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Silver And 20% Tax


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#1 MrBlonde

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Posted 08 April 2012 - 02:47 PM

Well I own a few bars of silver. I have purchased in the UK and of course I have paid 20% tax on my purchases.

With some rough maths I need silver to hit $45 to break even. So thats a "rough" 40% price rise to break even.
My purchases were made between $28-40 per ounce.

I know the fundementals of silver and why the silver price may hit $100.

But I was just wondering your opinions on silver? How do you buy your silver?

Do you buy a small amount and put the rest into gold?

Whats your opinions on something like goldmoney or goldsavers where you dont take physical?

#2 p.p.

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Posted 08 April 2012 - 04:01 PM

Well I own a few bars of silver. I have purchased in the UK and of course I have paid 20% tax on my purchases.

With some rough maths I need silver to hit $45 to break even. So thats a "rough" 40% price rise to break even.
My purchases were made between $28-40 per ounce.

I know the fundementals of silver and why the silver price may hit $100.

But I was just wondering your opinions on silver? How do you buy your silver?

Do you buy a small amount and put the rest into gold?

Whats your opinions on something like goldmoney or goldsavers where you dont take physical?


lots of things to consider

1. buy silver at gm

2. silver bullion coins tend to carry their vat premium thru to the point of sale as long as you do not sell them to a dealer, see what they are fetching on ebay

3. i gave up buying silver with vat added years ago as i buy pre 1920/1947 uk silver coins and foreign silver coins, i also buy scrap which i am gathering to be melted and cast by birmingham assay office which have reasonable costs and give you an assay cert


there are other possibilities as well

Edited by p.p., 08 April 2012 - 04:02 PM.

even a stopped clock gives the right time twice a day

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#3 MrBlonde

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Posted 08 April 2012 - 08:17 PM

lots of things to consider

1. buy silver at gm

2. silver bullion coins tend to carry their vat premium thru to the point of sale as long as you do not sell them to a dealer, see what they are fetching on ebay

3. i gave up buying silver with vat added years ago as i buy pre 1920/1947 uk silver coins and foreign silver coins, i also buy scrap which i am gathering to be melted and cast by birmingham assay office which have reasonable costs and give you an assay cert


there are other possibilities as well


Thank you for your response. I also had been collecting old british coinage but was unaware I could get it melted and cast.

I will look into this right away. :) Thank You again.

#4 MrBlonde

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Posted 10 April 2012 - 06:15 PM

lots of things to consider

1. buy silver at gm

2. silver bullion coins tend to carry their vat premium thru to the point of sale as long as you do not sell them to a dealer, see what they are fetching on ebay

3. i gave up buying silver with vat added years ago as i buy pre 1920/1947 uk silver coins and foreign silver coins, i also buy scrap which i am gathering to be melted and cast by birmingham assay office which have reasonable costs and give you an assay cert


there are other possibilities as well


Hi,

So i looked into melting and casting as you said and their prices are reasonable. Thanks.

So......as i already collect some old british coinage pre 1947. Do you think it is worth melting them down or not?

Im not sure how i feel about melting them. :)

#5 p.p.

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Posted 10 April 2012 - 08:06 PM

Hi,

So i looked into melting and casting as you said and their prices are reasonable. Thanks.

So......as i already collect some old british coinage pre 1947. Do you think it is worth melting them down or not?

Im not sure how i feel about melting them. :)


hi

i would avoid using coins for the melt, scrap for me usually consists of spoons, watch cases, mirror backs, jewellery, knife handles etc. once you start looking and find supplies you will come across good sources, i get all my scrap under spot

the end result will be a bar with an assay cert not far away from .925, though some european silver will be .800 etc
even a stopped clock gives the right time twice a day

When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears

my blog

#6 MrBlonde

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Posted 10 April 2012 - 09:42 PM

hi

i would avoid using coins for the melt, scrap for me usually consists of spoons, watch cases, mirror backs, jewellery, knife handles etc. once you start looking and find supplies you will come across good sources, i get all my scrap under spot

the end result will be a bar with an assay cert not far away from .925, though some european silver will be .800 etc


So the bars will be sterling silver? Did i read that wrong?

