Buying silver online from reputable companies!

[Ukbullionfan]

Hey guys I just wanted to know why sites like bullion by post have such high premiums in silver especially when there’s VAT added to the total price too.

For instance the price of silver is around £17 per ounce at the moment. Most of the 1oz coins are around £24/£25 pound each then when you add on the VAT it’s hitting nearly £30 pound an ounce.

Why such high premiums ? It seems silver is an awful investment as it could take decades to even break even. Being in the Uk seems that physical silver would be an awful investment. Am I missing something ?

[daca]

4 minutes ago, Ukbullionfan said:

Why such high premiums ?

Dealers greed.

[Jvw]

5 hours ago, Ukbullionfan said:

Hey guys I just wanted to know why sites like bullion by post have such high premiums in silver especially when there’s VAT added to the total price too.

For instance the price of silver is around £17 per ounce at the moment. Most of the 1oz coins are around £24/£25 pound each then when you add on the VAT it’s hitting nearly £30 pound an ounce.

Why such high premiums ? It seems silver is an awful investment as it could take decades to even break even. Being in the Uk seems that physical silver would be an awful investment. Am I missing something ?

Bullion by post has a high premium but then they offer *free* shipping. 

I am sure you could find some bullion silver for 24/25GBP per 1oz. VAT included. But then you need to factor in shipping.

[KevinFlynn]

5 hours ago, Ukbullionfan said:

...

It seems silver is an awful investment as it could take decades to even break even.

Being in the Uk seems that physical silver would be an awful investment.

...

You're right on both accounts.

May I point you towards two threads

The value of silver as an investment in UK

and to mitigate that a bit

Why are people stacking Silver over Gold when there is a VAT on silver?

In short:

Buying from institutional sellers with VAT is killing profitability.

Institutional sellers' premiums are very high at the moment (silver is being hyped up), limiting profitability.

Buying from private sellers (say here on the forums) will mitigate those effects to a degree (you may at least sell closer to what you paid for). And buying from institutional sellers on these forums will be better as well.

Silver is a speculative investment (and even paper silver will make you loose money at the moment).

When aiming for wealth preparation get gold.

My questions to you are:

What would you be aiming for with investing in physical silver?

Could you fullfill what you're aiming for with physical gold?

 

Edited January 6, 2022 by KevinFlynn

[harrygill111]

Alot of dealers sell pre loved stuff - call you might be surprised. Not as cheap as the forum. 

 

But the premiums, VAT, shipping and storage does hamper investment in silver. Gold is still good in the UK and will probably grow in popularity. 

 

 

[Centauri167]

The premiums in general on silver are crazy if you compare them to gold but when you sell them, you can recuperate a good portion of it in most cases.

If you go for silver coins with an extra high premium you can have the bad luck that when you sell them they will just be priced as a standard BU coin.

In my eyes, gold is a safer investment, but having also silver is more for the upwards potential it has. But stacking now for almost 10 years, it changed my opinion on silver coins with higher premiums and I try to avoid them, how good they may look and try to keep buying only the cheapest BU coins or junk silver.

[ArgentSmith]

On 06/01/2022 at 03:18, Ukbullionfan said:

Hey guys I just wanted to know why sites like bullion by post have such high premiums in silver especially when there’s VAT added to the total price too.

For instance the price of silver is around £17 per ounce at the moment. Most of the 1oz coins are around £24/£25 pound each then when you add on the VAT it’s hitting nearly £30 pound an ounce.

Why such high premiums ? It seems silver is an awful investment as it could take decades to even break even. Being in the Uk seems that physical silver would be an awful investment. Am I missing something ?

 Let's see here... Atkinsons are selling silver brits for as low as £23.30 per unit including VAT and delivery. So if you wanted to liquidate privately you should be able to get at least £21 pu.  And importantly you don't have to buy from a dealer, one would assume the price you pay on the secondary market ought to be close to what you can sell at?

Yes more leg work with Silver, more storage issues and Gold certainly has its advantages but Silver could potentially outperform gold by up to 100% making a G/S ratio of 40, be honest that's not crazy talk. But can anyone seriously see Gold outperforming Silver by 100% ie a G/S ratio of 160. (maybe but I wouldn't bet on it)

Premiums on fractional Gold especially the 1g bars, people buy them and pay crazy premiums imo. Royal mint are charging 50% over spot and that's without VAT. Amongst other things Silver serves as a surrogate fractional Gold.

Finally it took 25 years to recoup a Gold investment made in 1980 at the top of that bull market, so whilst not ideal VAT status is certainly not the be all and end all.

I could go on and on but don't want this post to come across as a rant... BECAUSE IT &$%&$ ISN'T!!!!! 🤣

[Centauri167]

6 hours ago, ArgentSmith said:

 Let's see here... Atkinsons are selling silver brits for as low as £23.30 per unit including VAT and delivery. So if you wanted to liquidate privately you should be able to get at least £21 pu.  And importantly you don't have to buy from a dealer, one would assume the price you pay on the secondary market ought to be close to what you can sell at?

Yes more leg work with Silver, more storage issues and Gold certainly has its advantages but Silver could potentially outperform gold by up to 100% making a G/S ratio of 40, be honest that's not crazy talk. But can anyone seriously see Gold outperforming Silver by 100% ie a G/S ratio of 160. (maybe but I wouldn't bet on it)

Premiums on fractional Gold especially the 1g bars, people buy them and pay crazy premiums imo. Royal mint are charging 50% over spot and that's without VAT. Amongst other things Silver serves as a surrogate fractional Gold.

Finally it took 25 years to recoup a Gold investment made in 1980 at the top of that bull market, so whilst not ideal VAT status is certainly not the be all and end all.

I could go on and on but don't want this post to come across as a rant... BECAUSE IT &$%&$ ISN'T!!!!! 🤣

Who buys gold bars of 1gr ??? Even if your budget is not big, buy a LMU coin with a premium of 2,5-4% or as you Britts like, a Sovereign.

I think you have to compare apples with apples and not with oranges. Compare the premium on a 1 ounce silver Krugerand with his one ounce golden brother and than you have a correct comparison. ( and with the silver one you have to add VAT extra in the UK )