Are you interested in investing in silver? At DKgold you will find all the expertise you need for investments in physical silver. We will gladly explain the methods for investing in silver and how to proceed without paying VAT. We will tell you why there is an increasing demand for silver and why the price of silver might rise.
During the past two decades, investments in silver have yielded an average annual return of 9%. With inflation currently on the rise, we observe an above average interest in investing in precious metals. Gold and silver offer excellent protection against inflation.
The fundamentals of silver are different from those of gold. Most of the demand for silver comes from the industry. The production of electric cars, solar panels, computers and phones requires silver. Investors in silver as well as jewelry and silverware manufacturing also demand their share of this precious metal.
Every year, the demand for silver exceeds the annual supply. The resulting shortage of silver will, according to analysts, continue to increase over the coming years. The gold situation is completely different! Gold is not really used up, as is the case with silver. No less than 180,000 tons of gold are used and/or stored around the globe. This vast quantity grows annually as a result of mining.
The demand for silver combined with the decreasing silver production makes silver an attractive investment. Investing in silver could be done by buying either physical silver or stocks of silver mines. Besides stocks of actual silver mines, one could also buy stocks of mining companies producing silver as a byproduct.
A so-called primary silver mine derives more than 50% of its revenue from the mining of silver. This makes investing in silver mining stocks a complex business. The price movements of these stocks are substantial and do not suit the profile of the average investor. Buying physical silver is a good alternative.
One of the advantages of investing in physical silver, as opposed to silver mining stocks, is the fact that the ‘base case’ is clear cut. Supply and demand determine the price of physical silver.
Investing in silver bars or coins?
Would you like to invest in physical silver? If so, you could either buy silver bars or opt for buying silver coins. Before actually purchasing one of these products, it would be wise to carefully consider all their aspects, since there is a substantial price difference between silver bars and silver coins.
Silver coins, for instance, are sold under the so-called margin scheme, meaning you will only pay VAT on their profit margin and not on the coin itself. However, as of the end of September 2022 the margin has been abolished in Germany. Nearly all silver coins that are sold in the Netherlands are being delivered through Germany. This has resulted in much higher prices.
Silver bars, on the other hand, are taxed with 21% VAT. They are considered an industrial commodity and VAT is therefore applicable. The price of a silver bar of 1 kilo including VAT currently equals that of the price of a silver coin of 1 troy ounce.
However, it is also possible to invest in silver bars without being taxed with VAT. This is possible by storing the bars in a customs depot, resulting in a 25% reduction (currently some €250) of the price per kilo when compared to silver coins.
A DKgold account will allow you to invest in silver bars without VAT!
Most of our customers are private individuals and entrepreneurs buying silver with the aim of protecting their purchasing power. To them, wealth preservation is important. The real interest (interest minus inflation) has been negative for over five years now, resulting in a decreasing value of fiat money. In addition to being an important industrial commodity, silver is also a monetary metal since it has served as a means of payment for a long period of time.
Investing in silver also involves risks. The price of silver is volatile, meaning that the value of your investment is subject to substantial movements as well. During the past 20 years, however, the price of silver has gone up by an average of some 9% annually.
With your DKgold account you are able to buy silver regularly. This allows you to build up additional wealth, an ideal way to establish your retirement funds or save some extra money for that purpose.
Investing in silver is an excellent way to build up your capital. Silver has been one of the best performing assets of the previous years.
More and more investors turn to silver as an investment. The reasons behind this may vary, from wishing to add some diversity to their investment portfolio, having an alternative to saving money or answering the rapid rise of inflation.
With DKgold as your guide and partner, investing in silver is easy and safe! Your online DKgold account will allow you to buy silver bars without paying VAT. The bars will be stored in vaults.
You are the legal owner of the silver, meaning that you will not lose your investment in the unlikely event of a bankruptcy of DKgold. Your ownerships of the silver excludes these risks.
Investing in silver through DKgold has the unique advantage of not being obliged to pay any VAT on the silver itself. Sharp prices, a safe procedure and sell-back guarantee.
Since 1825, DKgold has been active as a specialist on the market of investments in silver. For the past two centuries we have sold silver to entrepreneurs and private customers. Through your account with us, everything you need for your investments in silver is within reach.
Investing online in physical silver.
DKgold sells silver bars already starting from a weight of 1 kilo. This makes investing in silver very accessible. You could, for instance, buy a number of silver bars every month.
The silver bars that you have bought, are stored in a vault, under your name. Through the dashboard of your account you are able to easily follow your investment and check up on the return.
Every month, you are able to profit from our silver investment offers.
One of the offers is a 50% discount on the premium. The premium consists of the production costs of the silver bar, as well as the transportation costs in order to get the bar from the refinery to the vault.
DKgold has very profitable agreements with its suppliers. Any volume discount that we get, we will offer to our customers through this discount.
You are also able to profit from our SALE in case we have left-over supply, for instance if there are more customers selling than buying silver. The SALE allows you to invest in silver against the best prices in all of Europe.
Our storage costs are the lowest in the market. This is an important aspect of our way of handling your investment, since many customers invest in silver for the long term.
Silver bars are often stored for as long as 10 or 20 years.
The level of storage costs is therefore an important factor when it comes to the return on your investment in silver.
DKgold charges 0.8% of your investment annually for storage.
Good to know: during the past 20 years, the price of silver has gone up by an average of 9% annually.