If you’re thinking about Silver Investment but unsure what to buy, this guide will help you find the best options. Silver bullion coins are popular among UK investors, especially during tough economic times. Here are the top five silver bullion coins that many UK investors like.
Silver has always been seen as a strong and valuable investment. It helps keep wealth safe and can grow steadily. Whether you’re just starting to invest or have been collecting for a while, silver offers many options to fit different goals.
| investment | Country of Origin | Manufacturer | Tax (VAT/CGT) | Purity | Size | Fineness | Weight | Benefits |
| 1oz Silver Britannia Coin | United Kingdom | The Royal Mint | 20% VAT, Capital Gains Tax-free | 99.9% (.999 fine silver) | 1 ounce | 999/1000 | 31.1 grams | – Ideal for first-time investors- Popular with collectors- Tax-exempt status |
| 1kg Silver Bar | Various (UK & Intl.) | LBMA-certified mints (e.g., Scottsdale, PAMP, Metalor, Valcambi, Umicore) | 20% VAT; CGT-free | Typically .999 fine silver | 1 kilogram | 999/1000 | 1000 grams | – Lower premium per gram- Economical compared to smaller sizes- High liquidity in the silver market |
| 5kg Silver Bar | Various (LBMA-certified) | Geiger Edelmetalle | 20% VAT; CGT-free | .999 fine silver | 5 kilograms | 999/1000 | 5000 grams | – Reduced premiums- Cost-effective for large holdings- Potential for long-term appreciation |
| 1 oz Silver Maple Coin | Canada | Royal Canadian Mint | 20% VAT; CGT (10% – 20%) | .9999 fine silver | 1 ounce | 999.9/1000 | 31.1 grams | – Highly liquid- Recognizable design with security features- Favored for ease of resale |
| 1 oz Silver Krugerrand Coin | South Africa | South African Mint | 20% VAT; CGT-free | .999 fine silver | 1 ounce | 999/1000 | 31.1 grams | – High resale value- Globally recognized brand- Ideal for diversifying portfolios |
1. 1oz Silver Britannia Coin
The 1oz Silver Britannia Coin is a well-known British coin that shows the UK’s history with silver. It was first made by The Royal Mint in 1997 and features the famous image of Britannia, which symbolizes Britain’s strength.
Over time, this coin has become popular because of its cultural importance, high quality, and reliability for keeping wealth safe.
- Country of Origin: United Kingdom
- Manufacturer: The Royal Mint
- Tax (VAT/CGT): 20% VAT, Capital Gains Tax-free
- Purity: 99.9% (.999 fine silver)
- Size: 1 ounce
- Fineness: 999/1000
- Weight: 31.1 grams
Key Benefits
- Ideal for First-Time Investors: Its relatively low price point and reliability make it perfect for beginners in precious metals.
- Popular with Collectors: Collectors are drawn to the Britannia for its changing designs and historical symbolism.
- Tax-Exempt Status: It is VAT-exempt in the UK and free from Capital Gains Tax (CGT), offering significant tax advantages compared to other silver investments.
There is consistently high demand for the Silver Britannia Coin both domestically and internationally.
Recent reports indicate a surge in interest, with overall silver bullion sales increasing by 36% year-on-year in 2024, driven by rising prices and geopolitical uncertainties
Who Buys 1oz Silver Britannia Coins?
- Investors looking for a CGT-free
- Investors whose budget range from £50 – £50,000 or more
- Long-term investors
- UK investors
- New investors and collectors
- Gift givers
1kg Silver Bar
1kg silver bar is a popular choice for serious investors due to its high silver content and cost-effective bulk format. It’s seen as an efficient option for those looking to store significant value in silver, as larger bars like the 1kg have lower premiums than smaller bars or coins.
- Country of Origin: Available from several countries, including the UK and internationally.
- Manufacturer: LBMA certification like PAMP (Switzerland), Metalor (Switzerland), Valcambi (Switzerland), and Umicore (Belgium).
- Tax (VAT/CGT): VAT 20% on the purchase price in the UK; CGT-free as legal tender
- Purity: Typically .999 fine silver.
- Size: 1 kilogram.
- Fineness: 999/1000.
- Weight: 1000 grams.
Key Benefits
These sizes of bars are attractive to investors because of the lower premium per gram, making them more economical compared to smaller sizes. Larger weight also means these bars are often kept in long-term storage as a wealth preservation asset.
Due to their size and purity, 1kg silver bars are generally stored in secured facilities or personal vaults. They are also easy to resell, especially if produced by reputable mints, thanks to the high liquidity in the silver market.
