The silver Britannia has won its place in British coinage history as one of the most iconic UK coins to be ever released. The coin was introduced in 1997 and had a fineness of 95.8% in its original issue. The 1-ounce silver coin reflected the design elements of the original gold Britannia, which was introduced by the Royal Mint 10 years earlier. The popularity of the gold Britannia prompted the Royal Mint to start minting a similar coin using silver. Within two years of its release, the fineness of the silver Britannia had been increased to 99.9%. Needless to say, the 24-carat silver coin enjoyed immense popularity amongst collectors and investors alike.
The image of Britannia used in an earlier British coin
The iconic design
The silver Britannia, like its gold counterpart, features the classic image of Britannia on its reverse. The Britannia icon was possibly conceived as early as Roman times. It is the image of a goddess warrior, carrying a shield and a trident. This classic image is a testament to the spirit and bravery of the people of Britain. The design elements used in the silver Britannia coin was created by the famous designer, Jody Clark. The obverse of the coin features an image of our reigning Queen, Elizabeth II. Since its issue, the coin has seen some changes in design and mintage with different weights and dimensions.
Silver Britannias are the most popular silver investment coin in the UK. They represent very good value as they are mass-produced to bullion finish which keeps production costs low. They are legal tender, so any gains made are also tax-free.
Investors are keen to invest in silver coins, like this USA silver dollar bullion coin
The value of a silver Britannia for an investor
The value of the coin is dependent on the spot price of silver. As a thumb rule, the coin can fetch a sale value of approximately the 1-ounce silver spot price. Generally, the sale price would be just under the spot price of silver, unless the coin commands a premium due to a collector’s edition. The bullion version of the coin is mass-produced and attracts low premiums. In addition to this, bulk orders of the bullion coin can qualify for attractive discounts, when buying from a reputed dealer. The best part is that the silver Britannia offers investors an incredible opportunity to enter the precious metals market at a lower price point. On the other hand, the gold Britannia is a prohibitively expensive coin to buy.
The rising price of silver
One of the reasons that the coin has enjoyed popularity amongst investors is the expectation that silver prices will eventually rise in the future. The use of silver in industrial applications has grown over the years and will continue to rise in the coming years, as electronic cars, solar power solutions and other electronic products continue to dominate the marketplace.
However, the production of silver has dipped over the years. Market experts believe that a price rise is imminent for silver, and investors who purchase silver Britannia coins today can expect to book healthy profits once the price of silver reaches its peak.
The precious metal experts at Physical Gold can advise you on buying silver coins
Physical Gold is one of the country’s most reputed gold and silver dealers, who offer free advice to precious metal investors. Call us on (020) 7060 9992 or drop us an email by visiting our website, and a member of our team will be in touch with you to discuss your silver investments.
Silver has been witnessing healthy interest from investors over the past few years. Many investors who want to enter the precious metals market opt for silver investing, primarily due to the difference in the price between gold and silver. Indeed, the silver-gold ratio has provided investors with a great reason to buy the white metal. Historically, gold has always been more expensive than silver and not long ago, the attractiveness of silver was based on the fact that it was 85 times cheaper than gold.
Silver has the potential for capital appreciation due to rising demand and naturally limited supply as a precious metal. Silver investment is cheap relative to buying gold and has no counterparty risk when bought in coin and bar form. It can rise in value as a safe haven during volatile stock markets, but also benefit from increased industrial demand for silver during technological booms.
Silver bars are popular amongst investors
As the COVID 19 pandemic draws on, volatility has increased in both the prices of silver, as well as the gold-silver ratio. In March 2020, the ratio jumped to a high of 125:1. Currently, it has come down to 87:1. The price of gold itself continues to rise and has reached levels of $ 1771 per ounce. As geopolitical turmoil has adversely impacted the global economy, investors have rushed to protect their assets by turning to gold, which is always viewed as a safe haven. Interestingly, the current price of gold is slowly inching upwards towards the all-time high mark, which was $ 1917 per ounce.
