Best Silver to Stack UK

[ArgentSmith]

Tatty, milk spotted or scratched, lowest premium CGT free 1oz 999 silver brits. Am I right or am I right?

What do other members think is the best strategy for VAT plagued UK stackers 🤔

 

[daca]

1 hour ago, ArgentSmith said:

milk spotted .... brits.

pretty sure that they are synonymous

on topic : buy second hand on the forum, many great sellers here

[Bigmarc]

Pre decimal, from eBay, collections not by weight

[stefffana]

Hi, @ArgentSmith,

I will tell you what I am thinking about stacking silver. It is the same answer for the question asked by @Bigmarc in April in another very interesting topic on forum:  "How much silver to hold? " see https://www.thesilverforum.com/topic/46885-how-much-silver-to-hold/?tab=comments#comment-500609.

 

So, I've done copy/paste on here to answer at your very good question. My calculations from April are still pretty accurate even in November, at that moment the silver spot price was £18.42/g, very close to £18.39 at the time of typing. I didn't check again the silver prices at dealers to update everything, but this is the idea:

 

" I believe the real potential of silver is in spot price, not in premium. So, now I am stacking only low premium silver, very easy to sell near spot price (1000g,  500g bars, old british currency, and scrap ). I sold already all high premium coins and I've converted all in sovereigns and another silver low premium.

Why? Because in next future the industrial demand will generate a rise in spot price and my stack's value will increase and I will do profit only waiting. The shiny silver coins ( now at spot + 60-95% ) will lose from their high premium when the spot price will be high. The market demand will be for cheap silver, not for expensive coins. 

I can't understand why people are interested to pay now for a silver 1oz coin £28 - £35, equivalent at £18.42 spot price + 52% to +95% premium, when the same metal can be bought easy at 0 to 30% premium in a different shape. I am not talking about numismatic or collectible products. This is another story, I don't know this game, I am talking only about pure stacking.

About quantity... Depends on your style of life, your age, your plan of retirement, depends on what you want to give to next generation. But a minimum one is around 15kg silver and equal value in low premium gold in your stack.

This is my opinion, I am not a guru in PM, but I prefer to stay safe, speculating only the spot price and ignoring high premium products. 

 

Let's imagine a scenario, using today's spot price £18.42/oz silver and a future potential spot price x2.5 = £46.05/oz silver.

 

John bought today from a dealer 1 kg bar, paying £790.62, VAT and shipping included. This is £24.58/oz, +34% premium.

Jane bought today 32oz (app.1 kg) silver Royal Arms and she paid £1129, VAT and shipping included. This is £35.28/oz, +91.5 premium.

After few years, the spot price is £46.05/oz = £1480.7/kg and it is time to sell. 

John will sell quick 5% over spot, having in hand £1554.7. His pure profit is £764/kg.

Jane will struggle to sell at 30% over spot, but because the spot is so high, she will accept finally only 10% over spot, having in hand £1628.7. Her pure profit is only £499/kg.

It is a difference of £265/kg between John and Jane. If the stack is 15kg, the difference is £3975.

 

But let's talk about Bob. He bought today 1kg scrap silver at spot price. He paid £592. He sold his silver in the same day as John and Jane at spot price, having in hand £1480.7. His pure profit is £888.5.

Position in this game:

1. Bob:   £888.5 profit/kg;

2. John: £764 profit/kg;

3. Jane: £499 profit/kg.

 

This is rough, because in reality, Bob was able to buy more scrap than John and Jane, using the same money.

If we are talking about the same money invested, the difference is huge.

 

Let's compare now only Bob and Jane, to be more visible this difference.

Jane paid £1129/kg for Royal Arms and Bob used the same money, buying 1.9kg scrap silver.

Jane is selling after years at £1628.7 with profit £499.

Bob is selling after years at £2813.3 with profit £1684, with a difference between them of £1185.

If the stack is 15kg, the difference of profit between Bob and Jane is £17775.

 

This is the reason I am trusting in spot price, not in premiums.

I hope my explanation was clear enough for all new stackers. I know, it is difficult to see the real potential of scrap. But from scrap to treasure it is only a little step.😊 When you will see here scrap silver at spot price, do not hesitate and buy quick!😁

Happy stacking, guys, happy stacking! "

Kindest regards,

Stefan.

Edited November 22, 2021 by stefffana

[scotwasp]

I like this post, but don’t you think there is merit in being John, good profit and for novice stackers, less risk, as I would trust I was buying legitimate product and find a resale market easier,,,,,, just a thought.  So far I buy silver 1oz coins every month, but you have made me rethink my strategy. 👏

[stefffana]

14 minutes ago, scotwasp said:

I like this post, but don’t you think there is merit in being John, good profit and for novice stackers, less risk, as I would trust I was buying legitimate product and find a resale market easier,,,,,, just a thought.  So far I buy silver 1oz coins every month, but you have made me rethink my strategy. 👏

Yes, it is true, bullion recognised products are easier to resale, but you are losing a part from the premium you've paid.

When I am talking about scrap silver, I am talking also about recognised products out of use: fully hallmarked cutlery, flatware, old junk silver coinage, etc. All of these products are also easy to sell around spot price on private market, or around 80-90% spot at dealers if it is a bigger quantity and you have not time.

