Like gold, silver is a very attractive vehicle for preserving your wealth and saving for your future. Owning silver diversifies your portfolio out of the usual stocks, shares and bonds. By transferring some of your assets into silver, you’re not only securing your future but giving your savings a good chance to grow at above market rates. So, here’s our ‘starters guide’ on how to invest in silver, to give you a headstart when the time comes to make your first purchase.
Why invest in silver?
You’re likely to already know that gold trades at a far higher price than silver so, apart from the improved affordability, why would you invest in silver instead of gold? In fact, the current price parity between gold and silver is close to 80:1.
Here’s the deal…
Cost is one of the things to consider. If you’re just getting started with precious metal investment, then silver can provide easier access to the market than gold; getting you started quickly and with less risk. It’s not only about taking fewer risks. There is a huge liquidity advantage in owning silver as well. Let’s suppose two years down the line you suddenly needed cash for an extreme emergency. You need to turn to your investments and liquidate a small bit to get around £5,500.
Download the FREE Silver Investment PDF now
Liquidating a gold bar or two could mean that you end up with a lot more than you require and lose your asset as well. With silver, the scenario is somewhat different. Due to its cheaper market value, you can easily sell a calculated amount to generate just the cash you need and leave the rest of your investment safely locked in.
Diversify a gold portfolio through buying silver
If you already own some gold, then adding silver will further diversify your portfolio. Silver’s price growth – in percentage terms – can often beat that of gold, due to its slightly higher volatility and low price point. Paired with gold, silver can be a highly attractive asset to own; protecting your investment against swings in the gold price, whilst simultaneously giving you the opportunity to beat those very swings.
It’s probably important to remember that silver is expected to rise during 2018. Its current spot price is $16.58 per ounce. Pundits believe that this is expected to touch $20 quite soon. Silver is expected to zoom upwards, riding on the back of increased industrial demand coming from industries like electric cars, solar, electronics, etc.
That’s not all…
In addition to rising demand, the mined supply of silver is slowly thinning out. Peru is a leading producer of silver. In 2017, the Peruvian Ministry of energy and mining have published their silver production data, showing a huge drop in production. The ministry has attributed this decline to exhausted reserves in Cajamarca, a major silver producing area in the country. The report stated that silver production in Peru fell by 12% in February 2017, when compared to the same period for 2016. 2018 figures are expected soon. If production continues to slide at the current rate, it is likely to have a significant impact on spot prices of silver.
How do I get started with some silver?
The easiest way to get started with silver, as with gold, is to talk to a precious metals broker. An experienced broker will be able to secure a good price for you when purchasing your silver, as well as offering supplementary services such as discussing your options and securely storing the silver on your behalf.
If you’d like to talk to us about investing in silver then you can get in touch here.
With prices expected to rise, silver is a sound investment idea
A popular option for getting started with owning some silver is, to begin with, a modest amount and then graduate to larger bulk commitments as your portfolio grows and your knowledge increases. Growing your silver portfolio this way can be very cost-effective and makes it easy to manage the percentage of your portfolio assigned to silver, increasing it incrementally over time.
What else should I know before I start buying silver?
A credible and experienced broker will quickly tell you that there are typically two types purchased by UK silver investors: silver bars and silver coins. Silver coins are Capital Gains Tax exempt, as they’re technically still legal tender, so often these can be the most attractive option, as they can save you a percentage on your profits. You can read a bit more about the different types of silver here.
I’m ready to invest in silver, what should I do now?
If you’d like assistance in taking your first steps into silver bullion or gold investment, then we’re more than happy to have a no-obligation call to discuss your options and requirements. We sell online, but you can arrange a visit by calling us on 020 7060 9992, or you can also get in touch using the form on our contact page here.
Image credits: George Becker
First of all, we’ll briefly explain what VAT is and when it applies. We then quickly move onto how this applies to purchases of precious metals, and then finally reveal some powerful methods of buying gold in the UK without paying any VAT at all!
What is VAT?
Value Added Tax (VAT) is added on to most consumer goods and services in the UK. The current general rate of VAT is 20% with some items being at a reduced or zero rate. This is added at the point of sale and the consumer will bear the charge.
Exemptions to VAT
Many food and drinks are zero-rated except alcohol, confectionery and hot food. Most cultural and leisure activities are exempt as are some health, education and charity goods and services.
VAT rules on silver purchases
If you buy any form of silver in the UK, your purchase is
subject to 20% VAT, regardless of purity and whether it’s a coin or bar. Despite this cost, physical silver investment in the UK has continued to grow in popularity, as analysts believe the silver price is severely undervalued.
Brexit caused the end of VAT-free silver in the UK
Prior to Brexit (31/12/2020), Physical Gold Limited were able to provide silver coins and bars without VAT. Sadly, the UK’s departure from the EU meant that the treaty which brought VAT-free silver ended.
