Is silver a good investment?

Historically, silver has played an important role as a means of payment, a raw material and served as a safe haven in times of economic uncertainty. Although silver is no longer used as a means of payment, it can serve as a means of exchange in some cases. In addition, the demand for silver as a raw material increases annually. Silver is an interesting investment for investors. We would like to tell you more about this.
 

Investing in silver

Silver is a commodity whose reserves are finite. The demand for silver will only increase, after which shortages can be expected. This makes it increasingly popular to invest in physical silver.
 

Inflation protection and intrinsic value of silver

Investing in precious metals such as gold and silver is a popular way for investors to protect their wealth against inflation. This is because silver has intrinsic value that is independent of fiat currencies and third parties such as banks. The instability of the current financial climate has little effect on the value of physical silver.
 
In addition, silver is widely used in various industries, which is why the demand for it continues to rise. More than half of the annual silver mining is used in everyday products such as batteries, medicines, telephones, engines and solar panels. Silver is also widely used in jewelry.
 

VAT when investing in silver

Because silver is considered a raw material, 21% VAT must be paid on it. This makes silver seem a less interesting investment for private investors compared to VAT-free investment gold. Nevertheless, there are ways to purchase silver without VAT.
 

Silver coins

For private investors, silver coins are an interesting investment because they fall under the margin scheme. This scheme means that only the trader has to pay VAT on the profit of the silver coins.
 

Silver bars

On the other hand, 21% VAT is paid on silver bars. For our business customers, silver bars can be an interesting way to secure the assets of their B.V. The VAT can be reclaimed.
 
In addition, it is possible to buy VAT-free silver bars in combination with storage in a customs depot in Switzerland. In this case, there is no VAT because the silver does not enter the Netherlands. You benefit from the lower premiums and buy-back guarantee, but you do not have the silver in your own hands.
 

Coin bars

You can invest in silver in the form of silver coin bars. They look like a silver bar but have the status of a coin, which means they have a nominal value and are subject to the margin scheme. This is possible because a coin has been minted in the bar.
 

Current silver price coins and bars

The silver price, unlike gold, is quite volatile with large swings. In 2011, the silver price was €1,057 per kilo, the highest it has ever been. Today, the price per kilo fluctuates around €700.
 
Silver coins and bars can differ in price due to premiums, VAT and production costs. Silver coins are relatively cheaper for private investors because they do not have to pay VAT. Silver bars can be cheaper if they are purchased in combination with storage in Switzerland because they are VAT-free in that case and bars have lower production costs than coins.