Buying physical silver

[emery1990]

Hello,

Is it worth buying silver bars or coins? I was thinking of buying some each month but got put off by the prices.

£24 would get you a 1oz silver Britannia coin but resell is at £18, so I would need silver to go up quite a lot to break even.

Or is it the fact that you would normally keep these coins for a very long time, say 10 years?

 

[Chad Seven]

I started buying silver regularly in 2015 and in seven years my gains are nothing to write home about. You would think with the prospects of nuclear war and rampant inflation the price would be exploding higher right now but what do I know about financial markets.

If you are looking to speculate on the price then an ETF will be cheaper than holding physical.

If you do want to buy physical silver then sterling coins are exempt from CGT while bars are not (only of concern if you based in the UK)

 

[Chad Seven]

Not to sound condescending but if you got the idea of buying silver off one of these silver enthusiasts on YouTube they have been predicting three digit silver for decades. I suppose eventually they will probably be right.

 

[Sharky]

Another option if you're considering the non-physical is to buy silver futures via a spread betting broker, also exempt from CGT and the borrowing costs on futures versus cash, are reasonable. Just don't get carried away with the leverage.

 

[timsk]

Anyone buying physical silver needs to have clear reasons for doing it. As an investment - as with gold - it's highly speculative. It almost certainly will go up considerably over time, (it's currently undervalued by historical levels), but it could easily tank in the interim. I've advised my nephew in his early 30s to buy a 1oz silver Britannia every week in perpetuity. That'll iron out any peaks and troughs and, by the time he's my age (60s), he'll be sitting pretty.

The main point of physical silver and gold is that its real money with inherent value, unlike fiat currency which, ultimately, is pretty worthless. When the dollar goes tits up - which I believe it will (with a little help from Mr. Putin who is cleverly pegging the Ruble to gold), then anyone holding precious metals will do very well. And for those that fear the whole financial system will crash, then silver is definitely the way to go.

For anyone wanting an introductory guide into investing, collecting and stacking physical silver and gold - I've found this chap pretty good:
A Complete Guide To Investing & Stacking Gold & Silver | Part 1 - Why Do You Even Want To Stack?!
Tim.

 

[timsk]

Hello,
Is it worth buying silver bars or coins? I was thinking of buying some each month but got put off by the prices.

Don't worry about the prices - see my post above.

£24 would get you a 1oz silver Britannia coin but resell is at £18, so I would need silver to go up quite a lot to break even.

That only applies if you're selling to a dealer at spot. Try buying one on eBay for that. (If you find one, let me know and I'll buy it!)

Or is it the fact that you would normally keep these coins for a very long time, say 10 years?

Tim.

 

[positivity]

A rebound is expected