Whilst we can’t provide silver VAT-free anymore we are still able to sell popular silver coins and bars at similar all-inclusive prices. We have made a number of changes to our silver business, which benefit the final price to our customers, these are:
- Silver delivery – we now provide silver with no delivery charge. This is because silver is now delivered from the UK. Postal savings have been passed directly to customer’s
- Reduced product range – we decided to reduce the number of silver products we sell. This means we buy fewer products, but more of them. In negotiations, we can bulk-buy these products, which means we pay less and pass this benefit on to the customer
Overall, these savings negate a lot of the increased price for VAT, so much so that the overall increase price caused by having to pay VAT is negligible. Additionally, we can say we are competitive with other UK dealers and our silver still represents great value for money.
Another benefit is that we can now accept mixed orders for gold and silver. You can now pay for your silver purchases by credit card up to £10,000 and mix gold and silver in the same order – offering you more flexibility.
Buying silver coins
We offer a range of bullion coins from 1oz Britannias and 2oz Queen’s Beasts coins to the most popular foreign silver coins. If you’re buying a large number of silver coins (such as silver Britannias) or looking to build a substantial holding over time, then don’t forget that any UK silver coins are also Capital Gains Tax-free to UK residents.
Buying silver bars
We are at able to deliver pure silver bars to UK addresses. You can benefit from the lower premiums of the larger silver bars, and buy silver bars delivered directly to your door.
3. VAT-Free Silver Bars (For Storage)
For some, while silver investment is a great idea, they don’t want to store the metal themselves. In this case, we provide an alternative solution for those wishing to buy VAT-Free silver bars for storage. Our silver bars are stored, on your behalf, in the Channel Islands. Keeping them offshore means your purchase is exempt from VAT as they fall outside of UK tax. With large bars available, you’re able to obtain tighter margins on your silver, while still being tax efficient
VAT on Gold
This depends on what type of gold you buy. Since the 1st January 2000, the VAT Act 1994 exempts Investment Grade Gold from Value Added Tax. So as long as your purchased gold qualifies as Investment Grade, then no VAT will be charged.
There are a few requirements for gold to qualify for an exemption:
Firstly, it has to be in the form of a coin or a bar. For this reason, VAT is still added to gold jewellery. You should also avoid gold dust, gold ore and gold watches if you want to be tax efficient.
If you opt for a gold bar (such as 100g, 1oz or 1 kilo), the purity needs to be at least 995 thousandths. The good news is that a majority of gold bars on the market exceed this, at 999 thousandths gold, with the rest generally meeting the minimum requirement.
..and how about coins?
For gold coins, the purity target is lowered to 900 thousandths, meaning that any coin of 22 carats or higher will qualify. There are a few extra guidelines for coins – they must be minted after 1800, have been legal tender in their country of origin and not usually sell at more than 180% of the market value of its gold content. Essentially these additional rules exclude very old, obscure numismatic coins.
6 Hacks to buying the best value gold sovereign coins – Watch our video now!!!
If all this sounds complicated, don’t worry. We only sell gold coins and bars that meet these requirements and qualify as Investment Grade, so you’ll never pay Value Added Tax when buying gold through Physical Gold.
How can you take this a step further?
If you want your gold investment to be completely tax-efficient, then buying UK gold coins also benefits from being Capital Gains Tax-free. They already meet the VAT exempt criteria but are also tax-free upon sale due to their legal tender status. With each Sovereign, Britannia, special edition UK coins and variants of these, each coin possesses an actual face value. The Government can’t tax you on the movement of legal currency, so buying and selling UK gold coins is completely tax-free!
Goodbye 2017
With 2017 about to finish, the time is right to reflect on the performance of gold and silver through 2017. It is important to take this into account before we look at any predictions for the New Year. In order to assess the performance of gold and silver, and indeed analyse gold versus silver, we should take into account the spread between gold and silver. The spread is currently 78: 1. This means it takes 78 ounces of silver to buy one ounce of gold. When we analyse the recent performance of gold versus silver, we realise that this gap is widening. In the past year, gold has risen 10.48% (YTD), while silver has fallen -1.08%.
While silver has suffered more volatility in the past few months, the spot price of gold has risen steadily through the year to peak at almost $1350 an ounce in September. Since that peak, it has settled down to almost $1250 as we draw close to the end of the year.
Thinking of investing in gold or silver? Download this 7 step cheat sheet first
What does 2018 look like?
Predictions for 2018 are varied for both the yellow and white metal.
Analysts believe that we could be on the verge of another macro-economic slump as geopolitical events around the world cause uncertainty in the global markets. There are fears that the euro and the pound could both slump, causing instability across the region. The pound is likely to suffer on the back of Brexit uncertainty, while political upheaval in Germany and a looming election possibility is causing uncertainty for investors when it comes to Europe’s economic stability.
