Click here to view Guide
Should I Buy Silver as well as Gold Bullion?
Many investors spend time deciding whether to buy gold or buy silver, however the savviest investors own both. Whereas gold could offer the ultimate insurance and protection against uncertain economic times, silver is a more speculative investment. Despite gold and silver both being commonly invested precious metals, silver is an entirely different investment which can realise substantial profits despite the initial VAT outlay. And it’s because of these differences, why owning both gold and silver together can be of benefit.
Buy Silver – A Speculative Investment
Silver does not offer the same level of security that gold does due to the volatility in the silver price, however the consistent fluctuations result in more opportunities to buy and sell at profit making silver a more speculative investment. History tells silver is a riskier investment than the safe haven of gold which has consistently preserved and increased the value of money, however silver has also proven to be a very good investment. In the last three years between December 2008 and December 2011, the silver price has increased 233%, substantially outperforming any other investment type such as stocks, property and even gold.
Buy Silver – A Long Term Investment
Unlike gold bullion, all silver bars and silver coins are taxed at a rate of 20%. Paying Value Added Tax or VAT often encourages investors to turn to gold. However, it is advised that buying silver is very much as long term investment and should be owning for at least a 12 months. Ideally silver investments should be kept many years, however it is believed based on recent history keeping your silver for at least a year may be long enough to recover the 20% VAT initially paid, and return a profit. For example if an individual invested £10,000 (£12,000 including VAT) in silver in December 2008, their silver bullion would now be worth over £33,000 three years later in December 2011.
Buy Silver – Portfolio Diversification
Owning physical silver bars and silver coins can offer an effective way of diversifying an individual’s investment portfolio, therefore spreading risk and providing additional protection against other investments. It is widely thought silver will continue to strengthen in price and demand due to the fact that silver is still widely used in industry despite its status as a precious metal.
Buy Silver – Easy to Exchange
With the world economy seemingly in uncertain times, many individuals choose to buy silver as an alternative form of currency to protect themselves against any possible situation where money lost much of its value, or all of its value. With this in mind, silver offers a different option to gold as small units of silver such as 1oz silver coins provide the ideal currency to exchange or pay for everyday items due to their relatively small value per unit. In comparison, gold coins and bars which are around 40 times more valuable than silver, would be better used to exchange for much larger items or assets.
If you have any questions please feel free to contact our knowledgeable and friendly sales team on 0121 554 9914 who will be happy to talk your through any queries you may have. Alternatively, you can e-mail us on: sales@bullionbypost.co.uk and we will get back to you as soon as possible.
Buy Silver | Silver Bullion | Silver Bars | Silver Coins | Silver Britannias | Buy Silver UK | Silver Ingots | Buy Silver Coins | Buying Silver | Silver Bullion UK | Silver Coins for Sale | Buying Silver Bullion
Related Links:
View our Top 5 Silver Investments and our Top 5 Gold Investments.
Why Buy Gold and Silver from Bullion by Post?