Silver performance over the years
Of course, silver investing isn’t simply dependent on the gold-silver ratio. If we look back over the last 10 years, we can see that silver investors were rewarded with good returns for many of those years. Silver has also acted as a safe haven, much like gold. The spot price of silver reached $48 an ounce back in 2011, during the height of the last global financial crisis. If we compare gold and silver prices over the long-term, we can see that silver has always tracked gold, which is a significant reason for investors to invest in silver.
Tax considerations
Purchasing silver coins that have a face value in the UK can deliver tax relief to investors. Silver coins which are legal tender in the UK are Capital Gains Tax (CGT) exempt. There are certain silver bars that can also be purchased without paying VAT. In fact, one such bar is available from Physical Gold.
Silver coins are available in different denominations
The rising demand for silver
The price of silver is expected to rise significantly due to the increase in its demand. Silver is an essential component that is required for applications in many industries. The market for products like solar panels, electronics and electric cars is on the rise. Due to this, there has been a surge in the demand for silver over the past few years. However, the production of silver has also fallen during this period. Therefore, according to metal experts and analysts, this dramatic shift in the supply-demand curve for the white metal will ultimately result in sky-high prices. Investors who are currently buying silver can expect to make a windfall gain in a few years.
Reach out to us before you put your money in silver
The investment team at Physical Gold consists of highly qualified silver experts. Call us now on (020) 7060 9992 and we can offer you free advice on how and when to buy silver. You can also reach out to the team via our website, and discuss your silver requirements. We can help you make the right decisions to build a strong silver portfolio
Globally, silver is sold as per its spot prices. So, can you buy it any cheaper? Well, the only way to do that is to buy junk silver coins. These coins are often sold below their spot price, and so can be considered as one of the cheapest silver buys on the market. Although the percentage of silver in these coins often vary, investors do buy these as a form of speculation. It’s just like buying junk bonds. In this case, speculators get more silver for their money.
What are junk silver coins?
Junk silver coins are world coins with absolutely no numismatic value. Therefore, the only value it could possibly have is the value of the amount of silver it contains. The most popular coins within this category are American silver coins that were minted prior to 1965. The US government minted several coins during this period using alloys that contained silver. However, the purity of silver in these coins varied from 35 to 90 percent. So, these coins command a market value based on what is known as their ‘melt value’. Many of these coins are very attractive to investors as they present a way for them to buy silver at low prices.
“Gold & silver investment jargon explained” – Just one of our YouTube videos.
Bullion coins such as the American Silver Eagle command a ten to fifteen percent premium over the spot price. However, junk silver coins can be bought at only 1-3 percent over the spot. So, this means it’s important to identify specific junk silver coins that have no value to numismatists and also trade at low prices – just over the spot or sometimes even below.
Bags of junk silver coins need sorting to pull out 80% silver coins
Identifying the right coins
If you’re going to spend your money buying junk silver coins, you’d better get a decent amount of silver from it. What you don’t want to do is spend your money buying large amounts of base metals, which are worthless. So, the rule of thumb is to avoid coins that have 35 or 40 percent silver only. Many of these are around, so it’s important to do your research well. There are US half dollars with the head of JFK and there are wartime nickels that are simply called Jefferson war nickels. These have no value.
Unlike the US Morgan Dollar above, junk silver coins have no numismatic value
The cheapest way to buy silver
Circulated US junk silver coins are sold in assorted bags with little or no premium over the spot price. Typically these contain silver coins with varying levels of purity and can be found at different prices ranging from 100 to 1000 dollars. This is literally the cheapest way to buy silver. You can find 90% silver coins in these bags as well. However, investing in these bags requires a large amount of investment, as one cannot strike lucky by buying just one bag. Only after buying several bags can one extricate enough silver to justify the investment. Additionally, as a speculator, you would need to go through the bags and segregate the coins to identify the ones with the highest amount of silver. So, it may not be the smartest and the best way to buy silver, in spite of the prices.