Added to the mix is the threat of global terrorism and a deepening political crisis between North Korea and the US. All of these factors could start 2018 off on a shaky start, causing investors to withdraw from global markets and seek safer havens in gold and silver. Gold forecasts are looking positive as we move into a New Year and analysts are bullish on gold.
2018 is looking upbeat for gold and silver as investors may switch to precious metals
Fear may trigger the move to precious metals
Analysts from the global investment bank, Goldman Sachs released a report in November 2017 warning investors about the ‘unsustainable’ levels of US debt in the coming years. The US needs to put the brakes on its budget deficit in order to avoid going back to the debt ceiling crisis of 2011. However, if the US budget deficit increases in 2018, it could weaken the dollar, triggering an exodus of investors to precious metals as we witnessed in 2011.
The only big negative for precious metals is the Bitcoin Bull Run. If this trend continues in 2018, it would divert investments away from precious metals. However, the regulatory environment for crypto-currencies is looking murky as regulators around the world have started clamping down. China has officially banned Bitcoin exchanges and the Indian government has launched an investigation into the sources of money being used to fund Bitcoin trades. Speculation is rife in the market that India may soon follow suit and ban Bitcoin exchanges.
Talk to our experts if you want to invest in precious metals
2018 could start on a positive note for both gold and silver. However, in order to make well-informed decisions about how and when to invest in gold or silver, talk to our experts. At Physical Gold, we have been advising investors on investing in precious metals for years and our experts will be happy to help you out. Call us on 020 7060 9992 and get the right advice before you invest your money.
Image Credit: Pixabay
Why precious metals?
Precious metals as an investment category have always attracted investors seeking to park their money in an asset class that behaves stably and does not have volatile highs and lows. Gold and silver are hot favourites for investors seeking to hedge their risks, find a safe haven and identify a stable asset class worthy of investment during periods of uncertainty in global stock markets.
The 2008 global economic crisis
A classic example is the period from 2008 to 2011. Spot prices of gold started rising from $870 in 2008. It continued to rise, finally reaching a record peak price of $1,895 on the 5th of September, 2011. This meteoric rise was fuelled by a number of factors.
Thinking about buying gold? Download the FREE 7 step cheat sheet first
The Eurozone crisis was clearly one of the factors that led to that rally in gold. A number of European countries defaulted on their national debt, starting with Greece. In quick succession, Portugal, Italy, Ireland and Spain joined the ranks. The spiralling debt crisis led global investors to believe that the entire European economy could be headed for a collapse. So, they hedged their risk by moving their money to precious metals. Similarly, during the 2011 debt ceiling crisis in the US, investors lost confidence in the American economy and turned to gold.
Precious metals are often chosen by investors looking for a safe investment option
2018 and beyond
According to research conducted by Citi, gold prices were likely to rally into 2018 and beyond on the back of the current geopolitical crisis. These include military attacks, the threat of global terrorism and the political situation in North Korea. Citi analysts predicted that the spot prices of gold will rise upward of $1400 an ounce and remain there until 2020. The analysts believed that a global macro-economic crisis will be an outcome of the geopolitical crisis and investors will move to gold or silver. A rise in the prices of silver in 2018 was expected due to economic and geopolitical uncertainty, but also higher demand coming from the industrial sector.
2020 and the global pandemic
Despite studies conducted by the market pundits and precious metals experts, no one could predict the real impact of the 2020 global pandemic, which significantly boosted precious metal prices. The COVID 19 pandemic, which unfolded in early 2020 and accelerated quickly through the year, plunged the world into yet another economic crisis of epic proportions. Many of the leading economies around the world bore the brunt of lockdowns, shutting down of many businesses throughout the country. This resulted in complete economic uncertainty, falling interest rates and rising unemployment.
Many investors moved to precious metals during this period to protect their wealth against the impact of the pandemic. As a result, precious metal prices rose, and gold achieved its all-time high of US$ 2048.15 per ounce on 5 August 2020. Silver prices also rose to a seven-year high of US dollar $22.90 per ounce in July 2020. Although industrial demand for precious metals fell during the lockdown, so did production. Latin American nations like Mexico and Peru are responsible for approximately 2/5 of global silver production, however, mine shutdowns created scarcity for silver. Due to the overall escalation of precious metal prices, the gold-silver ratio also fell to 70:1.
So, if you’re interested in buying gold or silver as a hedge, or an investment or purely to diversify your asset base by adding a safe haven, it’s probably time to think and act upon it now. It’s also interesting to note that the historic COMEX spot price curves of gold and silver are almost identical. This means that gold and silver enjoy heightened demand at similar intervals. However, it’s important to note that the price ratio of gold to silver is 78:1. This means silver is more affordable and is often a precious metal of choice for investment portfolios.
