Investing in silver: what you need to know

Silver is within reach from just a few tens of euros, but it calls for a different approach from gold: VAT, a higher premium and a more volatile price.

VAT

Unlike investment gold, silver bars and small bars are subject to VAT at 20 % in France; our silver coins are exempt. The displayed prices of bars include it. This is the main reason why the gap between the price of a silver ounce and the value of the metal is wider than for gold: on an ounce at around 82 €, roughly 13,60 € is VAT, which cannot be recovered when you sell.

The premium

Minting a coin costs roughly the same whether it contains gold or silver, but on a metal 50 times cheaper, that cost weighs more heavily. The premium excluding VAT on a modern silver ounce is between 6 and 12 %; on an old French coin (Hercule, Semeuse) it is generally lower, at around 5 to 8 %.

Volatility

The price of silver moves more sharply than that of gold, in both directions, because half of the demand comes from industry (electronics, solar panels). Over ten years, it has seen annual swings of more than 30 %. It is a metal to hold for the long term rather than to trade.

Tax on resale

The same as for gold: a flat-rate tax of 11,5 % on the sale price, or tax on the actual capital gain on presentation of the invoice. See the guide on gold taxation for details of both regimes.

Volume

1 000 € of silver is about 12 ounces, i.e. 400 g and a small box. 10 000 € is 4 kg: plan your storage accordingly.