Investment Silver

Why Save in Silver?

Investment silver, alongside gold, is one of the most sought-after assets for savings, especially for people seeking long-term security and protection of their investments from high inflation. Although silver is somewhat more volatile than gold, it also preserves its value over the long term.

The advantage of investment silver lies in its relatively low price, making it very accessible and a suitable medium for various purposes: for savings, gifting, or collecting certain coins. Silver is also a great instrument for those just beginning to invest in precious metals.

Its lower price compared to gold provides another benefit – the ability to diversify investments. This is extremely important, as it allows you to liquidate smaller amounts of products in case of need, rather than having to sell a much larger product.

For example, buying 30 coins weighing one fine ounce ensures greater divisibility compared to a one-kilogram bar, even though both represent the same weight in investment silver.

Silver is a limited resource and is vital for almost every industry, not just jewelry and technology production. Over 50% of annual silver production is used for industrial purposes, with over 10,000 different uses, making it the second most widely used product after oil.

It is easier to list the sectors where silver is not used than those where it is involved, and it would not be an exaggeration to say that the world we live in would be impossible without silver.

The guaranteed demand, which grows over time, and the stable price (in the past twenty years, its price in euros has increased sixfold) are the reasons why investors consider it a reliable asset in the long term.

Silver: A Metal of the Past and Future

The white metal has been used as money throughout human history, including in our country after the Liberation. Investment silver coins still serve this function, as they are legal tender with a nominal value in the countries they originate from.

Speaking about the history of silver as money, it’s interesting to note that for the past few centuries, the price ratio between silver and gold has been around 15:1. For example, in 1717, the great scientist Isaac Newton, who was also the director of the London Mint, fixed the exchange rate between these two metals at 15.5:1.

This means that 15.5 fine ounces of silver were equal to one ounce of gold. The last time this ratio was briefly recorded was on January 8, 1980. Over the past four decades, there has been a significant change in this ratio, averaging 60:1.

For this reason, many believe that in the modern world, silver is undervalued and that the white metal has significant growth potential.

What to Know When Investing in Silver

The silver coins and bars offered by Tavex are made of pure metal (fineness of .999) and are globally recognized and highly liquid. This means they can be sold for cash almost anywhere in the world at a known price. At Tavex, we specifically update prices every fifteen minutes to remain as close as possible to the global spot price in euros.

Unlike investment gold, silver bars and coins are subject to value-added tax (VAT) in our country.

Since silver is a soft metal, it is recommended to store silver products in the protective capsules they come in. We also advise handling them with gloves and keeping them safe from damage caused by dropping or other impacts, as this will reduce their buyback value.

Frequently Asked Questions

Where can I buy investment silver?

Our advice is to purchase investment silver from reputable dealers like Tavex, who have proven themselves in the markets they operate in, deliver products directly from refineries and mints, and offer clear buying and selling rates that are regularly updated.

You can make the purchase both in-person at our store or conveniently online. It is important to know that for purchases over €10,000, payment can only be made via bank transfer.

What is sterling silver?

Sterling silver is any silver with a purity of 925. It is the most common standard for silver purity and is used for both jewelry and flatware.

How should I store investment silver?

Proper storage is crucial for silver. It is recommended that silver coins, bars, and other investment products be kept in the protective capsules they come in and not be handled without gloves.

Pure silver is soft and can easily be damaged by impact. For investment silver coins and bars, any dents, scratches, or other damage will reduce their buyback price.

Is silver a good investment for 5 years?

Silver can be a good investment for a 5-year period. When purchasing silver in Serbia, a 20% VAT is applied, which means you will pay the silver price plus VAT at the time of purchase. However, if you later sell the silver, VAT is not applied to the sale. Therefore, we recommend purchasing silver as a long-term investment. Silver can be a good way to diversify your portfolio and benefit from the growth potential in the industry.

What are the trends in silver prices?

Silver prices can be subject to short-term fluctuations, but over the long term, the price is expected to rise due to increasing demand in industry, as well as economic and geopolitical factors.

Silver bars or silver coins?

Silver bars are great for investors who want larger quantities of silver with lower premiums and are not interested in collectible value.

Silver coins are better for investors who want smaller amounts of silver or who want to invest in collectible items with additional value, such as coins with historical significance or limited editions. In the end, many investors choose to diversify their investment and combine both forms – bars for larger quantities of silver and coins for collectible value and liquidity.

What does availability and pre-order mean?

When a product is marked as available, it is immediately ready for shipping or can be picked up in our office. Pre-order means that the product is currently out of stock but can be ordered. If you prepay for an unavailable product, once it is back in stock, it will be shipped to you or you can pick it up at our office.

What are the payment and delivery methods for investment silver?

All payments are exclusively in dinars. You can pay via bank transfer, payment slip, or in cash. Delivery can be made to your home address via D Express courier service (to your home address, parcel locker, or pick-up point), specialized transport by a security company, or you can pick it up personally at our office.

Is there a maximum quantity that can be purchased?

According to the Law on Preventing Money Laundering and Terrorist Financing (Official Gazette of the RS No. 113/2017, 91/2019, and 153/2020), a person purchasing goods in the Republic of Serbia may not make a cash payment of more than 1,160,000 dinars (10,000 euros in dinar equivalent) within the previous 365 days. If the purchase is made via bank transfer, there is no limit.