A long-term investment

Investors are often turning away from silver because all silver bars and coins are taxed at a rate of 20%.  The paying of VAT (or value added tax) on silver usually leads investors to conclude gold is a better investment.

Silver is still a very good option, however.

Silver should be considered a long terms investment and our advice is to hold it for at least twelve months if not for a good few years.  Twelve months is usually considered to be enough time to compensate for the 20% vat cost and return a profit.

As an example, an investor that invested £5000 (£6000 with VAT) in silver in 2008 and held it for three years would have had the value of their investment rise to over £16,000.

As a bonus tip, second-hand silver doesn’t have VAT charged on it, so it’s always worth asking your dealer if they have any second-hand coins or bars.

 

Disclaimer: This is not financial advice.