Precious Metals Guide
If you want to invest in gold or silver, you can choose between a selection of various coins and bars in different sizes and purities. The quantity of options might be overwhelming and how do you know which product to buy? At this page we have put together a list of all different products where you can find more information about the pricing, the premiums and the spread.
Pricing, premium and spread
|Pricing||The current price for the product|
|Premium||The amount you pay above gold value or silver value|
|Spread||The difference between our buying and selling price for the product|
Most common products
In general, the most common products are the 1 ounce gold coins including the Maple Leaf and Krugerrand. In the United States most people prefer the Eagles, elsewhere most customers would purchase Maple Leaf or Krugerrand coins. Also gold bars are in high demand, they are available in all sizes from 1 gram to 1 kilogram. The premium decreases significantly if you buy larger gold bars and that’s the cheapest option to buy gold. Gold coins are more convenient if you want to be able to trade gold in smaller quantities.
If you buy silver, we strongly advise you to buy silver coins instead of silver bars. The most common coins include the silver Philharmonic, Maple Leaf, Kangaroo and Eagles. Also 1 kilogram coins are available including the Kookaburra, Koala and Lunar. They are slightly more expensive though. Silver bars are charged with 21% VAT and therefore more expensive. The spread on silver bars will therefore be more than 21% - making it a rather expensive option for private customers.
Guide for Gold Coins
Gold bullion coins are a well-known, liquid option to invest in gold.
- Recognized world-wide and minted in 1 ounce fine gold;
- 0% VAT rate, available at a low premium;
- Buy back guarantee up to 100% of the current gold price;
- Available in various sizes and with various designs.
Guide for goldbars
Gold bars are most likely to be the cheapest option to buy gold. We offer gold bars from 1gr up to 1 kilogram.
- All bars we sell are from Good Delivery refineries;
- A buy back guarantee applies to all gold bars, 98% of gold price;
- Most refineries include a certificate of authenticity;
- Known worldwide and well-tradable.
Guide for silver coins
Silver coins will be the best option for the private investor.
- We sell all silver coins at the VAT Margin scheme;
- 1 ounce silver coins are easy to trade and recognized;
- A buy back guarantee of 107% of the current silver price;
- Silver is very cheap compared to gold and accessible for each budget.
Guide for silver bars
Silver bars are charged with 21% VAT, our pricing is VAT included. Silver bars are the best option for companies.
- Silver bars from LBMA refineries including Umicore;
- Minted in the highest purity of at least 99.9% silver;
- Newly minted silver bars in original packaging;
- Buy back guarantee of 95-98% of the silver price
|Product description||You buy||You sell||Spread (%)|
|1 Kilo silver bar Umicore||€ 927,00||€ 657,50||40.97%|
|1 kilo silver bar||€ 914,00||€ 657,50||38.99%|
|5 Kilo silver bar Umicore||€ 4.674,00||€ 3.288,00||42.15%|
|5 Kilo silver bar various melters||€ 4.482,00||€ 3.288,00||36.31%|
|1 Kilogram silver bar VAT-free Asahi (storage in Switzerland)||€ 759,50||€ 678,50||11.96%|
|100 Troy ounce silver bar VAT-free Royal Canadian Mint (storage in Switzerland)||€ 2.404,00||€ 2.110,00||13.95%|
|1000 Troy ounce silver bar VAT-free (storage in Switzerland)||€ 22.255,00||€ 21.100,00||5.48%|
|1 kilo silver bar Germania Mint||€ 943,00||€ 657,50||43.4%|
Disclaimer: the data we share at this page might not always be up to date.
No rights may be derived from the information, recommendations or calculated values contained in this page.
Buying gold or silver?
At The Silver Mountain you can buy gold or silver. We offer a variety of bullion coins including the Maple Leaf coins from Canada and the Krugerrand from South-Africa. Gold bars and silver bars are also available. We only offer bars purchased from “Good Delivery” approved refineries to ensure their purity and weight.
If you want to invest in silver, you should know that silver is primarily considered to be an industrial good. For that reason silver is charged with 21% VAT. An exception applies for all silver coins that are legal tender and/or can be purchased as a collectible. The silver coins can be sold under the margin scheme, where the seller only charges 21% VAT on their profit instead of the entire amount. Silver coins will always be cheaper to buy than silver bars and if you want to sell your silver in the future you will get a better price for silver coins in comparison to silver bars.
The most common silver coins include the Maple Leaf, Philharmonic and Silver Eagle. Since the credit crunch in 2008 mintage of these coins has exploded and demand is on a steady level. These coins are minted in 1 troy ounce (31.103 grams) and contain at least 99.9 fine silver.
If you want to buy gold, you have more interesting options available. Gold is considered to be an investment and gold bullion is not charged with VAT (0% Rate). For that reason gold is available at a very low premium. Since gold is at the moment roughly 70x more expensive than silver the producing costs or premium is relatively low compared to the gold value, whereas silver is rather expensive to purchase. (Imagine you own a private mint and you are minting coins in gold, silver or any other metal. The cost price will be roughly the same for the minting process regardless of the metal you choose to use. So if your cost price is $1, that is a very high percentage of the current silver price ($16) and a very low percentage of the current gold price ($1.220).
Gold 1 ounce coins are very popular among investors because they contain exactly 1 troy ounce fine gold. The gold market price is also listed in 1 ounce fine gold – making the value of your coin very easy to determine. If you buy rare coins or old coins an expert would need to determine the value. Gold bullion coins are also available in smaller sizes from ½ ounce up to 1/10 ounce. The smallest coins will be rather expensive and are not suited for large investors in gold bullion.
Most people would buy gold coins if they want to invest a relatively common amount. If you want to invest a larger amount you can also consider gold bars. The gold bars are cheaper (at least, all sizes from 50 gram or higher) because the production costs and premium will be lower. Please keep in mind that gold bars are a little bit more difficult to sell and you will get a lower price if you sell your gold bars. At our overview provided above you can find information about the spread between gold coins and gold bars.
All gold bars are minted by LBMA approved refineries. Each gold bar should contain their weight, purity and a logo or mark of the producer. Some producers also include a certificate of authenticity.
How is the price of gold and silver determined?
All our prices are based upon the current gold price and silver price. We update our pricing automatically each 3 to 5 minutes to ensure we are able to offer you an accurate price. You pay a premium over spot because you buy a physical product that has to be minted and shipped to you. Also the refinery and we as a reseller make a small profit on these products.
Spreads for gold and silver
All prices include the following aspects:
- Intrinsic value (current gold price or silver price);
- Production costs or premium to produce the coin or bar;
- Profit for refinery and reseller;
- VAT (if applicable)
As you can see in the image above the premium of gold is always very low, regardless if you buy gold coins or gold bars. With silver it is a different story, especially for silver bars. Silver bars are charged with 21% VAT.
Do you have any questions about purchasing gold or silver?
We are available by phone at +31 (0)35 20 31 380