Paying VAT on silver...is it worth it?

[campbellgs]

Hi all,

I'm new here and wanted to know people's thoughts on buying silver and paying the VAT for it, does this totally negate it's potential returns.

The price would need to rise 20% just to break even

[FFkook]

Hi and welcome here!!!!

4 minutes ago, campbellgs said:

The price would need to rise 20% just to break even

And there I think is your answer...

Unless you're selling to people in stead of shops, most prices break even with that on bars... 

[Fastnick]

Welcome! You'll find almost everyone here on the Forum only too happy to help with advice and information when you're getting started.



Keep an eye out for the next Group Order that Backyard Bullion very kindly organises on our behalf; by joining in with one of these, you can safely and securely order the cheapest silver in Europe, as well as benefitting from shared/reduced shipping costs.



 

[sixgun]

We all know the problem with silver in Europe. Many members buy from the likes of goldsilver.be, European Mint and the various German dealers like Silver-to-Go.

The prices of goldsilver.be tend to be the best. If you have bought a decent number of coins the postage per coin is not such a lot and you would usually get your money back by selling privately, you might make a few pence on ebay with a fair wind.

The Gold to Silver ratio is very high at the moment - it has been over 80 for months. Generally when it has been at these levels the precious metal markets rally and the GS ratio falls. The GS ratio has been up to 100 in the past so it could rise further. If you believe history will repeat and the GS ratio falls then silver is a good buy.

Silver is a long term investment. You can flip coins which are very popular. i bought 60 odd Queen's Beast Lions when they came out - i got them from Silver-to-Go i think. i have probably made 50% on them but these are perhaps an exception.

i will repeat Silver is a long term investment. If you behave otherwise you may well lose money. i see members here buying coins and then selling them a few weeks or months down the line. Often they sell for a loss.

If you don't think you can hold for 10 years or even more then buy gold sovereigns.

[Pete]

As you gain knowledge - and there is a lot of help on this Forum - you will quickly discover that you don't have to pay 20% VAT on silver coins.

[campbellgs]

Cheers guys,

 

Yeah for me stacking any precious metal is a long term investment, if I were to buy silver and it would need to be VAT free for me to do so, I would flip the silver when I felt the returns were worth it and re-invest in gold.

Curious as to what other people's strategies are

[sixgun]

As Pete says you don't have to pay the 20%.

Buy coins off the forum -

Join the group order Backyard Bullion organises with goldsilver.be or European Mint.

You can if you are persistent get a refund on VAT from HMRC - i have never done it as i have only ever got clobbered once and the pirates did not recognise what was sent so they only stole a small amount from me. There is a thread about this - as i remember Pete has been successful at this.

 

[sixgun]

3 minutes ago, campbellgs said:

Cheers guys

Yeah for me stacking any precious metal is a long term investment, if I were to buy silver and it would need to be VAT free for me to do so, I would flip the silver when I felt the returns were worth it and re-invest in gold.

Curious as to what other people's strategies are

So are you saying you are playing the Gold to Silver ratio?

Some members buy silver when the G:S ratio is high and so silver is relatively cheap and then they sell the silver to buy gold when the ratio falls.

Be an opportunist - buy what appears to be a good deal - a good price.

At the moment i have a lot of silver - some would say too much and i am picking up sovereigns here and there, mainly off the forum.

In my opinion if you are starting out, read the forum, get a feel for things. There are silver coins being sold here for sale at £14 each at the moment, sometimes a bit less. Think about the postage costs. If you get some you will get some silver under your belt. Be aware quite a bit of this bullion silver will have milk spot or will develop milk spot, so you should very much see it as basic silver with little numismatic value.

The other tack is to get sovereigns. They are easy to sell, the basic ones come near to spot and you won't have storage issues. i keep some gold behind a small section of skirting board. No-one would ever know it was there, as safe as a secure vault.

[silenceissilver]

I have not been stacking for a long time so I can't add a lot to the advice of the experienced stackers. This being said, I have started with buying VAT silver and only today my first parcel I bought via this forum has arrived. (No one was at home, so I can't give feedback yet, but I'm confidend I will be able to give the seller good feedback as no one else complained about him).

Is VAT silver worth it, let's say in case buying it from Europe at lower rate will get very difficult - for me, the answer is a clear yes as I am in for the long run and I think silver will multiply in price and 20% more or less now won't play a role in the long run. That's only my opinion of course and no financial advice.

[Pete]

I am worried about rising sea levels since my silver stack is sinking the earth ... ha ha
No-one knows the future prices of metals.
More likely than not silver is cheap compared to gold but when an elderly friend of mine sunk most of his pension pot into Brent North Sea Oil at the time of rising prices and global shortages, his investment decision was made on the fact that there is a limited amount in the ground and the demand will continue and continue to rise.
I think the price was nearer $150 a barrel at the time - ouch !!
Could this happen to gold - maybe

[sixgun]

44 minutes ago, Pete said:

I am worried about rising sea levels since my silver stack is sinking the earth ... ha ha
No-one knows the future prices of metals.
More likely than not silver is cheap compared to gold but when an elderly friend of mine sunk most of his pension pot into Brent North Sea Oil at the time of rising prices and global shortages, his investment decision was made on the fact that there is a limited amount in the ground and the demand will continue and continue to rise.
I think the price was nearer $150 a barrel at the time - ouch !!
Could this happen to gold - maybe

No - i have posted elsewhere about this. Oil is created inside the Earth. It is not a fossil fuel. It does not come from rotten vegetation or animal matter. There are limitless amounts of oil. We will never run out. Dry oil well if left fill up again.

There is not limitless gold - it is possible to create gold and other metals using the Hutchinson Effect but it suspect that is more expensive than gold naturally found.

[Pete]

21 minutes ago, sixgun said:

No - i have posted elsewhere about this. Oil is created inside the Earth. It is not a fossil fuel. It does not come from rotten vegetation or animal matter. There are limitless amounts of oil. We will never run out. Dry oil well if left fill up again.

There is not limitless gold - it is possible to create gold and other metals using the Hutchinson Effect but it suspect that is more expensive than gold naturally found.

I am no expert so stand to be corrected but I though crude oil was a fossil fuel created by the bodies of swamp creatures, algae etc many hundreds of millions of years ago.
Coal ditto but from vegetation. Not so sure dry oil wells fill up again otherwise they wouldn't be abandoned. Due to the depth of wells and the loss of pressure with extraction there remains a lot of oil in a well but it is too expensive to bring to the surface.

Relatively speaking there is limitless gold only trickier or impossible to find.
Buried hundreds of miles under the Earth's crust there are liquid metals and why shouldn't some of this magma contain gold ?
It originates from supernova explosions so more than likely the moon is covered in gold as well.

 

[sixgun]

Most everything you have been told is a lie. Oil is not a fossil fuel.