Call our precious metals team to discuss your silver investments
Any form of investment comes with certain risks, especially if you are investing in capital markets or commodity markets. Savvy investors attempt to mitigate risks by diversifying their portfolio. Investment advisors often do a scientific risk assessment exercise and evaluate risks of each asset class, when advising their clients. These assessments are based on historical data, price movements of that particular asset class, market sentiment and market response to macro-economic and other forces. Of course, silver is a much-preferred asset class, viewed by many as a lucrative investment. But, before investing money into this precious metal, let us first consider some of the risks associated with it.
Speculative risk
Investing in a commodity like silver means you are speculating on the future expectation that the price of the metal will go up at a future point in time. As silver is a commodity, this is likely to happen due to increased demand. Investors may buy more of the metal in a bid to house their investments safely during market crises. On the other hand, we are seeing a trend where the demand for silver is rising due to industrial requirements, not investor demand. Coupled with a global scarcity of the resource, it is indeed a possibility that prices could be driven up eventually.
Silver bullion is a great investment, but not without certain risks
Creation of a bubble
Markets usually react to sentiment and when a group of investors start buying up precious metals, the price movements trigger a wave of people who buy as well, hoping to make some quick money. In the process, the price balloons, creating a bubble. This is a very risky situation, because as an investor, if you cannot exit the bubble in time, the price crashes to rock bottom, eroding all your money.
In 1997– 2000, we witnessed the dotcom bubble, where the same thing happened. A lot of people started investing in dotcom start-ups, believing that these stocks would deliver quick returns. Ultimately, the investments became lopsided and when investors realised that these new companies did not have strong enough fundamentals to deliver good returns, they dumped the stocks. The result was a huge market collapse in which several retail investors were completely wiped out. We saw a silver bubble in 2011 when many people moved their money to gold and silver in order to escape the capital markets and the price rose to almost $50 per ounce. But eventually, the bubble burst as investors moved out of the precious metal and went back to equities.
Price performance risks
Silver is considered to be a precious metal due to its historic acceptance by mankind. It may have several uses, beneficial factors and industrial demand, but that may not be enough to justify the investment. Some analysts would argue that its value is perception driven. Therefore, its value as an asset class is strictly governed by price performance. When we take a really long-term view of silver and go back 40 years or more, we realise that the total returns the metal generates are not that great. According to a study conducted by USA Today, silver has failed to post annual profits 43% of the time. So, if the theory of supply vs demand doesn’t bolster silver prices soon enough, it may not be a lucrative enough investment vehicle to warrant attention.
To safely store a large amount of silver, investors need specialised storage
Risk of secure storage
Taking physical delivery of precious metal and storing it in your own home opens you up to certain risks, such as theft or damage. On the other hand, if you buy silver certificates, you open yourself up to counterparty risk. Counterparty risk means that the other party, in this case, the issuer of the silver certificates, may not honour the certificate, if you choose to call for the money. This may be due to a number of reasons, such as the bank going down due to financial problems, etc. On the other hand, once you buy physical silver, you need to incur the costs of having a storage facility to house your investments. Also, investors need to bear in mind that since the price of silver is 75 times less than gold, a sizable investment in silver would also mean a large volume of the precious metal, which will need proper storage.
Call our team of experts to learn more about risks
Our investment team at Physical Gold have silver experts who can guide you through every step of the way. They can advise you about the risks associated with investing in silver and other precious metals. Call 020 7060 9992 to speak to a member of our team or you can get in touch online through our website and a member of our team will call you right back.
There has been great interest in silver in the recent past. The silver market has become buoyant with positive sentiment over expectations of huge price rises in the future. When buying silver, it makes more sense to invest in coins, rather than silver bars, although a mix of both can be desirable for your portfolio. These choices are likely to be governed by individual investment objectives. Having said that, what are the best choices out there in the silver coins’ market?
