Latest update; 06-October-2020
Our No.1 request from UK silver collectors has been for information about the different forms of ‘VAT Free Silver bullion’ and how to find good vat free silver deals from coin dealers or private sellers here in UK, especially after the 2020 Brexit! Here’s our opinions, silver forecasts and updates including pricing information for buying and selling silver bullion coins without incurring the VAT.
All information contained herein is editorial, experience and opinions, it should not be ascertained as personal investment advice. Our primary business is assisting private and trade purchases or sales of silver coins and bullion here in the UK. Since we are not affiliated to any one commercial organisation, nor do we sell large quantities of silver ourselves, we are free to report on and assist you with all aspects of the silver trade.
Sept / Oct 2020
Very interesting looking back at my last six months views and perspectives! as spot silver reached close to $30 and is right now consolidating once again around the $26-$27 range. I’m now long term super bullish silver! I will elaborate in more detail as the current prices settle down and hopefully there’s a return to a more balanced supply of the physical metals which especially in the case of silver have seen restricted supplies from various world mints and wholesale suppliers, as well as a generally tight retail side – buyers are buying but sellers are also holding on longer.
Silver consolidating around £19 UK / $24, means that 1ounce silver bullion coins are looking a little more attractively priced around the ranges; £24 retail and £26 trade. (we can assist with sales, if you’re looking to sell) or buy!
There are mixed forces at play in the precious metals trade. On one hand the world coronavirus is creating fear and flights to the safety of precious metals, driving up prices, whilst global recessionary forces are reducing industrial demand. This could take many months to resolve, with highly volatile price swings during 2020. Ultimately the world is awash with debt and ever increasing currency printing which throughout history always results in fiat money devaluation compared against precious metals.
Silver price update for January – February 2020
As anticipated Silver prices have consolidated! and are back into an appreciation pattern which are now re-targeting $18 to then set up a bullish chart pattern towards our 2021 silver price target of reaching $21 / ounce. (spot / futures paper prices) Dec 2019 Silver spot prices are in a consolidating pattern currently around $16.70-$17.00 / ounce (Comex futures paper prices)
2020 Britannia 1 ounce silver bullion coins are available, VAT free, free UK Special delivery. Physical coins which you own in your possession. Britannia £2 silver coins are legal tender in the UK and is therefore Capital Gains Tax Free, CGT Exempt. The UK Mint Britannia coins contain one Troy ounce of fine 999 silver bullion. *currently available to pre-order with 1-3 week delivery schedules, as at Sept 2020.
A cautionary note regarding VAT free silver coins for storage outside the UK: Personally, I would be cautious of the value and investment potential offered by bullion dealers who are providing ‘vat free silver coins for overseas storage‘ or ‘reduced premium silver coin prices’ for allocated overseas storage. This form of holding silver means that you do not physically have possession of the silver bullion coins yourself. Hence when you want to re-sell the silver coins you are:
A/ restricted who you can re-sell the silver to, meaning you’ll probably only get close to spot price, loosing most if not all of any premium you’ve paid for coins.
B/ If you want to actually take physical delivery of the silver bullion coins so that you can re-sell on the open market, you may then incur the additional 20% VAT if you want to take actual delivery and ownership in the UK, plus shipping cost! see notes below for more information.
Silver stacking context: As a fellow silver bug and silverstacker I have compiled useful information learned from my own experiences collecting silver bullion coins and bars since 2009 when I purchased my first significant batch of Sterling 925 silver bullion coins. More silver stacking followed in 2011, although with silver doubling in price from around £10 per ounce to over £21 per ounce, I was then paying around £29 per ounce for the China Mints 3-999’s silver Panda coins to join my existing collections of older pre-1920’s .925 Sterling silver.
2014 experienced good silver bullion demand and historically low spot prices with further purchases of VAT free silver; the 2014 limited issue privy editions £2 bullion Britannia which the UK Mint initially released to the VAT free USA and European wholesale bullion trade and wholesale coin markets.
In 2011 with silver at £21 / $27 per ounce – there was strong interest and growing demand for real physical silver bullion. What followed was almost constant short selling of paper derivatives and paper futures contracts on the comex market which constantly drove the spot silver price back towards the £10-£13 ($13-$16) levels, ultimately creating another unique opportunity to accumulate physical silver at historically attractive prices.
My Silver price predictions for 2020 – 2021 – price guesstimates are just a personal target!
Silver prices in 2020 look to be resuming the physical silver bull market as prices re-break the trend line and cleared $16.80 – there’s a lot of clear chart space above for silver to re-gain a more respectable 80/1 ratio and longer term targeting historical silver/gold ratios silver would still represent good value compared to it’s physical mining ratio which is around 11/1.
*This will also need an update – since we reached and surpassed our initial targets, quicker than anticipated! when sister silver moves – she really moves!
At $1500 gold – a relatively modest 70/1 ratio makes silver valued at over $21 per ounce.
With silver mined and found naturally in the ground at a ratio of 11/1 – I believe we will once again eventually see physical silver bullion trade over its $50 previous high.
Is there VAT on UK Silver coins? and is it worth paying VAT buying silver bullion in the UK?
Whilst silver attracts VAT – it is only chargeable by business sellers who are over the threshold and required to charge vat.