Dont they seperate the silver and the other metal?

#7 p.p.

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Posted 11 April 2012 - 08:10 AM

So the bars will be sterling silver? Did i read that wrong?

Dont they seperate the silver and the other metal?


Their melt service will include a dip sample which is used for the assay cert, so if you are using scrap sterling you will end up with a sterling bar

Refining silver is a whole new ball game. Personally speaking, i like sterling bars, these bars were used for centuries by the spanish, dutch, english etc.
even a stopped clock gives the right time twice a day

When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears

my blog

#8 p.p.

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Posted 11 April 2012 - 08:29 AM

Just to add, the spanish bars would have been. 900, but you get my drift....
even a stopped clock gives the right time twice a day

When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears

my blog

#9 p.p.

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Posted 11 April 2012 - 08:38 AM

Ok my bad, i had certainly seen sterling ingots from dutch and english wrecks, and similarly hordes of spainsh reales would have been .900, but in the case of spanish ingots, these were shipped pure;

http://www.newworldt...atocha-bars.htm
even a stopped clock gives the right time twice a day

When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears

my blog

#10 MrBlonde

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Posted 11 April 2012 - 11:25 AM

Their melt service will include a dip sample which is used for the assay cert, so if you are using scrap sterling you will end up with a sterling bar

Refining silver is a whole new ball game. Personally speaking, i like sterling bars, these bars were used for centuries by the spanish, dutch, english etc.


Thanks for the information dude. I shall go away and look at my options again and work out what is best for me.

#11 MSE refugee

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Posted 12 April 2012 - 10:05 AM

I have been using the Birmingham Assay office for the past 18 months to get scrap melted.
You have to send at least 50oz to make it cost effective with cost of the assay and postal charges.
Also I have looked into get the scrap refined but refiners are only interested in huge amounts of silver.

#12 MrBlonde

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Posted 13 April 2012 - 11:11 PM

I have been using the Birmingham Assay office for the past 18 months to get scrap melted.
You have to send at least 50oz to make it cost effective with cost of the assay and postal charges.
Also I have looked into get the scrap refined but refiners are only interested in huge amounts of silver.


What do the bars look like? Rough? Smooth? Do you have a photo that I could possibly see?

#13 MSE refugee

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Posted 14 April 2012 - 03:32 AM

What do the bars look like? Rough? Smooth? Do you have a photo that I could possibly see?

I am sorry I don't have any pictures and I have hidden them away.
The bars vary in quality some of the lab technicians seem to take more of a pride in their work than others.
I have a couple of really nice bars that are small and chunky,but in general they are long and narrow.
Buying scrap is quite a cost effective way of accumulating silver as there is still vast quantities of sterling silver on ebay or at your local auction house.

#14 ReggiePerrin

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Posted 14 April 2012 - 09:27 PM

Another method for buying silver that's a bit cheaper than the UK is to purchase it in Germany, France, Belgium, etc. A number of European countries only charge 7% VAT on `Silver coins; I tend to go for 1oz Austrian Philharmonics.

Bullion, rounds and bars, have VAT applied at 19%. Although if you fancy bars look out for mintbars, they're legal tender so only 7% vat.

You might want to have a look at http://www.vatea.de

An example of a Mintbar: Rwanda 1Kg

#15 MrBlonde

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Posted 14 April 2012 - 09:31 PM

Another method for buying silver that's a bit cheaper than the UK is to purchase it in Germany, France, Belgium, etc. A number of European countries only charge 7% VAT on `Silver coins; I tend to go for 1oz Austrian Philharmonics.

Bullion, rounds and bars, have VAT applied at 19%. Although if you fancy bars look out for mintbars, they're legal tender so only 7% vat.

You might want to have a look at http://www.vatea.de

An example of a Mintbar: Rwanda 1Kg


Dont you get charged VAT when it enters the country?




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