Would you pay $37.5 per OZ right now?

S

SilverHunter

New Member
I bet your thinking that kind of premium is extortionate.

But nope.

If your living in the UK thats how much 1 OZ of silver costs right now.

Thanks to our governments very unjust 20% VAT on all silver bullion.

Now I am in a dilemma as to whether I pay that much or not since silver is at its lowest for years... My Question is would would pay that if you was as unfortunate to be a UK resident and had no other choice if you wanted to get your hands on physical silver? Or would you opt for gold instead which has no vat. I guess the 20% won't make a difference when silver go's to the moon, but still... What would you do?

Help me! What should I do???
 
I would get gold instead. Though I have heard things about specific coins that are VAT-free..maybe it was the britannia's?
 
Dustin said:
I would get gold instead. Though I have heard things about specific coins that are VAT-free..maybe it was the britannia's?
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Britannia's are still subject to 20% value added tax. They are however Capital Gains Tax Free (CGT Exempt) when you go to sell them.

The only problem I have with going the gold route is that on small amounts like 1/10th 1/20th coins and 1gram/5gram bars etc they have really high premiums.
 
Must have been a different coin. I heard something about a government minted coin or some silver coin that was VAT-free a while back. I could be crazy though :) haha

As for gold, I would go for 10 gram bars. They seem to have the best premiums for smaller pieces of gold. This is assuming you have the capital to get a few 10 gram bars. If not, compare the premiums you'd pay on the smaller pieces(5 gram, 1 gram etc.) with the premium you'd pay on silver, and go with the smallest premium.

Just my 2 cents. Make sure you do your research before making any investments, I'm just some random guy on a stackers forum, not to be confused with a financial advisor :)
 
Dustin said:
Must have been a different coin. I heard something about a government minted coin or some silver coin that was VAT-free a while back. I could be crazy though :) haha

As for gold, I would go for 10 gram bars. They seem to have the best premiums for smaller pieces of gold. This is assuming you have the capital to get a few 10 gram bars. If not, compare the premiums you'd pay on the smaller pieces(5 gram, 1 gram etc.) with the premium you'd pay on silver, and go with the smallest premium.

Just my 2 cents. Make sure you do your research before making any investments, I'm just some random guy on a stackers forum, not to be confused with a financial advisor :)
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Ok here's the prices im working with. Do you know which has the smallest premium (better value for money)?

1/10th gold coin at $158.47

4oz of silver at $150.35
 
theres 5 gram pamp gold bars available right now for 260/265 thats 7 percent premium and under 52 a gram.
If I lived in the UK Id avoid silver investment entirely its hard enough to make gains without paying tax any investment that charges you almost 30 percent in added fees and provides no extra income sounds like a tough investment plan.
 
158 seems cheap for 1/10 oz if its gov minted. thatd be my go you can always swap for silver one day and possibly avoid tax if it was f2f
 
bordsilver said:
Move to Norway
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Haha maybe one day, can't wait to get out of this forsaken place, the country is alright but the laws & goverment take the are something else! Think I'd prefer to move to the states or go downunder then norway though.
 
SilverHunter said:
bordsilver said:
Move to Norway
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Haha maybe one day, can't wait to get out of this forsaken place, the country is alright but the laws & goverment take the are something else! Think I'd prefer to move to the states or go downunder then norway though.
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We are headded down the same road as the UK you dont want to come here
 
Sargeant Argent said:
158 seems cheap for 1/10 oz if its gov minted. thatd be my go you can always swap for silver one day and possibly avoid tax if it was f2f
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Thanks I may just do that. The only thing i'm thinking though is if silver go's through the roof and starts heading for the moon their could be more potential gains to be had. :S
 
Getting more complicated, but a couple of one ounce gold blobs are only a bit bigger than the pound coins so they easily fit in the coin bit of your wallet. They don't get picked up by the airport scanners (or more accurately the operators don't seem to care much) and it doesn't matter much about having them banging around with your other coins (can just wrap a little bit of paper around them).

Hence when next on the continent I would have thought there wouldn't be any difficulty in bringing a couple of ounces back and save a few hundred quid.

Disclaimer: I have not done this yet when entering the UK.

Edit: ...and it's gold not silver :/
 
true but not when u factor vat youre already nearly 30% in the hole. Also any major spike in silver will most likely simultaneouly have a rise in the price of gold.

As for relocating maybe Canada no tax on .999 and as long as you dont mind a wanna be george bush as pm youll love it! ;)
 
Buy silver coins in Germany with 7% VAT there are many reliable dealers.
Amortise the typical Euro 25 shipping cost by maximising your order.
Alternatively take a look at offers at Atkinsons.
Avoid Guernsey's VAT free statement - you will pay 20% VAT PLUS handling fees unless your package slips through customs but if it doesn't you will get clobbered.
Buy gold if you can afford it - half sovereigns are my favourite if 3 or 4% above spot.
Smaller denominations will have much higher premiums but not as much as the 20% UK VAT on silver.
 
go on a holiday and buy big ass chunky gold chain necklaces and walk right through customs. you can buy 18kt or 23kt chunky necklaces or bracelets in places like thailand etc for spot plus less than 5% of i remember correctly!
 
that still doesnt make sense

spot + 10%

+20% tax

= $29 an oz

$37.50 is huge

If I was in england id be in it at $32 which wouldnt be too bad say 22 a OZ

Maybe junk silver is the way to go over there anything pre 1946 is 50% silver right ?
 
I have quite a bit of junk silver from the UK, it is nice to look at, has a bit of history and you can pick it up at boot fairs, so that is a 20% reduction straight away. I even bought some junk silver from a UK forum member and had it posted over to Oz, nice coins.

Most people have junk silver somewhere, even if it is just a couple of rolls of dimes in the US or pre decimal in the Uk or Australia, it isn't always the most sought after but over here you could buy it for less than spot price a few years ago and no VAT. Also very little is required to buy a coin, so if you just have a bit of money you can still make a purchase.

Just check that it is silver first, I have a load of predecimal NZ coins which turned out to be cupro nickel and some joker always adds a few UK non silver coins to bulk buys of coins!
 
volrathy said:
that still doesnt make sense

spot + 10%

+20% tax

= $29 an oz

$37.50 is huge

If I was in england id be in it at $32 which wouldnt be too bad say 22 a OZ

Maybe junk silver is the way to go over there anything pre 1946 is 50% silver right ?
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What shops are selling 1oz coins at only 10% premium atm?
 
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