One of the reasons for investing in precious metals is diversification, financial benefit from capital gains, and adequate shielding from currency devaluation. Silver has been used for centuries as one of the precious metals. However, investing in silver is not easy as it seems. If you’re looking to purchase silver bullion online, you may get lost in the options.
According to investment experts at goldbullionaustralia.com.au, you are more likely to be a victim of fraud without proper knowledge and guidance. To make things simple, here’s a list of questions you need to ask before buying silver bullion online.
What Are the Different Options When Investing in Precious Metals?
There are different ways of investing in precious metals like silver. You can buy physical metals like bullion coins or bullion bars. Another way is investing in silver is through exchange-traded funds. Every method of investment mentioned here has advantages and disadvantages.
Buying Precious Metals– When you buy silver bullion, you own it. Your physical asset is stored outside the financial system, and you can sell it whenever you want.
Exchange-Traded Funds– Investing in silver through ETFs offers convenience. However, you do not get physical silver in any form. When you buy silver ETFs, a lot depends on the financial institution that delivers ETFs. The financial institution may or may not fulfil their obligations. Hence, it is always sensible to invest in silver bullion.
Which Is Better? Silver Bullion Bars or Silver Bullion Coins
Both forms of silver bullion are suitable for buying. It mainly depends on your preferences. However, silver bullion coins are sold at an expensive price in comparison to bullion bars. There are several reasons, such as the difference between demand and supply and other factors.
Also, coins are easily recognisable and have lower transaction costs in comparison. People prefer silver bullion coins due to their high liquidity and ease of trading. For institutional buyers looking for larger investments, silver bullion bars are better options.
Do You Have to Pay GST on Silver Bullion Coins or Bars?
The Australia taxation rules on precious metals are similar to the UK and the US. They are neither friendly nor unfriendly. Silver bars and coins of 0.999 purity or higher are viewed as “investment grade,” and you must not pay GST. You need to understand not all silver bullion coins or bars are considered “investment grade,” and your purchase might be subjected to GST. If you are purchasing silver worth AUD 10,000 or more, it must be reported to the government.
Which Is the Best Silver Bullion to Buy?
You have many options in terms of buying silver bullion like the South African Mint or Krugerrand. You can also buy the Australian Kangaroo Silver coin made by the Royal Australian Mint in Canberra.
The company has legal tender status in Australia to make silver bullion coins and bars. According to experts, you should buy silver bullion from reputed brands and avoid bullion coins and bars from lesser-known countries.
These are some essential questions you may ask if buying silver bullion online. Make sure you buy silver bullion from reputed dealers who have experience of selling silver bullions in fluctuating markets.