VAT Free Silver Bullion

vat free silver bullion

Is there a way to buy VAT free silver bullion? By buying VAT free silver you will be able to save as much as 20%+ on your silver bullion purchases. The trick is to know from whom to buy as some bullion dealers, on top of not charging VAT, actually will offer considerably better prices than local distributors.

After having read this post you will know how to find and buy the cheapest VAT free silver bullion.

We will go through the following areas:

  1. Why buying silver from local distributors is too expensive
  2. Buying VAT free silver from Estonia and SIngapore
  3. Why buy silver?
  4. What VAT free silver you should buy
  5. Where to buy VAT free silver

1. Why buying silver from local distributors is too expensive

In most of the EU silver is VAT liable, meaning you have to pay tax on top of the spot silver price. This has to do with twofold use of silver – it’s both a precious metal but also an industrial metal. Gold, which isn’t an industrial metal is VAT free or tax free.

So how does the fact that silver is VAT levied affect you as a buyer of physical silver bullion?

Well, it simply means that it will take you up to almost a 30% increase in spot silver to break even on any purchase that you make. That’s before we even start looking at buy back prices and at what prices smaller numbers of silver coins are sold at. Furthermore, silver is sold at a premium – an additional mark up from the spot price – of around 10% that you also need to add to your calculation. In times of turmoil the premiums will rise. During the 2008 financial crisis silver premiums rose up to 90% for Silver Eagle coins.

So even before you’ve put your coins in the safe you can be “under water” by A LOT on your purchase – in the best case scenario. Not ideal.

So what can you do about this? Nothing, if you look at the bigger bullion firms websites. They’d like to discourage you from buying silver.

2. Buying VAT free silver from Estonia and Singapore

vat free silver bullion

The two easiest methods to buy VAT free silver is through Estonia and Singapore.

Singapore has since October 2012 zero VAT on most bullion products. In Estonia, silver coins which are legal tender are not levied with VAT/Sales tax.

A simple price comparison between a couple of the best silver bullion distributors and the biggest UK bullion distributor looks something like this:

Buy prices for silver bullion coins – 1 coin of American Silver Eagle

Estonia bullion dealer – £12.09

Singapore bullion dealer – £12.09

Online UK bullion dealer – £23.52

Online UK bullion dealer buy back price – £9.54

As you can see the differences are staggering. If you buy from a UK dealer as per the example above you will be under water by 60% from day 1….. That means prices will have to rise by almost 150% for you to break even…..

Buying the cheapest silver bullion can only be done from locations such as Estonia and Singapore.

3. Why buy silver?


It may not be apparent to everyone why buying silver bullion is a good idea today. Below I will outline some of the main reason.

There are many reasons for why you should buy silver. Part of the reasons have to do with silver being a precious metal and part of it with silver being an industrial metal.

When it comes to the advantages of silver as a precious metal you can find both compelling historical reasons for buying silver bullion, but also more current reasons. The historical reasons for owning silver have to do with wealth preservation and protection of purchasing power. There are few assets that can compete with silver in this sense. Today, we also face a tidal wave of central bank stimulus and currency devaluation that are eroding the value of fiat currencies. Silver offers a way of protecting yourself against this.

Compared to gold silver offers some additional advantages. Silver is an industrial metal, its price is also at an attractive level in comparison to gold and finally silver offers more potential than gold.

Next we look closer at the current reasons for buying VAT free silver bullion, after which we can examine the difference between buying gold bullion and buying silver bullion.

Silver offers you a way of insuring yourself against the ramifications of the flood of central bank stimulus we are seeing throughout the world. This is a monetary experiment of unprecedented scale. The consequences of this excess money supply will be rising asset prices and inflation – which will erode the value of savings and purchasing power. Fiat currencies can be printed at whim with the push of a button. Silver on the other hand can’t be manufactured out of thin air. The annual production of silver is for example far, far less than the fourfold increase in the U.S. monetary base we’ve seen the last 10 years. Japan is another good example where the central bank is trying to double the money supply in just a couple of years – an effort with no current comparison. Silver which is much more scarce will therefore preserve its value much better than any fiat currency can.

In many western and developed countries interest rates are very low and inflation is higher – in some cases much higher than the official numbers show. This is called negative real interest rates which is something positive for silver since it lowers the opportunity cost of holding it. There is always a storage cost associated with precious metals which to some would make it more attractive to hold treasuries, bonds or money in a savings account – but if the real return is negative silver will protect the value of the savings better.

Silver is furthermore insurance against unknown events, turmoil and crisis’s.  In the past when there’s been turmoil silver has better protected value than any fiat currency.


Silver can also protect your wealth and purchasing power at a time when many governments have very high debt-to-GDP ratios. In many cases these ratios are at levels – 90% plus – where we’ve previously never seen repayments…unless it’s been made in debased currencies. Eventually, this will raise inflation to very high levels. In a hyperinflation scenario, silver will work as a hedge.

Apart from what we’ve just discussed, silver offers some additional potential today in comparison with gold.

Silver has the possibility of producing higher returns than gold. Since silver is considered being more volatile than gold it can move quicker and higher (or lower) than gold can. If the fundamentals are right, which they are today, silver can produce outsized returns. This makes silver especially interesting today.