Talk to our experts for advice on buying precious metals
At Physical Gold, our combined expertise over several years makes us an ideal choice for you to discuss how precious metals can be an important asset class in meeting your investment goals. You can reach us at 020 7060 9992.
We can help you purchase precious metals directly from our website. Our experts are always happy to advise you on what to buy and then walk you through the process of placing your order online. It’s simple and hassle free and we will fulfil your online order quickly, making it one of the easiest methods to directly acquire precious metals.
Image Credit: Images Thai
Precious metals such as gold and silver are a great way of diversifying your investment portfolio. If you’re looking for a solid longer-term investment that can act as a great safe haven against both drops in the stock market and inflation risks, then you may want to consider investing in silver.
What is silver stacking?
If you frequent investment forums or like to read online investment publications, then you may have already heard the phrase “silver stacking” before. For those who haven’t previously heard the term, it is generally used to describe someone who stockpiles silver, usually in the form of silver bars, coins or rounds. Anyone who collects silver in some form or another can potentially be classed as a silver stacker.
Silver is a popular choice for investors largely due to its affordability which allows investors to buy it in larger quantities. Coins (such as silver Britannias) particularly are a very popular way of buying silver as they are one of the easiest and most interesting methods of collecting. Unlike coin collectors, however, silver stackers rarely pay attention to particular dates or designs and are more interested in the amount of silver contained in the coins.
View our YouTube video “5 best silver coins to invest in”
Why the need to stock pile silver?
Silver, along with other precious metals such as gold and platinum, is often bought as a hedge against inflation. Many investors like to stockpile silver as it is a great store of value. In other words, it retains its value over long periods of time. Unlike paper money, silver has real value that isn’t dependent on government backing. This is one of the main reasons why it is such a popular investment. The more reliant we are on fiat currency and digital wealth, the more people will turn to tangible assets such as gold and silver to have a reserve outside of the system.
Download the 7 step cheat sheet to successful silver investing. FREE pdf
A lot of silver stackers like to set aside a certain amount of money to invest each month. This can help spread some of the risk involved with investing in what is still considered a fairly volatile asset. Instead of blowing large amounts of cash all at once and facing the risk of being hit by a drop in silver prices, they can buy in smaller amounts, as and when they have the money.
Silver bullion bars
Growing demand and industrial use
Right now, the price of silver is historically low which is strange, especially considering there is so much growing industrial demand for the metal. New uses for silver are being found all the time and it is one of the most widely used metals on the planet. Sectors that are continuing to grow in importance such as solar energy and electronics/computer industry are increasingly turning to silver due to its many beneficial properties. Of all the metals, it is considered the best conductor of electricity, heat and light. With silver becoming such an important industrial metal, surely it is only a matter of time before it’s market price starts to reflect this as there is currently more silver being used on an annual basis than is being mined.
Why buy silver bullion?
Certain forms of silver such as Bullion coins can be bought CGT tax free which makes them an attractive investment for stackers. Here at Physical Gold, we specialise in silver bars and silver coins (such as Britannias). For more information on any of our products or advice on how to become a silver stacker, please give us a call on 020 7060 9992.
Image Sources: Flickr
The market for precious metals has underperformed throughout 2017. Big things were expected from gold and silver this year and despite performing strongly early on, they didn’t reach the heights that were expected. Both gold and silver have picked up recently but overall it has been a relatively disappointing year for precious metals.
Metals expected to perform well in 2018
Palladium
Despite a relatively underwhelming year from most precious metals, one metal that has performed particularly well is Palladium. This year prices for Palladium overtook platinum for the first time since 2001. Of course, there are no guarantees that Palladium will continue to perform well next year, however there are a lot of good indications. For one, production of Palladium is said to be in decline, particularly in Russia who currently produce around 41% of the world’s supply. As it stands Palladium is roughly 15 times rarer than its sister metal platinum, and around 30 times rarer than Gold. Other than Russia other large producers of palladium include South Africa and Zimbabwe.
There has also been an increase in the demand for Palladium from the car industry. This is due to consumers switching from diesel back to petrol cars amid government emissions warnings. Palladium is primarily used in catalytic converters for petrol cars helping to turn toxic gases and fumes into less harmful pollutants. The increase in demand for palladium is likely to continue into 2018 and whilst the emergence of electric cars could be a potential threat to the Palladium industry, we are still a long way off seeing electric cars becoming a proper rival to petrol.
Raw Palladium
Silver
Silver has had an indifferent year throughout much of 2017, however a lot of experts are predicting big things for the precious silver metal market in 2018. Currently the price of silver is relatively low despite a massive increase in demand across many industries, particularly solar energy. Production of silver is also on the decline and many people are predicting a big rise in its value if demand continues to outweigh production.
