Silver coins

Physical silver coins are a popular choice for investors who want to diversify their portfolio, protect their savings against inflation, or build long-term wealth. Compared to many other investment options, investment-grade silver coins offer the advantage of owning a tangible asset that has been recognised as a store of value for centuries. However, there are several important factors to consider before investing in silver.

VAT on Silver Coins

Unlike investment gold, which is generally exempt from VAT in Germany, silver coins and silver bars are subject to value-added tax (VAT). This additional tax increases the purchase price of physical silver. As a result, investors usually pay a premium above the current silver spot price when buying silver coins. This premium covers VAT, minting, distribution, and dealer costs.

When selling silver coins, the resale price is primarily based on the current silver market price and the demand for the specific coin. Therefore, the difference between the purchase and selling price should always be considered when planning an investment.

Silver Is Best Suited for Long-Term Investors

Physical silver is generally considered a long-term investment. Because buying and selling prices include dealer premiums and transaction costs, investors should allow sufficient time for the silver price to appreciate before expecting positive returns. A longer holding period helps compensate for the initial purchase premium and allows investors to benefit from potential increases in the precious metals market.

Silver can also serve as a portfolio diversifier, helping reduce overall investment risk during periods of economic uncertainty or inflation.

Which Silver Coins Offer the Best Value?

For investors seeking the lowest premium per ounce of silver, internationally recognised bullion coins are usually the preferred choice. Coins with a weight of one troy ounce generally provide the best balance between liquidity, affordability, and value. Smaller denominations, such as half-ounce or quarter-ounce coins, often carry significantly higher premiums relative to their silver content.

Among the most popular one-ounce silver investment coins available in Germany are:

• Vienna Philharmonic
• Maple Leaf
• American Eagle
• Australian Kangaroo
• Krugerrand

These bullion coins are produced in large quantities by internationally respected mints, making them widely traded and easy to buy or sell. They are commonly available individually, in protective coin tubes containing 20 or 25 coins, or in larger investment boxes for bulk purchases.

Tax Treatment of Physical Silver Investments

Although silver is subject to VAT when purchased, it benefits from favourable tax treatment under German income tax regulations.

If physical silver coins or silver bars are held for more than 12 months before being sold, any capital gains are generally tax-free for private investors. If the holding period is less than one year, profits may be subject to personal income tax under the rules governing private sales transactions.

Private investors should also be aware of the applicable tax exemption threshold. If taxable gains exceed the legally permitted exemption limit, the entire profit must be declared to the tax authorities and taxed accordingly. Unlike shares or interest income, withholding tax does not apply to physical precious metals. Instead, the taxation rules for private sales are used.

Is Investing in Silver Coins Worth It?

Silver coins can be an attractive investment for individuals looking to preserve purchasing power, diversify their assets, and own physical precious metals. Choosing internationally recognised bullion coins, understanding VAT and tax regulations, and maintaining a long-term investment horizon are key factors that can help maximise the value of a silver investment.

Before making an investment decision, investors should compare premiums, verify authenticity, monitor the current silver price, and purchase only from reputable precious metal dealers.

Buy Silver Coins from Deutsches Feingoldhaus

At Deutsches Feingoldhaus, investors can choose from a carefully selected range of internationally recognized silver bullion coins, including the Vienna Philharmonic, Maple Leaf, American Eagle, Kangaroo, and Krugerrand. We source our precious metals from trusted mints and suppliers, ensuring authenticity, competitive pricing, and transparent premiums. Whether you are making your first silver investment or expanding an existing precious metals portfolio, our experienced team is here to help you choose the right products for your long-term investment goals. Browse our selection of silver coins online or contact us for expert guidance on building a secure physical precious metals portfolio.