Third investment – Silver coins

Gold and silver have been some of the oldest investments in the world. During crisis times precious metals are investors first choice. During the last years, silver has dropped heavily in value. From around USD 46 per 1 oz in 2011, the price today stays at USD 15.36 per 1 oz (circa EUR 13.48). The most traditional way to invest in silver is to invest physically into coins or bars.

Until the end of 2013 silver coins had the advantage of the reduced VAT of 7% compared to silver bars where the VAT of 19% was applied. Due to a change in law in 2013 also silver coins are now taxed at 19% beginning January 1st, 2014. The coin merchants quickly found a loophole for the new taxation. Silver coin imports from outside the EU are still taxed with the import VAT of 7%. Due to the “Differenzbesteuerung” (differential taxation), the coin merchants can still sell the coins under nearly the same conditions as before.

Taking these new taxation rules into account it makes sense to buy coins as the taxation is significantly lower than with bars. I decided to get 5 Canadian Maple Leaf 1 oz coins. The cheapest I could find in the Internet that day was EUR 17.04 plus EUR 6.90 for delivery. This makes EUR 18.42 per 1 oz coin.