Gold
Gold was expected to perform extremely well this year but so far this hasn’t really been the case. Despite prices rising early in the year, gold prices have stayed fairly stable. With Interest rates in the /US expected to rise, gold is likely to take a hit early on in 2018 but many experts predict the metal will come back strongly towards the latter half of 2018 with prices expected to rise considerably.
Geo-political tensions and their effect on the market for precious metals
In times of political uncertainty, prices for precious metals – particularly
gold and silver, often tend to rise. This is because people are keen to store their wealth in tangible assets in the event that there should be a drop in the market. When prices for both gold and silver rose in 2017 it was generally due to geopolitical tensions such as Trump’s Inauguration and elections in Europe.
Looking ahead to 2018 there are several potential issues that could continue to cause economic instability. Brexit negotiations are still on-going which could potentially cause political conflict in Europe, although most of the cards are already on the table at this stage. Trump’s administration however, could still prove to be very volatile. US relations with Iran and North Korea are also very much in the balance and should things escalate then the economy may be affected. With so many global conflicts of interest still in the balance, our experts at Physical Gold are predicting a strong year for precious metals in 2018 as people look to store their wealth outside of the traditional system.
Purchase gold and silver with Physical Gold
For more up-to-date information and news on the precious metal industry, please visit our blog. If you wish to speak to us about how to invest in gold and silver, please call us on 020 7060 9992.
Image sources: Wikipedia
.jpg){kind=link}
One may have heard the much clichéd term – ‘never keep all your eggs in one basket.’ When it comes to financial investing, this is however true. Portfolio diversification is a technique used by savvy investors that does just that. It is a well-researched, concerted strategy that reduces the risk of a portfolio by spreading investments across a number of asset classes, financial instruments, industries and commodities. We go on to discuss this topic in detail throughout this article.
Download our Insiders Guide to Silver Investment FREE
The case for portfolio diversification
The actual decision to diversify is guided by mathematical calculations carried out by professional financial advisors who advise their clients on where to put their money. The calculations of risk usually take into account two types of risks: un-diversifiable and diversifiable. Un-diversifiable risk usually refers to risks that are systematic. Otherwise known as ‘market risk’, these are risks that are common to all asset classes, stocks, bonds and the investor has no choice but to accept this risk. Examples of these risks could be interest rates, exchange rates, rates of inflation, political situations, war, or even Brexit.
What else should I know about risk?
Diversifiable risk, however, refers to risks associated with specific industries, countries, asset classes, company stocks, etc. The investor can choose not to invest in a certain country or industry in order to avoid the associated risks. The objective of the diversification exercise is to make investments in different asset classes in a way that ensures that the overall portfolio gains. This happens by offsetting the risk associated with a particular asset class with the gain enjoyed through investments in another asset class.
Silver as a commodity investment
Real estate and commodities are asset classes often added to stocks, bonds, cash and financial instruments when planning a diversified portfolio. Silver is a commodity, as is gold. The two precious metals have always been a safe haven for investors hedging against market risk and inflation. Inflation slowly devalues cash held by an investor in bank accounts and cash deposits. The rate of interest provided by banks fails to offset the risks of inflation.
How can we protect ourselves?
As inflation triggers price rises everywhere, the price of silver also rises and protects investors against inflationary forces. Similarly, when stock markets crash, investors pull their money out of markets and move it into traditionally safe havens like real estate and precious metals. Again, the price of silver rises, making it an attractive investment to hedge against market risk. In 2011, the US debt ceiling crisis saw Moody’s and S&P downgrading their rating of the US economy. As a result, silver prices peaked and on April 25, 2011, silver traded at $49.80 per ounce on the New York spot market.
Silver is a popular asset class for hedging risk
The performance of silver as an asset class
Historically, the price of silver has always tracked gold although the price of gold against silver is 75:1. This makes silver an attractive investment in the long run. While COMEX silver prices have declined from the heady days of 2011 when it traded close to $50 an ounce to a current price of $17.04 per ounce, it has held steady over the last year, dropping by only a dollar. As an investable asset class, silver has the following attributes:
- Silver is more appealing to investors simply because
of its lower price point. You can buy a kilo of silver for only £412, but a kilo of gold will set you back by £31,162
- The demand for silver is a lot greater than gold, due to its industrial use. But for every ounce of gold, the industry mines 9 ounces of silver. Experts believe that the current gold/silver ratio of 75:1 will not last. They are pegging silver to rise to $140 an ounce by 2019
- Silver and other ‘hard’ assets are an excellent hedge against the threat of cybercrime. Hackers can get in and manipulate digital data and cryptocurrencies, but silver coins and bars are safe from such risks
- Silver offers excellent short-term liquidity to an investor. Other defensive asset classes like property cannot be sold quickly. Gold being more expensive does not provide a suitable avenue for freeing up capital for smaller tranches of investment. Silver is, therefore, an excellent choice for an investor who wants to hedge risks in the short term, and then wants to liquidate small chunks of capital to put back into the market once it rises
Call us for expert advice on investment in precious metals
Our investment experts are always available to discuss your investment needs and can help you diversify your investment portfolio by investing in silver. Call 020 7060 9992 to speak with one of our advisors or email us and we will be in touch with you. Once you decide to invest in metals to diversify your portfolio, we can help you make the right choice.