The silver Britannia
The best coins to invest in for UK investors are the Royal Mint produced coins. The UK silver Britannia should form the backbone of the investment as the standard coin is cheap but very liquid. Premiums are low, as it is a mass-produced bullion coin. The upside potential of buying these coins is tremendous, as it enjoys great availability. Buying large quantities of these coins from dealers can get you hefty discounts.
The Royal Mint issues regular additions of this coin, so, buying the current edition will ensure that you pay little or no premium at all. The Britannia is legal tender in the UK, making it highly tax-efficient in terms of CGT. This is likely to be an advantage for investors who want to cash in their profits after the price of silver rises.
The silver Britannia is a highly collectable coin
Combining Britannia investments with some more limited issue coins such as the Queens Beasts and Lunar series will provide portfolio balance and create the chance to benefit from these coins rising in value quicker due to limited issue.
The Lunar series
One of the great flagship coins launched by the Royal Mint is the Lunar series. It is a set of coins that features a different animal from the Chinese calendar for every issue. The 2019 issue depicts the year of the pig, according to the Chinese calendar. These coins are a must-buy, due to their collectability – there are 12 coins in the set. Each coin has a limited mintage and demand is great due to its popularity in Asia. So, investing in these coins can make your tidy profit, as the demand pushes prices up.
The Queen’s Beast series
The silver Queen’s Beast coins, that are minted by the Royal Mint is yet another beauty. This coin can add great variety to your collection as two sizes are available – a 2-ounce version and a large 10-ounce coin. Once again, they have great collectability value and are tax-efficient. All UK silver coins have the advantage of being Capital Gains Tax-free.
The silver Krugerrand
It is one of the best-known coins in the world and benefits from a very strong secondary market. Investing in the silver Krugerrand ensures great liquidity for your portfolio. The silver version has recently been launched in 2018 and it makes a great addition to any silver portfolio in terms of value and liquidity.
We can help you select the right silver coins
At Physical Gold, our silver investment experts can discuss your investment objectives and suggest the best silver and gold coins to buy. The current gold-silver ratio is around 88:1, so you can purchase quite a large amount of silver for your money compared to when you buy gold. The guidance you receive from our team can ensure that you make the right investment decisions. Call us today on (020) 7060 9992 or contact us via our website to find out more.
Silver is often a great addition to any investment portfolio. If we check silver prices over the last ten years, it’s interesting to note that the precious metal has always tracked gold. So, when gold prices rise, so does silver. Having said that, silver is a great investment, simply because you can buy more of it. The price of gold, when compared to silver is around 80:1. So, it’s a lot cheaper than gold and requires lesser investment to build a decent portfolio. Investment pundits are bullish on bullion silver for 2018 and silver prices are expected to go strong on the back of higher demand. It’s interesting to note that the higher demand for silver actually comes from industrial applications and not from investors looking to build a portfolio to maximise their wealth.
www.physicalgold.com don’t just sell gold! We’re also experts in silver and we’ve made it just as easy to buy silver from us as it is to buy gold. If you have any questions around how to invest in silver UK or foreign products, the amount to buy, whether to buy silver coins or silver bars or how it fits in your portfolio, then just give us a call and we’ll be happy to talk through your options.
How to buy physical silver in five steps
Step 1. Register an account in seconds / log in
Sign up for your free www.physicalgold.com account. It takes just a few minutes and we’ll provide you with expert tips and updates, to keep you informed of market movements, special offers and relevant insights. Just click on the ‘register’ button or log in to the site if you’re a returning user.
Step 2. Select the ‘silver’ product category
We offer four different main types of product categories. You can select either Silver Coins or Silver Bars from the relevant tab.
On the dedicated Buy Silver page, you should find all the information you need, along with short videos about your silver investment.
Since the beginning of 2021, customers can now buy gold and silver products in the same basket.
Step 3. Add your silver to your basket
On the silver page, you’ll be able to indicate how much silver you require. Please be aware that VAT is added to all silver products when purchasing in the UK.
If you’d like your silver stored, please enter that request in the notes field of your order, subject to min of £2,500 value.
