Silver’s Going Crazy After Brexit, But Here’s Why The British Aren’t Buying

From Compare Silver Prices

“The main thing about Brexit and the rush into gold, and why silver is left behind, is that in the UK there’s a value added tax on silver,” David Morgan, of www.TheMorganReport.com, told CSP. “That’s why most people in the UK buy gold. They don’t want to pay the VAT on top of standard dealer margins. That’s why you haven’t seen people move into silver in the UK.”

VAT is in effect throughout European Union for silver purchases in most cases. In the UK, VAT is 20%. Gold has not been subject to VAT for awhile.

That despite the United Kingdom used silver as money. It used to be on the silver standard – hence, the pound sterling. The silver standard goes back to the Middle Ages. English currency was mostly silver until 1344, when a gold coin was put into circulation. Silver was the legal basis for the sterling until 1816, when Great Britain opted for a gold standard.

Silver bullion investors, to be sure, don’t pay VAT if they hold the silver in an accredited vault in an accredited account, though VAT is paid upon delivery.

There are other ways around VAT. One can buy silver coins through companies that acquire the silver coins through a VAT compliant process whereby investors don’t pay the tax directly. Others focus on buying coins minted by national mints, such as the Royal Mint.

From Compare Silver Prices