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What You Need To Know Before Buying Silver Coins

Silver is another precious metal that is quite a popular investment option across the UK and the world. Silver bullion is available in the form of silver bars and coins, but it is not as popular as gold. Whether you are planning to buy silver coins or bars, there are certain aspects you should consider, including:

VAT: Unlike gold, silver investment attracts VAT (value added tax). The amount of VAT payable in the UK is 20% on silver coins and bars.

Price Volatility: Silver price, as compared to gold, is much more volatile. History shows that the price of silver in 2011 shot up by 59% in the first 4 months and then fell by 30% within 6 days. Further, historical facts show that in a 5-year period from 2006 to 2011, silver price jumped by a whopping 248% and reached its peak in April 2011 at £29 per troy ounce or 94p per gram. The good news is, in the recent times, silver has been outperforming most of the precious metals, including gold.

silver-coinsCGT Free: The only silver coins that are free from Capital Gains Tax include silver Britannia.

Check Daily Price: If you are planning to buy silver coins, it is important to check silver price on a daily basis. If you are a first-time investor, the recommended option is to monitor the price of silver over a short period of time, such as a week, a month, or 6 months. This will help you to understand how silver price is performing in the UK market (in GBP), the US market (in USD), and in the world market.

Flexibility of storage: Silver coins can be stored anywhere because of their size and weight. Unlike silver bars, they pose a lower risk. You can store silver coins at home as well as in bank lockers.

Variety: There is a wide variety of silver coins available for investors. Whether you are planning to buy silver Britannia or normal silver coins, you need to check the authenticity with your dealer. Ideally, silver coins should have been fabricated by London Bullion Market Association (LBMA) approved UK refiners.