The Perfect Silver Bar Purchase for You

The Perfect Silver Bar Purchase for You

You may be considering investing part of your assets in precious metal. After gold, silver is one of the most popular investments. Many novice investors are deterred because they lack the knowledge to invest in this product. Of course, no investment is risky, but with a few tips you can at least make an informed decision. That is why here are tips for prospective silver buyers. When you Buy silver bars Sydney then here are the options you can go for.

Do not buy unallocated silver if you can buy allocated silver with bar number assignment

As an advanced investor with a physical precious metal position, the words unallocated or allocated may be familiar English terms. These are not the first words that are immediately understood for the novice silver investor. It is important to know the difference before buying silver and having it stored with a provider. The meaning of the word unallocated has not been assigned or set aside. The word allocated means intended, distributed, or allocated.

What does this mean for you when you invest in unallocated silver?

In unallocated silver, the silver is in an unallocated pile. The silver is not allocated in order to facilitate the daily activities for a company. The investor does keep his position, but does not know exactly which silver bar is in his or her safe.

With allocated silver, the silver that is in a ‘stack’ is assigned to the buyer. This means that after purchase you immediately own 100% of your silver bar. If you purchase silver bars in storage, you will be allocated silver. In addition to being 100% owner, you will also be assigned a bar number. Getting a bar number assigned is a very important part of property verification. After all, it must be possible to prove that bar number X is yours.

Buy tax-free silver

Not every investor is aware that silver bars can also be bought tax-free. Depending on how and which type of silver bars you purchase, you do not pay tax. You read correctly: “no tax”. Because silver has a double application, it is not only used as an investment product, but mainly as an industrial raw material. Silver (85%) is used as a raw material in industry. In this country alone, 21% tax is already levied on silver. The amount of the tax percentage may differ per country.

When silver is related to business operations and is therefore a business asset, you can often reclaim your tax on a business purchase. However, if silver is purchased privately, you will soon have to pay 21% tax. This makes buying a kilo of silver a lot less attractive despite a relatively low entry price compared to gold or platinum.

Tax-free silver can only be purchased when stored in an accredited vault and allocated account. When the safe is located, the safe must be a bonded warehouse, so that the storage location is viewed by customs as a piece of no-man’s-land. The silver is therefore seen as: not imported. Silver that is not put into circulation is not subject to a tax levy. This tax charge only applies when the silver bars are taken out of the safe and enter free trade. If you want to purchase silver exempt from tax and store it outside the country, choose the storage location.

Bonnie Baldwin