Image: Pixabay
The soft shiny white metal
Throughout history, silver has had an unbeatable reputation as an ornamental metal. Used in coins and jewellery throughout the ages, silver has now evolved as a metal that enjoys great industrial demand. Silver has certain unique properties that make it a favourite for industrial usage. Across the electronic industry, computers, telecommunications and pharmaceuticals, silver evolved to take centre stage as an important element, widely used in modern innovations.
Leading silver producing nations
Leading the league table of silver producing nations, Mexico and Peru remain the top two, followed by China, Chile and Russia. Silver is mined from silver mines, or manufactured as a by-product from lead and zinc mines. Silver is separated from the ores using a process of smelting and refining. The electronics industry demands the purest silver which has a fineness of 999.9.
Want to know more about silver investing? Download the FREE 7 step cheat sheet
Properties of silver
Unlike its ornamental history, silver isn’t used in industry simply because it’s rare and valuable. Silver has strong anti-corrosive properties and also resists oxidation. Although gold does this better, gold bars and gold coins are also far more expensive to use. Currently, the spot price of gold to silver is 75:1. But when it comes to thermal and electrical conductivity, silver is the first choice for industrial applications. In fact, it is the best thermal and electrical conductor among all metals. Silver is also anti-microbial. When silver ions turn positive, it fights bacteria by binding with negative oxygen ions within the bacteria itself. It also changes colour when it comes in contact with toxic substances. These properties make it useful in the manufacture of medicinal, pharmaceutical and consumer products.
That’s not all
Silver is a lustrous and reflective metal and this makes it perfect for use in jewellery, silverware and mirrors. It is both malleable and ductile. It can, therefore, be flattened into sheets, pulled and drawn into thin wire, making it ideal for industrial applications, particularly in the electronics industry. Photosensitivity is yet another property that silver enjoys and is used in films and photography. In fact, there’s little one can’t do with silver. It can be made into a powder, flaked, suspended as a colloid and used as a catalyst. Silver is also a metal that can easily be blended with other metals to form alloys.
The use of silver in photovoltaic cells is rapidly increasing
Uses and applications in industry
Of course, given its unparalleled conductivity, it is widely used in electronics. It is used as contacts in electrical switches. From automobiles to refrigerators, wherever contact switches are required, you can find silver.
Conductive pastes are made using a silver-palladium alloy. These pastes have a wide range of uses in industry. An example is the thermal paste used on the heat-sink, which is attached to the CPUs of computers. The rear defrost function in many cars uses a silver paste. Huge technological innovations in recent years have given rise to the use of Nano silver. Nano silver has an extremely small particle size, and can, therefore, be used in the production of printed electronics such as printed circuit boards and electrodes used in a supercapacitor.
Plasma televisions use a silver electrode that produces high-quality images, while LED (light emitting diodes) use electrodes to create energy efficient lighting for our homes.
Use of silver in the energy industry
Solar panels use silver paste contacts which are printed on photovoltaic cells. When the energy from the sun hits the semi-conducting layers of these cells, power is produced. These cells then acquire and transmit the current with minimum loss. The use of silver in photovoltaic cells is rapidly increasing as the solar industry grows. Another method of generating power is to reflect the solar energy using silver. The reflected energy is captured by collectors that use salts to generate electricity. The use of silver is not limited to solar energy. Silver is widely used in control rods that are used to attract neutrons and slow down the rate of fission in a nuclear reactor.
The use of silver in photography
The rise of digital media has now slowed down the use of silver in the photography industry. Until recently, silver halide crystals played a key role in traditional film photography. Upon exposure to light, the crystals would record a change to create an image that could then be developed into a photograph. Although digital cameras have now taken over, this method is still used in traditional photography, as well as the field of medicine, where the technology is used to generate x-rays. An interesting fact is that the term ‘silver screen’ had nothing to do with filming. The screen on which movies were projected also used silver, hence the name.
The use of silver in medicine
Apart from the antibiotic and non-toxic properties
of silver, medicine has used silver for thousands of years. Before the age of antibiotics, silver foil would be wrapped around wounds to help patients heal. Colloidal silver still remains a cure to be taken internally, to fight illnesses. The use of the metal in eye drops and dental products remains prevalent as a popular method of prevention and cure of infection.
Why does this matter?
