Silver attracts more and more investors looking for a tangible asset, outside the banking system. But between VAT, volatility and the choice of formats, a few pointers help avoid beginner mistakes. Here’s the guide to investing in physical silver.
Why invest in silver
Silver plays a unique dual role: a precious reserve metal and an industrial metal (electronics, solar, medical). This dual demand explains both its long-term potential and its volatility, which is higher than gold’s.
Its strengths:
- Tangible asset, held outside the banking system, which cannot go bankrupt;
- Accessible entry point: an ounce or a small bar costs far less than an ounce of gold;
- Safe-haven value in times of uncertainty.
Its limits:
- No yield (no interest or dividend): the gain comes solely from the price;
- Marked volatility;
- 20% VAT on purchase in France (see below).
The 20% VAT, the point not to forget
Unlike investment gold, which is exempt, silver is subject to 20% VAT on purchase in France. It is the main cost item: the price must rise enough to “absorb” this VAT before any capital gain. This point is detailed in our article on the VAT on investment silver.
Which format to choose
The format is a trade-off between entry cost and liquidity:
- Large cast bars (1 kg, 5 kg): the lowest premium, ideal for a wealth-preservation core;
- Small minted bars, ounces, CombiBar: more liquid to resell, but higher premiums.
Rule: the smaller the format, the higher the premium per gram. See cast bar vs. minted bar and silver bar or coin.
Choosing a recognized brand
Buy a bar from an LBMA-accredited refiner (PAMP, Valcambi, Heraeus…): it’s the guarantee of purity and smooth resale. Our comparison: best silver bar brands.
Silver or gold?
Silver is more volatile and more accessible; gold is more stable and VAT-exempt. Many investors combine the two. We compare them in detail in silver or gold: which to choose and through the gold-silver ratio.
Storing and reselling
- Storage: home safe (check the insurance), bank safe deposit box, or secure professional storage — see storing your physical silver.
- Resale: keep the seal, certificate and invoice to avoid the “doubt discount”. Full method in selling a silver bar at the best price.
In summary
- Silver = tangible asset, dual demand (precious + industrial), volatile and without yield.
- 20% VAT on purchase: to factor into the profitability calculation.
- Trade off the format between entry cost (large bars) and liquidity (small formats).
- LBMA refiner + preserved seal = smooth resale.
Ready to get started? Check the current silver price and find your city to buy or have your silver appraised.
This article is informational and does not constitute investment advice.