Precious Metals Guide

Buying Gold or Silver: What You Need to Know

At The Silver Mountain, you can purchase physical precious metals in the form of bars or bullion coins. We supply only products from accredited refiners with official Good Delivery status. This certification ensures that your gold and silver are globally recognized and easy to trade anywhere in the world.

Silver: Attractive for Private Buyers Thanks to the Margin Scheme

In Europe, silver is considered an industrial product and is therefore subject to 21% VAT. This makes silver bars less appealing to private buyers, as VAT cannot be reclaimed and significantly increases the purchase price.

Silver coins are a more favorable option for individuals. These fall under the margin scheme, meaning VAT is charged only on the dealer’s profit margin—not on the full silver value. This makes them more affordable. In addition, coins come in smaller denominations, making them easier to trade and internationally recognized.

Popular silver bullion coins include:

• Maple Leaf (Canada)
• Philharmoniker (Austria)
• Silver Eagle (United States)

These coins are minted in 1 troy ounce (31.103 grams) of pure silver with a minimum fineness of 99.9%.

Gold: VAT-Exempt and Globally Recognized

Investment gold is exempt from VAT, making it attractive for both private and business buyers. Gold is available in a wide range of weights—from 1 gram up to 1 kilogram—in both bars and coins. The larger the weight, the lower the relative production costs—and therefore the lower the premium over the gold price.

For larger amounts, gold bars are usually the most cost-effective option due to their lower price per gram. Gold coins, on the other hand, are more practical and liquid, especially in smaller denominations.

Well-known gold coins include:

• Krugerrand (South Africa)
• American Eagle (United States)
• Gulden Ten-Guilder Coins (Netherlands – mainly traded locally)

Coins or Bars: What’s the Difference?

Both bars and coins are suitable for investment purposes. Coins are typically minted in 1 troy ounce, a globally accepted standard. Bars are available in a wide variety of weights and are often more cost-efficient starting from 50 grams and up.

Liquidity and Resale

Smaller denominations—such as coins or bars of 1 troy ounce, 50 grams, or 100 grams—are generally easier to sell. Their lower value makes resale more accessible. The current buy-back prices for your products can always be found on our website, where you can also view the spread (the difference between buying and selling prices).

How Are Gold and Silver Prices Determined?

The base for all product prices is the current spot price of gold or silver. On top of that come:

• Production costs (mint premium or fabrication fee for bars)
• Shipping and insurance costs
• The dealer’s margin
• 21% VAT where applicable (on silver bars)

For silver coins under the margin scheme, VAT is only applied to the dealer’s margin, substantially reducing the total price for private buyers.

In Summary: Which Option Suits You Best?

Your choice between bars or coins, gold or silver, depends on:

• Your budget
• Your goal (long-term holding or easy liquidity)
• Your status as a private or business buyer

Our Precious Metals Guide helps you step-by-step to make the right selection. Prefer personal advice? Our specialists are happy to assist you. Please contact us to discuss the options, or visit our The Hague office for an introductory consultation.