[Centauri167]

I buy a combination of bars, junk silver and BU coins with the cheapest price and off course a few specials to keep it a little bit a hobby and not just an investment.

But buying at the lowest premium is often, not always, a good advice.

[scotwasp]

I guess as I get more confident I will look at other silver options, but for now I mainly buy boring 25 coin tubes from online dealers.

 I have bought a few other coin packs from a couple of auctions (not coin auctions) which have proven to be my best value buys, every dedicated coin auction I have looked at seems to be overpriced!  Maybe it’s just the ones I have followed. 

[stefffana]

6 minutes ago, scotwasp said:

I guess as I get more confident I will look at other silver options, but for now I mainly buy boring 25 coin tubes from online dealers.

 I have bought a few other coin packs from a couple of auctions (not coin auctions) which have proven to be my best value buys, every dedicated coin auction I have looked at seems to be overpriced!  Maybe it’s just the ones I have followed. 

You can try on this forum and for sure you will be surprised about quality and price. 

[argentumstacker]

Are there places which do sell VAT free silver in the UK ( pre owned)?

[stefffana]

3 minutes ago, argentumstacker said:

Are there places which do sell VAT free silver in the UK ( pre owned)?

Yes, of course, on The Silver Forum😊

[Centauri167]

7 minutes ago, argentumstacker said:

Are there places which do sell VAT free silver in the UK ( pre owned)?

https://www.thesilverforum.com/forum/13-united-kingdom-ungraded/

 

😀

[Bigmarc]

10 minutes ago, argentumstacker said:

Are there places which do sell VAT free silver in the UK ( pre owned)?

I've used a couple of companies in the past but they are classed as private dealers that don't operate all year round (stop when they get to the tax threshold). To be honest with the premiums this year it's hard to tell the difference between vat free small business and a large company turning over a large volume. look at Atkinsons (when they have them in stock) and compare the prices to here. 

https://atkinsonsbullion.com/silver/silver-coins/1oz-silver-coins?quantity=0

 

 

[CANV]

If silver goes to 45 quid an ounce and stays there for 6 months/ 1 year. The more collectible bars and coins will regain their premium .  A 10 pound an ounce premium at 17 quid spot. Won’t seem quite so onerous at 45 quid an ounce spot.    Also you will have a whole new generation of stackers piling in, and in the uk they will head for Britannias first 

[Bigmarc]

12 minutes ago, CANV said:

If silver goes to 45 quid an ounce and stays there for 6 months/ 1 year. The more collectible bars and coins will regain their premium .  A 10 pound an ounce premium at 17 quid spot. Won’t seem quite so onerous at 45 quid an ounce spot.    Also you will have a whole new generation of stackers piling in, and in the uk they will head for Britannias first 

There are loads of if's floating around at the moment. Just try to get the best deal you can with the funds that you have. Because "if" it doesn't reach £45 you can get your money back as it's a store of value not a speculative play.

[CANV]

‘If’ it goes to 11 quid spot you won’t 

[ArgentSmith]

40 minutes ago, CANV said:

If silver goes to 45 quid an ounce and stays there for 6 months/ 1 year. The more collectible bars and coins will regain their premium .  A 10 pound an ounce premium at 17 quid spot. Won’t seem quite so onerous at 45 quid an ounce spot.    Also you will have a whole new generation of stackers piling in, and in the uk they will head for Britannias first 

I would disagree unless the gains are in line overall inflation.

[Bigmarc]

28 minutes ago, CANV said:

‘If’ it goes to 11 quid spot you won’t 

Has been £11 quite a few times in the last 10 years

[stefffana]

1 minute ago, Bigmarc said:

Has been £11 quite a few times in the last 10 years

And this is already history...

[Bigmarc]

1 minute ago, stefffana said:

And this is already history...

If a new member ask a question it's probably best not to say don't worry about the price because it's going to reach £45. 

[Paul]

Just buy gold from day 1 would be my advice, having bought my first silver in mid 2000s  bullionvault silver if you wanna chase the silver train, but make sure it's a sizable sum, so the vault fees don't sting you

[Centauri167]

7 hours ago, CANV said:

If silver goes to 45 quid an ounce and stays there for 6 months/ 1 year. The more collectible bars and coins will regain their premium .  A 10 pound an ounce premium at 17 quid spot. Won’t seem quite so onerous at 45 quid an ounce spot.    Also you will have a whole new generation of stackers piling in, and in the uk they will head for Britannias first 

You have a year in mind for when it will reach 45 GBP ?

 

Even when silver goes higher, only a few higher premium coins really take advantage of the higher silver price, most of them will stay behind. That's what I saw the last 8 years since I am stacking silver and gold.

[LukeStacker]

I am all about buying any silver as close to spot as possible. If you get to a time when you need to cash out then selling for current spot price in my mind is a fast and easy way to sell; especially if you don't have a selling track record. 

Also I did take it to a dealer then at least I would get close to spot and therefore (depending on how many years I held for) likely be still making a little bit or at the very least releasing the money; which is what I need. 

I buy some premium to either resell or because I genuinely like it and want it, but otherwise coins, cutlery etc at spot price please. 

[StackemHigh]

Gold VAT Free