Who Buys 1kg Silver Bars?
- Smaller and First-Time Investors: Spending between £1,000 – £5,000.
- Larger Investors: Spending £10,000 – £50,000 or more.
- Long-Term Investors: Those planning to hold silver for extended periods.
- Individuals Seeking Value for Money: Attracted by lower premiums compared to smaller bars or coins.
5kg Silver Bar
For high-net-worth individuals, the 5kg silver bar is an efficient means to acquire and store substantial silver holdings, appealing especially for large investment portfolios.
- Country of Origin: Varies, sourced from LBMA-certified mints.
- Manufacturer: LBMA certification like Umicore (Belgium)
- Tax (VAT/CGT): VAT 20% on all silver, CGT-free as legal tender
- Purity: .999 fine silver.
- Size: 5 kilograms.
- Fineness: 999/1000.
- Weight: 5000 grams.
Key Benefits
Its bulk size allows for reduced premiums, making it a cost-effective option for investors seeking substantial holdings without excessive markup. Additionally, larger silver bars are known to offer potential savings and appreciation value over time as bulk silver may increase in value with market demand.
Investing in 5kg silver bars can also benefit from market trends. Due to their volume, they are typically aimed at individuals who wish to buy and hold silver long-term and benefit from bulk pricing.
Who buys 5kg Silver Bars?
- Larger investors spending £20,000 – £100k +
- Want to invest heavily in precious metals to protect their wealth
- Aim to increase their investment value over time with large purchases
- Prefer larger silver bars because they cost less than smaller ones
1 oz Silver Maple Coin
The Canadian 1 oz Silver Maple Leaf coin is one of the most famous silver coins in the world. Made by the Royal Canadian Mint in 1988, it has a maple leaf design and is made from .9999 pure silver, making it very pure.
This coin also includes advanced security features, like tiny laser-engraved markings in the design, to guarantee its authenticity, attracting both collectors and investors.
- Country of Origin: Canada
- Manufacturer: Royal Canadian Mint
- Tax (VAT/CGT): VAT 20%; CGT rate is usually 10% to 20% based on your income
- Purity: .9999 fine silver
- Size: 1 ounce
- Fineness: 999.9/1000
- Weight: 31.1 grams
Silver Maple Leaf is highly liquid, valued globally for its purity and intricate security features. With wide demand across North America, Asia, and the UK, it’s favored for ease of resale and credibility, making it suitable for international investors.
Who Buys 1 oz Silver Maple Coins?
- First-time buyers looking for a reliable and recognizable silver investment option.
- Smaller and first-time investors who can spend investment range between £100 and £5,000.
- Larger investors spend over £10,000 on 500-coin Monster Boxes.
- Looking to add physical silver to their portfolios to protect and diversify their wealth.
1 oz Silver Krugerrand Coin
South African 1 oz Silver Krugerrand is a silver variant of the world-renowned gold Krugerrand. It maintains the iconic design with a portrait of Paul Kruger on one side and a springbok antelope on the other.
Made by the South African Mint, this silver coin offers investors the chance to own a piece of one of the most historically significant bullion brands.
- Country of Origin: South Africa
- Manufacturer: South African Mint
- Tax (VAT/CGT): VAT 20% applies in the UK; CGT-free as legal tender
- Purity: .999 fine silver
- Size: 1 ounce
- Fineness: 999/1000
- Weight: 31.1 grams
With global recognition and a trusted brand name, the Silver Krugerrand holds a high resale value and is an ideal choice for investors looking to diversify their portfolio with internationally recognized silver coins.
Who Buys 1 oz Silver Krugerrand Coins?
- Small and First-Time Investors: Individuals investing between £150 and £6,000, looking for a reliable way to enter the silver market.
- Large Investors: Those wanting to protect against inflation and diversify their portfolios with significant silver holdings.
- Investors Unconcerned with CGT: Buyers who value the coin’s tax-free status because it is legal tender.
- Long-Term Investors: People planning to hold the coins for a long time, expecting their value to increase.
- Gift Givers: Individuals buy the coins as unique gifts, valuing their beauty and value.
Additional Noteworthy Silver Investments
Queen’s Beasts and Tudor Beasts Series
Queen’s Beasts and Royal Tudor Beasts series from The Royal Mint are popular among collectors and investors alike for their unique designs and limited-edition releases.
Each coin in the series is inspired by heraldic beasts, representing historical symbols of the UK’s monarchy. These coins, especially in silver, hold added value for collectors due to their rarity and artistic appeal.
