Europeans prefer gold over silver?

fastrudy

I don't know if everyone already knows this, but I read that European PM buyers prefer gold bullion over silver bullion. Couldn't figure out why until I read that in many European countries, gold bullion is traded freely, but silver bullion is taxed at the VAT rate!! Depending on the country it can add an additional 17% to the price.

tincup

That would sure tend to dampen the silver trade! Surprised to hear that.

mrearlygold

<< <i> Surprised to hear that. >>



Me too

ricko

I would like to hear the reasoning behind that... the VAT (value added tax) is usually for manufactured goods... Please post the rationale if you have it. Thanks, Cheers, RickO

tincup

Speaking of the different laws outside of our country.... I just sold an inexpensive coin on eBay to a bidder in India. (The bidder never should have bid on the item, since it was listed U.S. bidders only, but oh well...). Anyways, I was looking up the info on the USPS web site on what it would cost to ship to India.... and was surprised to find that coins, gold, and silver are prohibited to be mailed into India!! Kind of OT from the OP, but just found that to be interesting.... perhaps others are more familiar with the laws of the other countries...

mrearlygold

<< <i>Speaking of the different laws outside of our country.... I just sold an inexpensive coin on eBay to a bidder in India. (The bidder never should have bid on the item, since it was listed U.S. bidders only, but oh well...). Anyways, I was looking up the info on the USPS web site on what it would cost to ship to India.... and was surprised to find that coins, gold, and silver are prohibited to be mailed into India!! Kind of OT from the OP, but just found that to be interesting.... perhaps others are more familiar with the laws of the other countries... >>



I've never shipped to India but I have shipped to other parts of Asia. My insurance will only cover Fedex and a ryder which is .85 per $100.00

Speaking about laws, an old friend of mine in NJ went to Ceylon ( Sri Lanka ) with diamonds to trade for whatever the heck he was doing back then. They seized his diamonds on the way in. While sitting on a sidestreet smoking a "more" cigarette, a passerby traded him 2 honey star saphires for a carton of those dang cigarettes. Both stones were in the 80 Carat+ range and worth a heck of a lot more than those dang cigarettes.

291fifth

VAT's can be a minefield for the unwary, so can tariffs.

fastrudy

In many tax regimes, silver does not hold the special position that is often afforded to gold. For example, in the European Union the trading of recognised gold coins and bullion products is VAT exempt, but no such allowance is given to silver. This makes investment in silver coins or bullion less attractive for the private investor, due to the extra premium on purchases represented by the irrecoverable VAT (charged at 17.5% in the United Kingdom, and 19% in Germany, for example).

From "Silver as an investment", on Wikipedia.

BTW, in Sri Lanka you can pick up the sapphires in your garden after a good rain.

fastrudy

All EU countries must have a VAT. Minimum tax is 15%, maximum is 25%. Certain items are exempt or given a lower rate, but silver bullion is not amongst them.

ModernCrapNut

It's based on the same governmental greed that has some states here taxing coin transactions.

StampAlarm

No wonder silver is lagging gold then for percentage gain.



Jerry