Step 4. Pay using bank transfer, or credit card
We accept bank transfer or several types of credit card. Simply input your payment and address details, as you would with any other online transaction. www.physicalgold.com uses the 3D secure payment method, giving you extra protection and peace of mind.
Step 5. Receive your silver to your door (or use our secure storage option)
You’re done! We’ll send your silver coins directly to your door, using fast, secure and discreet delivery. Or if you want insured storage, we can place them into our own secure storage vault. Learn more about our secure storage option here.
Watch Daniel Fisher’s YouTube video, “Silver investing in 2019 and beyond”
Growth industrial areas stimulating demand for silver
The renewable energy business is growing in leaps and bounds as communities across the world are looking for ways to move to sustainable energy to reduce dependence on fossil fuels. Silver is a great conductor and is much in demand for photovoltaic applications, including solar panels. Demand for industrial silver grew to approximately 92 million ounces in 2017 and is predicted to keep rising. Another huge area of growth for silver is its application in electric cars.The electric car segment is expected to explode worldwide within the next ten years. Industrial demand for silver is expected to skyrocket on the back of these innovations. While demand is rising, supply has fallen. Experts believe that the global production of silver from mines has already peaked. Since 2011, the net production of mined silver has fallen by 72.1%. Yet, it remains a tangible asset and many investors turn to silver, looking to insulate themselves from the huge global risks of international stock markets, the falling US dollar, dwindling opportunities in the global money markets and the volatility of crypto-currencies. All of these factors make learning how to buy physical silver an important priority.
Buying silver online is really easy and very convenient
Yet another good reason to buy silver is that you can liquidate it in smaller quantities. This is a great advantage when selling silver for short term liquidity. Gold being way more expensive does not offer this opportunity. The researchers at www.physicalgold.com actively study these market trends. So, for those of you who are seriously looking to buy silver, this article explores how you can do just that from www.physicalgold.com.
How to invest in silver UK wide may seem like a daunting process for first-time buyers but adding some silver to your portfolio is as easy as doing your weekly shop online.At www.physicalgold.com, we secure silver at a fantastic rate, thanks to our size, market credibility and established history in the UK precious metals market. And our BNTA accreditation means you don’t need to worry about the quality of our metals (as you might at a high street merchant). We trade investment-grade silver only and even provide you with a certificate to prove it! And because we value our clients, you can always call us if you need that extra bit of guidance on any silver purchase. We are London-based, which is the heart of the UK financial services industry.
Get in touch to discuss how to buy silver online
We hope you have enjoyed our guide – “How to buy silver online”. So, as you can see, buying silver from www.physicalgold.com couldn’t be easier. If you need help at any step of the way – such as discussing types of silver or asking about buyback arrangements – all you need to do is call us on 020 7060 9992 or email us. We pride ourselves on our helpful and efficient service and we’ll get back to you straight away. Now you know how to buy physical silver, why don’t you browse our tax-free silver section.Shop SilverImage credit: Brian Shamblen
Gold or Silver Investment – which do I choose?
As investors increasingly turn to precious metals to protect their wealth, a common dilemma faced by many is whether to invest in gold or silver. The two metals behave quite differently, so it’s important to understand the dynamics of investing in either, before deciding to add them to your portfolio. Striking the right balance is essential to extricate value from your investments. Far too many people invest money into these asset classes without understanding what they’re getting into. Unfortunately, this can result in undesirable exposure to risk, further up the road. So, let’s take a close look at the right approach to combining your investments in both precious metals.
Historical analysis
Gold has historically been the precious metal of choice for most investors. During upheaval in the market, gold can provide safety and security for your investment portfolio. If we look back at every financial crisis, it is glaringly obvious that gold has risen to new heights during these times of uncertainty.
During the 2008 market crisis, gold reached its highest point in 2011. Similarly, at the height of the economic crisis created by the global pandemic last year, gold once again touched historical highs in August 2020. Even during a normal period in the market, gold performs steadily. Although the yellow metal may rise or fall in the course of market transactions, it does not suffer from extreme volatility. This makes it a fairly safe bet for most investors.
