Investment silver – A good alternative to investing in investment gold
When talking about investing in gold, investment silver is almost always mentioned - the second most popular precious metal in the world. The reason is a similar function that these precious metals have had throughout history. Namely, due to the rarity of gold, there was often not enough of that precious metal to produce a sufficient number of coins for the normal functioning of the economy, therefore many kingdoms and empires minted silver money in the form of silver coins.
Although today central banks no longer hold strategic stocks of silver as part of precious metal reserves, many investors invest in this metal in order to diversify their portfolio of precious metals, in which the central place is traditionally occupied gold. Some of them believe that silver has a higher price growth potential than the yellow precious metal. The reason is the industrial demand for silver.
Industrial demand
Most of the gold mined ends up in jewelry and gold bullion, which means that using gold buybacks it is relatively easy to get hold of the metal if there is an industrial need. When it comes to silver, approximately half of all silver mined annually ends up in various electronic products, solar panels, batteries, mirrors, photography industry, chemical industry, etc.
Decades use of silver for the aforementioned purposes resulted in a situation where the silver stocks available to humanity are less than the gold stocks, and the price of gold is several tens of times higher than the price of the white precious metal. It is on this basis that advocates of investing in silver believe that in the long term, the price of silver increase in percentage more than the price of gold.
The difference between ordinary and investment silver
When investing in silver, one does not buy unrefined industrial metal or silver jewelry, but almost always deals with bars and coins that are categorized as investment silver. Namely, when purchasing jewelry, it is almost impossible to get a price similar to the stock market price of this precious metal, while the difference between the purchase and sale price of standardized 99,9% purity bars is only a few percent and they always follow the price movement on the world market.
Silver coins are also considered investment silver and are popular with investors of lower purchasing power who invest small amounts of money in precious metals at regular intervals.
VAT on investment silver
Probably the most important reason he is in Europe investment gold a much more popular investment than investment silver is the value added tax, which the end customer must pay when buying bullion and coins made of silver. Namely, at the EU level, investment gold is exempt from VAT, while other precious metals are not.
However, some investors believe that it is realistic to expect the abolition of the tax on silver in the coming years or decades, and if that happens, there will probably be a sudden jump in the price because the European Union is a huge market with many investors in precious metals.
Where to buy investment silver?
In Croatia, investment silver from reputable world mints of precious metals s LBMA certificate can be bought at Centar Zlata on very favorable terms. In addition to sales, we also buy investment silver, thus providing our clients with a full investment service. We also offer products made of gold, platinum and palladium, which is why we are the central place for investing in physical precious metals in Croatia. If you have any questions about our products or generally about the benefits of investing in silver bars and silver coins, feel free to contact us!
Notes:
- Every reference on this page to "Centar Zlata" refers to the company Saiva doo
- The texts on centarzlata.com serve exclusively to inform and educate about financial and precious metal markets and should not be considered as investment advice.
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