Is silver a good investment?


The first problem with silver is that VAT is applied to purchases and so getting .9999 coins or bars is expensive. One has to pay considerably more than the spot price and so although the recent increase in the price of silver has closely followed that of gold, the premium one has to pay negates the chances of making a good profit unless your view is very long-term.

Second hand silver however, does not attract VAT and so second hand coins or silver bars are always a better buy.

However, the thing about silver is that it is presently one sixty third the price of gold and this means that relative to gold, silver is cheap - especially as some are saying there is more gold in this world than silver. It is consequently my opinion that as gold continues to rise it will become too expensive for many investors and they will switch to silver and this could mean that the price of silver will accelerate more quickly than the price of gold, at least until it reaches about one fortieth of the price of gold.

But what kind of silver could you buy that would make investing worth while?

This is a difficult question. But you could invest in pre 1920 British silver coins which are stirling silver or 92.5% pure. British silver coins form 1920 to 1945 are 50% silver and all American pre 1965 silver coins such as nickles, dimes and quarters are 90% silver. There is still a lot of this coinage around and so if you can get it at spot price then it could prove to be a worthwhile investment, especially as some dealers are quite willing to sell these coins at, or close to the spot price of silver.

However, please note that this is not investment advice, I am simply giving you an idea to think about and any final decision will have to be your own.


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To find the current spot price of silver you can go to kitco.com and on the right hand side of the page you will see a link to silver and the spot price per silver ounce on that page is quoted in many different currencies.

Best of luck.


I would also add that in my opinion, of which I have many, it would be a good idea for the government to take VAT off silver bullion as that would create a whole new industry of silver smelters and merchants. With the removal of VAT it would be worth people's while to invest in silver and so traders would respond.

---November 24, 2009---

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