Silver bullion bars can be a great investment as the price is predicted to rise
Investment horizon
Investment planning is perhaps the most important step when investing money into any asset class. Gold and silver exhibit different behaviours across different time horizons. Gold has historically been seen as a safe and steady investment that generates returns and unlocks value over time. Silver, on the other hand, is often seen as a volatile precious metal.
Currently, there is a lot of interest in silver investments as pundits have predicted the mercurial rise of silver in the years to come. Gold is usually a better option for those investing with a shorter time horizon. Silver investors will require a much longer time horizon to unlock value from their investments. However, if the white metal behaves as predicted, there is an incredible opportunity to get in at lower price points and reap great returns in the future.
The gold-silver ratio
Another factor that governs investments in gold or silver is their price ratio. This has widened considerably over the years. It used to be 47:1 but now stands at 85:1. So, silver presents an incredible opportunity for investors to access the precious metals market as it is 85 times cheaper than gold. That is simply an incredible gap, and many investors want to get in and make hay while the sun shines.
But does it make sense to invest in silver? The white metal is a lot cheaper than gold and provides investors with affordable and easy access to the precious metals markets. Due to the widening gold-silver ratio, an entry-level investor may find it more attractive to buy silver.
Daniel Fisher, CEO of Physical Gold believes that the gap could widen further in the near future. According to his prediction, there is a possibility that it could soon be 100:1. Now, more than ever, it is imperative to strike the right balance between these two precious metals, when deciding to add both to your portfolio.
The silver Britannia is an excellent coin for investment
The demand for silver surges
Additionally, silver has suffered from production shortages in the last few years, while demand has risen substantially. As a metal, silver has certain sterling properties. It is one of the most conductive metals and also very ductile. Due to this, it is in demand across several industries like solar, electronics, electric vehicles, etc. Silver investors believe that the price of the white metal may escalate significantly in the years to come, and it may be prudent to lock in investments at low prices now. This may create a wonderful opportunity to reap profits when prices start to rise.
Precious metals portfolio – the right balance
Silver investments can be more volatile when compared to gold. Silver enjoys huge industrial demand and prices are expected to rise as supplies are thinning out. Historical price charts show us that silver tracks gold in terms of growth. Over the long-term, the gold-silver price ratio could reduce to 25:1. The production price is another factor that also needs to be taken into consideration.
In the case of gold, the production margins fade in comparison to its value. However, silver’s current spot price of around £11 does not allow the flexibility to absorb these margins. To strike a healthy balance, a prudent approach could be to maintain a holding of 8% in gold, followed by 20% in silver.
So, if you are focused on building a strong portfolio and hedging risks, gold may be a natural choice. However, if long-term profits attract you, silver investments may fulfil this objective. Gold offers better returns in the short-term and silver can provide you with an opportunity to capitalise over the longer term.
Physical gold investments can generate better returns in the short term
Combining the two metals
It’s actually most prudent to own a mix of both gold and silver. Gold is a more established safe-haven asset, so tends to gain more from market downturns and volatility. Silver can also perform well in these circumstances but also benefits when industrial demand for silver increases as it’s used so widely in electronics. While silver certainly has more opportunity for huge growth, gold is the steadier of the two.
Of course, there are certain tax advantages and disadvantages of buying silver. Silver coins that are legal tender in the UK can qualify for Capital Gains Tax (CGT) exemption. However, other silver investments may not.
The investment experts at Physical Gold can discuss your gold and silver investments
Our investment team is well-placed to offer expert advice to investors like you about investments in either precious metal. Get in touch with us by dialling (020) 7060 9992 or simply send us an email. We can assist you in making the right decision to balance your portfolio by adding both gold and silver.
Live Gold Spot Price in Sterling.
Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Silver Information
Live Silver Spot Price in Sterling.
Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.
Image credit: Brian Shamblen