The advent of superbugs like MRSA has created new demand for silver in hospitals. Silver is being widely used in the production of surgical equipment, wound dressings and even hospital surfaces in order to fight pathogens. Silver sulfadiazine is particularly useful in treating burn victims because it stimulates the growth of the skin while it kills bacteria. Silver ion is also used in the treatment of bone infections and regeneration of damaged tissue.
Printed circuit boards in electronics use silver coated connectors
Get in touch with our experts to discuss investing in silver
In addition to the widespread use of silver across industries, silver remains a popular precious metal worthy of investment. Silver is used universally in making silver coins (such as silver Britannias) and silver bars (such as 1kg). Call Physical Gold Limited on 020 7060 9992 or drop us an email to find out how you can invest in this valuable metal. Our investment experts can talk to you about the best way to buy silver, inform you about silver prices and discuss the future of silver investment. Silver prices have remained steady through 2017 and the future is bright for this versatile and extremely useful commodity in 2018.
Image Credits: Carl Attard and Pixabay
Can the use of metal really have health benefits? Healing properties in gemstones, minerals and metals have long been a part of holistic treatments through time immemorial. It is a popular practice in several cultures around the world to wear amulets or other jewellery containing precious stones for spiritual and health benefits. In this article, we’ll look at the proven health benefits of silver.
What are the health benefits of silver?
Silver has many health benefits and has been used for centuries as an antimicrobial agent, and prolonged contact of the metal with the human body is said to have several health benefits, including better immunity. Silver is often used to fight infections and has preventive properties that aid in staving off colds and flu. Proximity to the metal may help regulate internal body heat and circulation. This property can be beneficial to humans suffering from a wide range of problems related to poor blood circulation, such as high blood pressure, varicose veins, etc. The natural properties of silver are also known to offset external electrical disturbances and maintain the temperature balance within the human body. Consequently, people who wear silver have reported benefits that include better energy levels and balanced emotional states, which they attribute to the use of the metal.
Toxicity prevention and improved healing
Another reported benefit of wearing silver is that it improves the elasticity of our blood vessels. Therefore, silver can improve bone formation, help in healing surface wounds and is often used as an agent in the maintenance of the skin. An interesting property of silver is that it changes colour when it comes into contact with toxic chemicals. This can be really helpful in avoiding contact with toxic substances. Many people are even known to use silver lined gloves when working on their computers in order to stop electrical charges from entering their body.
Medical research has proven silver to be a powerful antibacterial agent
The use of silver in the pharmaceutical industry
The use of silver has been prevalent in the pharmaceutical industry for long. Silver is often used in the manufacture of wound dressings, antibacterial creams and medical devices. Silver sulfadiazine is a chemical used to make wound dressings for external infections. Many medical devices are manufactured with an antibiotic coating that contains silver. Breathing tubes may sometimes use silver in order to reduce the risk of pneumonia, which could arise with the prolonged use of ventilators.
The chemistry behind the healing properties of silver
The beneficial properties of silver are derived from the chemical properties of the metal. A conductive field that is capable of reflecting electromagnetic radiation away from our bodies is created when silver ions gain a positive charge. This can favourably impact the body’s natural conductivity, which may result in improved blood circulation, temperature balance and promote a feeling of general well-being. These positively charged silver ions are capable of binding with oxygen receptors in bacteria that are negatively charged. This enables silver to battle harmful infections and disease.
Should I invest in gold or silver? – Learn what Daniel Fisher has to say in our video
Infact, findings of a study conducted in 2008 proved that arthritis sufferers can benefit from wearing a particular type of silver ring. The study found that sufferers of rheumatoid arthritis, which is a type of auto-immune disease can benefit from wearing silver ring splints. The silver reduces deformity of finger joints, which is common in patients who suffer from this condition.
Talk to the experts in silver
Whether you are interested in buying silver for its healing properties or simply as an investment, the experts at Physical Gold are always on hand to help you make the right choice. Our guide on how to buy silver in five easy steps can help you make a start. Even better, call us now on 020 7060 9992 or simply drop us a line through our website and our team of experts will get back to you. They can talk you through everything you need to know about purchasing silver, including silver coins (such as Britannias) and silver bars (such as a 1 kilo bar). Let us guide you in making a purchase that you’ll be proud of in years to come.
Image: Pixabay
When it comes to selling precious metals, there are several things you need to consider. We are lucky we live in an age where there are so many options available to investors and selling gold and silver at the best rate is relatively easy. However, if you’re not careful, it is very easy to get ripped off, particularly if you’re not sure what you’re doing. Here are 10 important considerations to consider when selling gold or silver.
1) Find out how much your gold/silver is worth before you sell it
Most dealers will always pay less than the spot price for your goods as they need to make money themselves. It’s always a good idea to get an idea of what your items are worth before you sell them, so you get a fair price. Try and do your own research as much as possible before selling your gold and silver, and if you need a rough idea of its value then there are gold/silver value calculators online that can give you the current value of your gold/silver per gram.
