Your Questions About How To Invest In Silver

Richard asks…

How to invest in silver in UK without VAT?

So bullion silver in the UK is not tax exempt unlike gold bullion, gold coins or silver coins is. Sites like bullionvault offer tax free silver because you can invest in international vaults but you don’t physically own the product. I found goldline.co.uk who offer good bullion prices, but paying £600 in VAT per order is not fun. Some people have suggested taking a trip to Switzerland to buy it over the counter at banks, then post it home.

What are your experiences in investing in the UK as its much cheaper to do it in other countries.

Also i’m not interested in gold bullion, does not have as great future potential in the long run with the way the global economy is going and the amounts of silver being used in industry.

Thanks, Dave.

John answers:

Why the need to hold it? Why not just invest in silver certificates or in funds that mimic silver bullion. You’ll pay a larger spread to hold as the silver will no longer be in registered vaults so there’s the risk of re-assaying. The argument for VAT on silver is that it has a myriad of industrial uses and hence value added is intrinsic to it’s trade. I would agree that silver is much better as an investment then gold but it’s hardly the best investment and clearly you’re not buying it solely for investment if you wish to hold it.

Maybe use a social network to friend someone who will buy it over the counter and post it to you. Of course, if it gets found in the post, you may lose the bullion. The UK is a great place to not have an income as they only tax on domestic income so the trick is to arrange for all your sources of income to be offshore and have the UK as your taxation residence. Such an approach to avoid taxes can work for Canadians but not Americans as the US taxes on citizenship regardless of your residence.

George asks…

How do you invest in shorts?

Im 17 and I have already started investing in silver. I started buying it when silver was at 27 dollars an ounce so I’ve already made quite a bit of money. When I’m 18 im planning on getting a brokers account. But I dont really get the concept of investing on shorts, I know it has something to do with betting on if the stock is gonna go up or down but I’m not sure

John answers:

You borrow a share from your broker for a fee and you sell it. You either continue paying your broker or you buy a share later to cover your position. If the stock price goes down between selling it and buying it back, you make money, if not, you lose money.

Donna asks…

How do you use gold and silver?

Hey i’m only 18 and have no job 🙁 It’s hard to get one and it sucks. Well anyways,, I’ve been thinking that when I do get a job, I”m BIG on saving Btw, Anyways, I was think to invest in silver more then gold. But I want to know how to use them. Can anyone please tell me out to use gold and silver?
NOT what you buy how do I USE it?
Like using silver coins

John answers:

Gold and Silver are a commodity, like oil or pig bellys. You buy them to hold in the hopes that the price will have gone up when you sell them.

You don’t actually spend the gold or silver. You spend the dollars you get when you sell them.

Steven asks…

Is investing in gold or silver a wise investment in this age of uncertainty?

Hi all, Any good advice on gold investment vs other investment ? How about investing in Gold certificate, gold savings account or buy gold bullion coins. What the difference & Which is a better choice ? Is investing in silver a good choice now as the price is very low compare with gold. I will never trust in Unit trusts as 100% of my investment has gone the drain, so now trying to DIY. Hope to hear from any guru 🙂 Write from the city of Singapore.

John answers:

Plenty of uncertainty around. I live in the USA, and despair at the clearly inflationary policies. As such, I think that gold and silver will hold value during times of inflation far better than cash, stocks, or bonds.

The problem with certificates and savings accounts is that if things really go wrong, you are holding a piece of paper. There are downsides to owning physical gold, too, but I feel those are more addressable.

I don’t know your circumstances, so I am reluctant to tell you to invest everything in gold and silver. However, if you don’t need to get at the money for a year or two, I would recommend exactly that. I feel that both will appreciate nicely.

Hunt up a coin shop near you. If you find one that will sell you bullion coins at a small premium over spot, cultivate a relationship with those folks.

Grandpa

Mary asks…

Investing in Silver In India at this time ?

Guys , I need to know if it will be wise to invest in SIlver in India at this point of time ? The rates of the metal are already 53-54 thousand. If yes , how much increase would you predict in the next 2-3 years ? I am concerned the price may stop rising soon.

Please advise me !

John answers:

As long as these 2 things continue to happen, the value of silver will only continue to increase
1) governments of the world continue printing ‘fiat’ money – backed not by hard assets like gold but backed only by debt. The more money they print, the less value the existing money has – therefore it takes more rupees to buy the same silver than it used to

2) the world is running out of silver – nearly all of the silver that has ever been mined in human history has been used up – lost forever to the landfills of the world in throwaway electronics and other industrial uses. It is not economical to recycle silver, therefore the only way we can produce more silver is dig it up, and we are running out of known silver ore deposits. The USGS predicts at the current rate of usage the world will run out of silver by the year 2020

Silver is probably the investment opportunity of a lifetime. The fact that most people tell you its not a good investment is actually a good sign – most people don’t know about the investment opportunity in silver yet so its not too late to buy. When everyone you talk to are all excited about buying silver, then perhaps it will be time to sell.

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