The latest releases, such as the Tudor Dragon in the Tudor Beasts series, continue to attract interest for their intricate designs and high .9999 purity, making them sought-after items for both collecting and investment
500g Silver Bar
A 500g silver bar is ideal for investors who seek a balance between larger bars and smaller coins. These bars are typically available from major mints and are known for their .999 purity, offering good value for bulk buyers.
Due to their moderate size, 500g bars are easier to store than 1kg or 5kg bars, while still providing cost-efficiency compared to smaller pieces. They are often a favored choice for investors focusing on silver as a long-term holding.
Austrian Silver Philharmonic Coin
The Austrian Silver Philharmonic Coin is renowned worldwide for its classic musical-themed design, produced by the Austrian Mint. This coin has a high .999 purity and enjoys significant demand across Europe, North America, and Asia.
It is highly liquid and easily recognizable, making it a great choice for investors interested in internationally recognized coins with a stable resale market. The Silver Philharmonic is VAT-applicable in the UK but offers CGT-free status, adding to its appeal among UK investors
Essential Tips for First-Time Silver Investors in the UK
- Storage Solutions
For investing in physical silver, secure storage is important. Options include:
- Home Safes: A quality fireproof safe allows easy access and control over your silver. Keep it in a discreet area of your home for extra safety.
- Vault Storage: Many choose secure vaults from banks or private companies that specialize in precious metals. Vaults offer added security and insurance but may charge fees.
- Allocated vs. Unallocated Storage: Allocated storage means specific silver items are set aside for you, while unallocated storage pools silver with others. Allocated storage is usually safer for clear ownership.
2. Understanding Premiums
When buying silver, premiums are the extra costs above the spot price. Here’s how to evaluate them:
- Coins vs. Bars: Coins often have higher premiums due to minting costs, while bars usually have lower premiums, making them cheaper for bulk purchases.
- Size and Brand: Smaller items like 1-ounce coins often have higher premiums than larger bars (1kg or 5kg). Trusted brands may also have slightly higher premiums but offer reliability and easier resale.
- Market Conditions: Premiums can change based on demand. During high-demand times, premiums may rise, so it’s important to stay informed.
3. Selling and Resale
To sell silver effectively, consider:
- Finding Buyers: Selling to reputable dealers or bullion exchanges is secure. Private buyers might pay more but come with higher risk.
- Timing the Sale: Watch silver prices and sell when they are high to maximize returns, as prices can fluctuate based on economic factors.
- Item Condition: Keep your silver in good condition, as tarnished or damaged items may sell for less. Use protective cases and handle them carefully.
4. Tax Implications (VAT and CGT)
Tax matters are important for UK silver investors:
- VAT: Silver purchases usually have VAT at the standard rate, unlike gold, which is VAT-exempt. Some silver stored overseas or bought through certain schemes may qualify for exemptions.
- Capital Gains Tax (CGT): CGT generally doesn’t apply to most silver investments unless profits exceed the annual allowance. However, UK Silver Britannia coins are CGT-exempt as they are legal tender.
FAQs
What are the best silver investments for UK investors?
Popular options include 1oz coins like the Britannia and Maple, as well as larger bars like 1kg and 5kg for bulk investment.
Are silver coins or bars better for investment?
Coins offer flexibility and often come with tax advantages, while bars generally have lower premiums, making them ideal for bulk investments.
Do I need to pay VAT on silver investments?
Silver bars are subject to VAT in the UK, but certain coins, like the Britannia, are VAT-free, offering a tax-efficient option.
Why is the 1oz Silver Britannia Coin so popular in the UK?
The 1oz Britannia is VAT-exempt, CGT-free, and backed by The Royal Mint, making it highly appealing for UK investors.
How do 1kg and 5kg silver bars compare as investments?
1kg and 5kg bars offer lower premiums and are ideal for investors looking to acquire silver in larger quantities at reduced rates.
Are international silver coins like the Maple and Krugerrand good for UK investors?
Yes, international coins like the Canadian Maple and South African Krugerrand are popular globally, offering high liquidity and easy resale.
What makes silver a good investment?
Silver’s durability and historical stability make it an ideal choice for diversifying portfolios, especially during economic shifts.
What should I know about premiums?
Premiums reflect the added costs over the silver’s spot price, often higher on coins due to minting costs and collector demand.
How is silver stored for maximum security?
Storage options range from home safes to professional vaults and even tax-efficient bonded storage facilities.