Sell your gold and silver coins at the highest possible prices. Download the FRE 10 commandments pdf
2) Take note of futures prices
Futures prices are different from the spot price and show the predicted value of gold for some time in the future rather than their current value. Futures prices can only give you an indication of how well gold and silver are expected to perform, however, it is still worth checking futures prices before deciding to sell, as it can give you an idea on how well the market’s performing.
3) Monitor exchange rates as well as gold/silver prices
Since gold and silver are priced in US dollars, it is important to look at how well your currency is performing against the dollar before deciding whether to sell. It is not enough to simply look at the current value of gold/silver because if the currency your trading in is weak against the dollar, you may find that you’re not making as much profit as you thought.
Gold and silver coins
4) Should you sell on-line?
The internet has created many opportunities for investors to buy and sell online, however, there are risks involved with trading on the web. Whilst there are a huge number of traders and dealers on-line, there are also a lot of scams and companies looking to rip you off. Make sure you do your own research before selling online and shop around for different quotes. You can sometimes get better prices for your goods online as dealers have fewer overheads to pay.
Don’t be fooled by the several ‘cash for gold/silver’ schemes out there in the market. Most of the times, these are unscrupulous brokers who will pay you far less than what your precious metals may be worth. Also, it may not be safe to put your gold in the post and send it to these traders. Always trade with a well-known dealer who has a clean track record. There are several good online traders in the market today. It’s worth doing your homework in order to identify a couple. In the same vein, it’s better to develop a relationship with two or three good brokers, rather than stick to just one. This will give you the advantage of being able to shop around and lookout for the best deal you can get.
5) How liquid are the goods?
When purchasing gold or silver to sell, it is important to think about the liquidity of the goods before you buy them. In other words, how quickly or easily can you convert them into cash. Both gold and silver are considered liquid commodities, however, depending on what form you buy it in, it can sometimes be more liquid than others. For example, bullion coins are typically much more liquid than numismatic coins as the market tends to be less volatile and it isn’t exclusively coined collectors who buy them. Silver is also more of a liquid asset than gold. This is because it is much more affordable for most people, and therefore there are more buyers out there.
6) Sending by post
If you’re planning on posting the goods to a buyer, then you should always check first to see if your courier allows the transportation of gold or silver and whether the goods are ensured in the event of loss or damage. Most couriers do not insure gold or money, this means that if there’s a problem you probably won’t get your money back. Always make sure your parcel is tracked when sending and that they are “signed for” on delivery.
Three Gold Bars
7) Capital gains tax
Capital gains tax applies to everything you sell, exchange or have made a profit on. If you make more than £12,000 profit on any items you’ve traded in the financial year, then you will be subject to pay capital gains tax on anything over that amount. Certain bullion coins are exempt from CGT tax altogether in the UK. These include any coins produced by the Royal Mint that are considered British legal currency. For example, silver Britannia coins are exempt from CGT.
8) Don’t expect to get the spot price
You will rarely be offered the spot price when selling gold or silver as dealers are looking to make as much money as possible. Normally a dealer will have a buying price and a selling price. If you’re selling goods to the dealer you will always get less than if you’re buying from them. This is known as the spread.
It’s best to shop around for the best price when selling gold bars
As a buyer or seller, it’s important to understand the role that premiums play in the price of gold and silver. The spot price is really a guide price in the market that is stated in USD per ounce. Of course, on any given day, you will need to convert this price into GBP to understand it better. The good news is that many reputed UK brokers will already have the Sterling price up on their websites. Now, when you buy precious metals, you will pay a slightly higher price margin than the spot. Likewise, when you sell, you will receive a slightly lower price than the spot price at that point in time. Of course, these premiums can vary depending on what you’re buying or selling. For example, if you are buying gold coins that are rare and have numismatic value, they would command much higher premiums due to their age and market value.
9) Avoid the spread
The difference between the price a dealer pays for your goods at and the price they sell them for is known as the spread. One way to maximise your profit when selling gold and silver is to try and reduce the size of the spread through clever investing. The size of the spread can vary dramatically from dealer to dealer so always look around before buying. The spread is also considerably lower if you hold your gold in allocated storage with a bullion dealer rather than trading in physical coins.
10) Selling overseas
Don’t forget that when you sell overseas, the laws of the country in which you sell will apply to the sale. Always remember to check any rules and regulations that may be applicable if you plan on exporting gold abroad.
Selling to Physical Gold
Here at Physical Gold, we guarantee to buy back any gold and silver we sell. You can sell gold and silver very simply through us. Depending on current stock levels, we are also happy to buy any gold or silver you’ve bought from other vendors. Please check our website for up-to-date price guides and call us on 020 7060 9992.