Gold or silver? What to invest in
Gold and silver are among the oldest stores of value, and both have a place in a portfolio. In practice, however, they differ in many ways – from price and taxation to volatility. Let's compare them clearly so you can decide which metal (or which combination) suits you.
The key difference: VAT
The most important difference for investors is tax. Investment gold is exempt from VAT within the EU (under the statutory conditions). Investment silver is not exempt and is subject to VAT. Silver therefore starts with a tax "handicap" that the metal price must first make up.
Price and availability
Silver is significantly cheaper per ounce than gold, so you can start with a small budget and buy gradually with ease. Gold, by contrast, concentrates high value into a small volume – 100 g of gold fits in your palm, while the same value in silver weighs several kilograms, making storage and transport more demanding.
Volatility and behaviour in a crisis
Silver is more volatile – it swings more, both up and down. It has large industrial demand (electronics, photovoltaics), so it also reacts to the economic cycle. Gold behaves more calmly and is traditionally seen as a "safe haven". Simply put: silver offers higher movement potential at the cost of greater fluctuation.
The gold-silver ratio
Investors watch the gold-silver ratio – how many ounces of silver you get for one ounce of gold. When the ratio is historically high, silver is seen as relatively cheaper, and vice versa. It is a guideline, not a guarantee of profit.
Comparison of gold and silver
| Criterion | Investment gold | Investment silver |
|---|---|---|
| VAT | Exempt (within the EU) | Subject to VAT |
| Entry price | Higher per ounce | Lower per ounce |
| Volatility | Lower | Higher |
| Value vs. volume | High (easy storage) | Lower (bulky, heavy) |
| Industrial demand | Smaller | Large |
| Role in portfolio | Stable core | More dynamic complement |
So what to choose?
There is no single right answer – it depends on your goal and tolerance for fluctuation. Gold is often the choice for a stable, tax-efficient core. Silver attracts with a lower entry price and higher movement potential, but comes with VAT and greater swings. Many investors combine both – gold as the base, silver as a smaller dynamic complement.
Practical tips
- With both metals, watch the premium – the markup over the metal price; it is higher for smaller weights.
- You don't have to time the market – regular buying helps.
- With silver, factor in the volume and more demanding storage of larger quantities.
Frequently asked questions (FAQ)
Why is silver subject to VAT and gold is not?
Investment gold is exempt from VAT within the EU under the statutory conditions. Investment silver does not have this exemption, so VAT is added.
Which earns more – gold or silver?
This cannot be guaranteed in advance. Silver has higher movement potential but also higher fluctuation risk. Past performance is no guarantee of future results.
Can I hold both?
Yes, the combination is common. Gold forms the stable core, silver the smaller, more dynamic part. The ratio is up to you.
Where can I buy gold and silver?
You will find new bars and coins in our offer of investment gold and investment silver. We also buy back – see buyback conditions.
This article is for information only and does not constitute investment or tax advice. More in the Risk disclosure section.
