Gold and silver are the two major precious metals for investment. They share safe-haven status, but differ on decisive points: taxation, volatility, entry point. Here’s how to choose — or combine.
Difference no. 1: VAT
This is the most structural point in France:
- Investment gold is exempt from VAT.
- Silver is subject to 20% VAT on purchase.
In practical terms, the same amount invested “starts” with a higher cost handicap in silver than in gold. The silver price must rise more to break even. This point is detailed in the VAT on investment silver.
Volatility
Silver is more volatile than gold. Its price can rise faster… and fall harder. This volatility comes from its dual use: a precious metal and an industrial metal (electronics, solar), highly sensitive to the economic climate. Gold, on the other hand, is above all a monetary reserve asset, more stable.
- Gold: stability, capital preservation.
- Silver: higher potential for gain (and loss), a more dynamic profile.
The entry point
Silver is far more accessible: an ounce of silver costs a fraction of an ounce of gold. For a small budget or to start gradually, silver makes it possible to buy physical metal without tying up large sums. See investing in silver.
Liquidity and storage
- Liquidity: gold and silver from major refiners resell well. Gold has the advantage of very concentrated value.
- Storage: at equal value, silver takes up much more volume than gold (it is far less dense and far cheaper per gram). Storing €10,000 of silver requires more space and precautions than €10,000 of gold — something to anticipate (see storing your physical silver).
The gold-silver ratio
Investors track the gold-silver ratio (how many ounces of silver for one ounce of gold) to judge whether silver is “cheap” relative to gold. It’s an indicator for arbitraging between the two metals, detailed in the gold-silver ratio explained.
Do you have to choose? Often, no
Many investors don’t decide and combine the two:
- gold as a core of stability and preservation;
- silver as a driver of performance and an accessible complement.
The allocation depends on your time horizon, your risk tolerance and your budget.
The comparison at a glance
| Criterion | Gold | Silver |
|---|---|---|
| VAT (France) | exempt | 20% |
| Volatility | lower | higher |
| Entry point | high | accessible |
| Industrial use | low | strong |
| Bulk (at equal value) | low | high |
In summary
- Gold = stability, VAT-exempt, high entry point, compact.
- Silver = potential + volatility, 20% VAT, accessible, bulky.
- The gold-silver ratio helps arbitrage between the two.
- Most investors combine the two according to their profile.
For silver, check the current price and find your city to buy or have your metal appraised.
This article is informational and does not constitute investment advice.