwhile investment in 2020 and 21, and what can we expect from it, we examine silver investing in 2020?

I’d like to start by looking at downside risk. The silver price has fallen from around £13 an ounce at the start of 2017, to £12.50/oz the following year, and nearer to £12 an ounce in 2019. Clearly, the prospect of owning a depreciating asset is unappealing.

Downside risk

However, unlike gold, silver’s demand consists predominantly from industrial use. As the world’s most conductive material, silver is used in most electronic components, solar panels, photography and medicines. The digital age is only going to develop over the coming years, creating new electronic demands on silver. The search for alternative energy will lead to increasing silver demand with electric cars and electric solar energy. So with industrial demand rising, downside risk to silver is minimal.

Gold-Silver ratio

It’s also fair to say that the silver price has suffered far worse in recent years than the gold price, with clear suggestions that it’s been oversold. The ratio between the two metals’ prices has widened from a long term average of 47:1 to 70:1 a few years ago, and now an incredible 95:1.

This theme may scare inexperienced investors, but this would suggest a buying opportunity in 2020 for silver. If you can lock in prices when the silver price is so low, your upside becomes magnified.  The silver market is far smaller than that of gold, so prices can be more volatile. It also means that the price can move up in percentage terms far quicker and far greater.

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Global economy

The silver price could well receive a double boost over the coming years.

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As well as the rising industrial demand, there’s plenty of uncertainty in the global economy to boost silver as a safe haven. 2019 and beyond marks a turn in the economic cycle. The middle of 2018 saw property prices begin to fall and global stock markets start to decline from their 9-year bull run. After nearly a decade of rising stock and property prices, the global economy is set for a big correction, especially with interest rates now on the rise. Throw in Brexit and a growing car leasing credit bubble, and safe havens could well become the flavour of the month once again. Gold will likely rise first, with silver following behind. But once silver starts its upward trend, the pace of increase will outstrip that of gold.

Diversify

A lot of investors ask me whether they should buy gold or silver. After all the two metals are quite different. For me, there’s a strong case to own both. Diversification is key in today’s digital globalised economy, so investing in silver and gold is a great way to hedge your hedge!

Now tax free

By sticking to Silver Britannia coins, any profit you make is also free from Capital Gains Tax!

Silver investing in 2020 with Physical Gold Ltd

So there you have it. 2020 and beyond are set to be exciting years for silver investing. Courage may be needed to enter a market which has fallen in value, but history will tell you, that’s the exact time to stack your claim.

If you feel silver could play a role in your investment portfolio, or you simply want to buy some silver coins or bars, then don’t hesitate to call our team of experts on 020 7060 9992 for any guidance you need.

I hope you’ve enjoyed today’s video. If so, please check out all 20 videos in the gold & silver investment guide series.