Why invest in silver?

Gold is not the only metal that should not be missing in your investment portfolio. Silver is also an excellent investment tool, and a number of conservative investors who prefer it to gold is growing. Besides the interesting potential for appreciation, it also offers the unique advantages of industrial metal.

Is it worth investing in silver?

Most domestic households prefer traditional means of investment, such as building society account or pension scheme. However, if you save your money in more ways, you will also spread the inevitable risk associated with investing. Therefore, you should not miss precious metals in your portfolio.

Today, industry gets a share of 85% of the world's silver production - it is the second most used industrial commodity and is used mainly in the production of cars and photovoltaic cells. States do not have strategic reserves of physical silver today, and its only source is mining. It is not possible to simply increase this - deposits are declining and costs are rising every year. Consumption of silver thus exceeds mining, and its reserves will be extracted within a few decades when maintaining current production. This, of course, is reflected in the price of silver, which is currently very undervalued, and thus invites to a bargain.

Only 15% of silver production remains for investment.    Most analysts agree that the price of silver will naturally rise…

Buying investment silver should be seen as a long-term to generational matter - for example, as an alternative to retirement savings. In this case, silver prevents the devaluation of funds.

How to invest in silver?

Investment ingots are available in many different weights and sizes and are highly liquid. The same applies to foreign investment coins, which are issued in a number of nominal values. This allows you to easily regulate how much money you invest. They offer a better price per gram, but are 100% dependent on fluctuations in the price of silver on the stock market.

Commemorative coins of the Czech National Bank or coins and medals of the Czech Mint provide silver with a dimension of investment in art. This compensates fluctuations in precious metal prices and the burden of value added taxes. Limited schedule of issuance and top processing make coins and medals a sought-after collector's item, and the value of a comprehensive collection is many times greater than the value of a precious metal. Investing in coins and medals is an interesting alternative for those who want to save their funds in precious metals, but apart from physical metal, they also want to own something that has its artistic value, which will increase within the time.

Learn more here.

Besides the traditional purchase of investment products, the Czech Mint also offers you the opportunity to gradually invest via Gold Account.

Taxation of investment silver

Non-payers of value added tax, i.e. ordinary investors, buy silver at the full price including VAT of 21% and do not add tax to the subsequent sale. VAT payers also buy silver at prices including VAT, but they can deduct this tax in the next tax period. When selling, they will increase the price by VAT - if the payer is the counterparty, he or she will also deduct the tax, and if he or she is not a payer, he or she cannot deduct the tax. The nominal value of silver coins is not burdened with tax and only the amount above nominal value is charged.

The sale of silver is exempt from income tax in the case of natural persons. However, frequent and repeated sales could look like an illegal business. If silver is included in business assets for the performance of business activities, income tax does not apply to sales only in cases where it has been a part of it for more than 5 years.

Czech Mint