With the growing popularity of the newer .999 pure silver bullion coins It can appear a complex market when it comes to sourcing these silver bullion coins in GB at a fair price in relation to the silver spot price and that’s before UK dealers add in their selling margins and the VAT! Buying silver bullion coins from dealers with secondary market lower taxed silver, dealers in lower tax jurisdiction locations or even better directly from fellow private silver investors who are looking to sell directly is usually the best way to find the lowest costs per ounce.
How buying silver bullion coins at best per ounce prices improves our overall investment potential.
Tip No.1 – keep it simple, trade direct, deal with trusted sellers with reliable reputations supplying fair priced silver bullion coins. Silver is a natural element symbol Ag. which has performed a perfect role as a natural, reliable, trusted form of money for over 4000 years, enabling people to conduct trade directly between buyer and seller, person to person. Aim to eliminate as much of the supply chain and complexity from buying your silver coins as possible and you’ll discover how to lower your overall silver costs per ounce.
Tip 2. Silver Premiums always disappear with time, in the long run most value investors tend to price silver in relation to the spot market bullion price plus a reasonable coinage premium. Unless the coins are really scarce and sought after, the lower the initial premium bullion you pay, the higher your gain on resale. As a general rule you will make more money on silver bullion from buying coins as close to ‘bullion spot’ as possible, than simply hoping that a huge rally in silver prices will help you recover higher priced, taxed premium coins.
The silver market has evolved a lot over the last 10 years with plenty of new releases joining the pure 999 silver scene! I’ve got some exciting projects underway to help fellow silver-stackers gather accurate up to date information as well as share my insights into buying silver at the best possible prices whilst always keeping a fine eye on what to buy and just as importantly how and where and to re-sell your silver coin investments without loosing a good proportion of your investment to taxes, commissions and selling fees!
2020 Silver bullion buyers & sales hub
As we develop CoinsUK SilverHubs further, there’s lots of silver knowledge and trading tips that I’m alway happy to share and help fellow UK coin buyers with, as more than ever in 2020 the silver bullion market has huge choice and price variation. The good news is that it really doesn’t need to be complicated, keep things simple, gather and share trusted information, experience and sales facilities – all things I’m working hard to share whilst I work with both the silver industry and retail to improve silver’s appreciation and hopefully a steady return to more awareness for silvers true role as the ultimate global ‘sound money’ and store of value.
Dealing with us at COINSUK & verified retail silver sellers at SilverHubs has several advantages over the larger GB based bullion dealers, which enables you obtain fair priced coins competitively in the UK without adding un-necessary VAT and sales taxes to the sale prices.
I buy silver bullion in trade bulk, both new issues directly from official Mint suppliers, as well as secondary market silver which is usually just as new, safe stored in original Mint tubes. As a small business with an active interest in the silver industry, I share the savings with fellow collectors enabling you to deal person to person sharing my resources and experience to help lower your own silver bullion costs.
As a UK based SMB we can currently trade under the VAT fresh-hold, which means silver coin collectors benefit from silver bullion coins without added UK VAT = lower priced silver coinsHow to buy silver coins without VAT – COINSUK zero vat on UK silver coin sales
As a fellow silver coin fan – slightly frustrated by the Uk’s confusing silver coin market, I have compiled a guide to buying silver bullion coins and bars at fair low prices without Vat in GB.
COINSUK also trade with silver buyers and sellers of VAT free secondary market collectable silver bullion coins which we can sell at low margins. Our UK silver bullion coin stock includes a comprehensive selection of the main World Coin Mints, including; 1oz silver Britannia, Silver Maple-Leaf, 9999 Aus Silver Kangaroo, SA Silver Krugerrand, Dragon silver 1ounce bullion bars, plus various larger sized 5 ounce and 10 ounce silver bullion coins.
Specialists in VAT free UK Mint Britannia £2 silver bullion coins
COINSUK offer you a fast assured low cost source for your UK silver bullion coins. We have bulk silver bullion available for fully insured, free next day delivery. Assured quality checked and official Mint distributor sourced silver bullion coins.
Taking delivery of physical silver bullion saves storage costs & counter-party liabilities
There’s a saying in precious metals forums – “If you don’t hold it – you don’t own it!”
Whilst the lure of VAT free offshore stored silver coins and bars sounds appealing, it usually comes with a couple of significant catches; 1. There’s a monthly storage fee & 2. If you ever want to physically get hold of your silver in times of financial turmoil, they’ll be extra shipping costs as well as any relevant vat and taxes to pay once you opt to take delivery. Most ‘allocated platforms’ also have fees or a buy/sell spread.
The simplest, safest way to buy and hold silver bullion is to buy popular internationally recognised Minted coins which are easy to re-sell, small units of easily tradable silver like Britannia, Krugerrands, Dragon bars etc. Buy from a non registered or VAT free seller and take physical ownership at the lowest cost per silver ounce you can secure.
If you would like more information about lowering your silver bullion costs, or how I can help you you are always welcome to get in touch with me for a friendly chat by phone or email.
Further reading – silver coin selling information and contacts
Secondary market vat free silver coin sales – info about buying vat free silver bullion coins and bars