Buyer's guide · Silver
Why Choose Silver
The short answer
People choose silver because it is a physical precious metal with a far lower price per ounce than gold, which makes it easy to start small, give as a gift or build up over time. In the UK, silver carries VAT at 20%, but legal-tender silver coins such as Britannias are exempt from Capital Gains Tax.
Key facts
- VAT on silver
- 20% standard rate
- CGT on Silver Britannias
- Exempt as sterling currency
- 1 oz Silver Britannia
- 999 fine · 38.61 mm · £2
- 1 troy ounce
- 31.1035 g
- LBMA Good Delivery silver
- At least 999.0 fine
- UK silver hallmark standards
- 999 · 958 · 925 · 800
Why do people buy silver?
People buy silver because a meaningful amount costs far less than gold, because its many coin designs are a pleasure to collect, and because, like gold, it is a physical metal they can own outright.
A single 1 oz Silver Britannia is an affordable first piece, and silver is where many of the most collectable designs appear, from proof coins featuring well-known characters to Silverback silver notes. Silver also makes a lasting gift for birthdays, christenings and anniversaries.
Silver’s lower price per ounce has a flip side: for the same value it takes up far more space than gold, and in the UK it carries VAT, so its price must rise further before you break even. The price can fall as well as rise.
Compare the two metals in Gold vs silver.
What forms of silver can I buy?
You can buy silver as bullion coins such as the Britannia and American Eagle, collectable and proof coins, bars, and silver notes such as Silverbacks. Bullion coins are the simplest to value and resell; collectables are bought as much for their design as for their metal.
| Bullion coins | Collectable coins | Bars | Silver notes | |
|---|---|---|---|---|
| Examples | 1 oz Britannia; 1 oz American Eagle | Character and anniversary proofs | Minted and cast bars | Silverbacks |
| Purity | 999 (Britannia) | Stated on each product | Stated by the refiner | .999 silver in polymer |
| UK VAT | 20% | 20% | 20% | VAT where applicable |
| UK CGT | Britannias exempt; foreign coins chargeable | UK legal-tender coins exempt | Gains can be chargeable | Not sterling currency |
| Best for | Building a holding; easy resale | Gifts and collecting | Larger weights | Gifts and small amounts |
Shop silver coins, silver notes or all silver.
Is there VAT on silver in the UK?
Yes. Silver coins and bars are charged VAT at the standard rate of 20% in the UK, whatever their country of issue. The VAT exemption for investment gold does not extend to silver.
VAT is part of the price you pay. A private individual selling silver does not charge VAT, but cannot recover the VAT paid when buying, so silver needs a larger price rise than gold before a purchase and sale break even. At The Yard Mint, prices include VAT where applicable and the VAT treatment is shown on each product page.
Read more in Gold vs silver.
Do I pay Capital Gains Tax on silver?
Not on UK legal-tender silver coins such as the Silver Britannia, which count as sterling currency and are exempt from Capital Gains Tax. Gains on silver bars and on foreign coins, such as the American Eagle, can be taxable if your total gains exceed your annual tax-free allowance.
HMRC’s Capital Gains Manual states that coins which are sterling currency are not chargeable assets, and that only coins which are legal tender count as currency. GOV.UK gives the tax-free allowance for individuals as £3,000 at the time of review. Tax depends on your circumstances; speak to a qualified adviser.
Gold or silver: which should I choose?
Choose gold if tax efficiency and compact storage matter most to you; choose silver if you want a lower entry price, more designs to collect or gifts at a modest cost.
| Gold | Silver | |
|---|---|---|
| UK VAT | Investment gold exempt | 20% |
| CGT on UK legal-tender coins | Exempt (Britannia, post-1837 Sovereign) | Exempt (Britannia) |
| Price per ounce | Much higher | Much lower |
| Space for the same value | Compact | Far bulkier |
| 1 oz Britannia | 999.9 fine · 32.69 mm · £100 | 999 fine · 38.61 mm · £2 |
| LBMA Good Delivery minimum | 995.0 fine | 999.0 fine |
See Why choose gold or the full comparison in Gold vs silver.
How is silver purity expressed?
Silver purity is expressed as fineness in parts per thousand, so 999 means 99.9% pure silver, the standard of the Silver Britannia. UK hallmarking recognises four silver standards: 999, 958, 925 and 800.
Coins and bullion are exempt from UK hallmarking, so investment silver is identified by the fineness and weight stated by its mint or refiner. On London’s wholesale market, the LBMA requires Good Delivery silver bars to be at least 999.0 fine. Our Dealers Notice explains UK hallmarks.
How should I store silver?
Store silver somewhere secure and dry, in the capsules or tubes it came in, or keep it in a professional vault. Silver needs much more space than gold for the same value, which matters as a holding grows.
With Yard Mint vaulting, 1 oz Silver Britannias are stored in the UK and 1 oz Silver Eagles with our customer storage in the USA. You retain ownership of the metals held in your account, monthly storage is currently free, and transaction and withdrawal fees apply; see Terms, rates & fees. Assets in our vault are insured against loss, theft and fraud.
Our guide to storage at home vs vaulting covers both options.
How do I sell silver?
To sell silver, request a quote, send your items once you accept it, and receive payment after they are verified. The Yard Mint buys silver bars and coins this way, paying directly to your bank account; we don’t currently buy jewellery or scrap.
Indicative silver buying rates per troy ounce and per gram are shown on our Sell Gold or Silver page; your final quote depends on your items and verification. Vaulted holdings can be sold back to us from your vault.
For spreads and timing, read How to sell gold and silver in the UK.
Silver through the ages
Silver is a great gift or investment
Silver, with the chemical symbol Ag derived from 'argentum', meaning 'grey' or 'shining', is a precious metal valued for its elegance, quality, and strength since 700BC.
Legend says it holds magical properties, offering protection and harnessing pure natural energies.
Add real weight to your portfolio with physical silver. Explore our premium collection and discover why investors and stackers trust us to protect their wealth.
Frequently asked questions
Is silver a good investment?
It depends on your goals and circumstances, and The Yard Mint does not provide investment or tax advice. The value of precious metals can fall as well as rise, and you may get back less than you paid. A qualified financial adviser can help you decide whether silver suits you.
Why is there VAT on silver but not on gold?
Because UK VAT law exempts investment gold only. Silver has no equivalent exemption, so silver coins and bars are charged at the standard rate of 20%.
What are the specifications of a 1 oz Silver Britannia?
The Royal Mint’s 1 oz Silver Britannia contains one troy ounce of 999 fine silver, measures 38.61 mm across and has a face value of £2.
Are Silver Britannias exempt from Capital Gains Tax?
Yes, for UK individuals. Silver Britannias are UK legal tender, so they count as sterling currency, which is not a chargeable asset for Capital Gains Tax.
Can I store silver with The Yard Mint?
Yes. Our vaulted range includes 1 oz Silver Britannias stored in the UK and 1 oz Silver Eagles stored with our customer storage in the USA. You retain ownership, monthly storage is currently free, and transaction and withdrawal fees apply.
What silver does The Yard Mint buy?
We buy silver bars and coins. We don’t currently buy jewellery or scrap. Include the product name, weight and purity where known so we can quote for your items.
Shop silver
Find your silver
Prefer us to look after it? Explore vaulting. Ready to sell? Request a quote. Weighing up gold? Why choose gold.