Silver is also used in industry and the demand is growing continuously. Industrial applications for silver are for example solar panels, cell phones, water purification, cars etc.


The last important factor for silver is the so-called “gold silver ratio”. It is defined as the price of gold divided by the price of silver.

The graph below shows the gold silver ratio between 1687 to 2012.


Over the years this ratio has varied a lot. Since 1687 the ratio has been between 14.4 to 99.76. Over this period the average gold to silver ratio was 27.28. During 2012 the ratio has been between 50-60. In 2011, when silver peaked just below 50 the ratio was at its lowest since 1983, at a level of 32. This means that silver in relation to gold was at its priciest point for 30 years.

It is important to understand that the ratio can change for two reasons. The price of gold can go down and/or the price of silver can go up. Given the general fundamentals for precious metals let’s assume that gold isn’t overvalued. That means that silver still have room to rise in relation to the historical gold silver ratio average of 27.28.

The natural occurring ratio of silver vs gold in the earth is 17:1 which corresponds well to the ratio displayed in the graph between 1687-1882.

Since the beginning of the 1990s silver has clearly been on a rise versus gold, thereby decreasing the ratio, so the overall trend is that silver is appreciating versus gold. If silver was to return to it’s historical average, with a ratio of between 17:1 to 27.28:1, the silver price would be between $65-$104 (given a gold price per ounce of $1772). That leaves room for a significant price increase from the current level.

The gold silver ratio should not be used as the sole tool for timing investments in silver, but it does add to the range of positive drivers for silver.

Silver is also a very difficult metal to trade. Due to its price volatility it has often been described as “the devils metal”…or as one trader from HSBC put it “like gold on crack”. My point here is just to caution you on taking on too much risk when investing in silver securities, especially leveraged silver securities. Physical ownership of silver, which predominantly acts as a crisis hedge and value preservation, not speculation, is something very different. Physical silver bullion is something you most likely will buy and never let go of as it will continue to increase in value.

By now you should probably see the full range of advantages for buying VAT free silver bullion. Click on the links below to find out where and how to buy and store silver bullion.

4. What VAT free silver you should buy


You have a few choices when it comes to the type of silver bullion you buy:

1. Vault grams silver


This is plain and simple, bullion by the gram. You make incremental purchases of physical bullion. It’s a good choice if you can’t afford purchasing single coins and bars, but today the prices of coins are so low that this shouldn’t really make a difference for you. Cheap silver bullion can be found elsewhere.

I have some reservations with buying vault grams as this sort of defeats the purpose of buying silver bullion as an insurance in the first place. You can never pickup your vault gram and bring them with you as you can with other silver bullion products. It can’t be used as money either. If you are looking for pure speculation then there are other vehicles which may be more suitable. If you need help with making a decision on what silver bullion to buy then click here:

2. Silver bullion coins


Silver bullion coins come in many types. Some of the most common ones are Canadian Maple Leafs, American Eagles and Austrian Philharmonics.

3. Silver bullion bars


Silver bullion bars can be purchased in various sizes. Typically, the spreads are smaller than for coins but they becomes less portable. Some well known names are Metalor, Umicore and PAMP.

4. Numismatic and semi-numismatic silver coins


You can also choose to buy numismatics (collector coins) and semi-numismatics (which have a high silver content) and thus tend to have a stronger correlation to the spot price of silver. This is a bit trickier to get started with as you need to have some knowledge of what type of coins are popular. Starting with the most well known names and types followed by diversifying into more unusual coins is often a sensible approach.

5. Where to buy VAT free silver

My preferred suppliers of tax free silver and vat free silver are:

Singapore VAT free silver bullion Singapore is the premiere bullion dealer in Singapore. The company was founded by the people behind Swedens dominating bullion distributor – Liberty Silver Sweden. Bullion Star Singapore provides a wide range of products and the possibility of both direct delivery and local storage, which is great if you are looking for international diversification.

Singapore VAT free silver:

Want to know what silver bullion to buy from BullionStar? Click here for more information: what silver bullion to buy offers you a whole two years of free storage in Singapore – the safest banking destination in the world

Estonia VAT free silver bullion

Liberty Silver Estonia

Liberty Silver Estonia has been operating since 2011. The company was started by the people behind and Liberty Silver Sweden – two of the main bullion distributors in their operating locations Sweden and Singapore. LibertySilver Estonia has a wide range of gold and silver bullion products and provides efficient delivery straight to your home.

Estonia VAT free silver:


Buy VAT free silver video

Have a look at the video below for hands-on information on buying VAT free bullion.

Read other posts

1. VAT Free Silver Bullion

2. Buy VAT Free UK Silver

3. How To Buy Tax Free Silver

4. Cheapest Silver Bullion

5. Buy Silver Bullion

6. What Silver Bullion Should I Buy

7. Buy Gold Bullion

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5 thoughts on “VAT Free Silver Bullion

  1. Daniel

    Thanks for the good post. I’ve bought through vat free silver through both bullionstar and Liberty Silver Estonia. Happy with the services provided! Daniel

  2. Kieth Adams

    I made my first order of vat free silver bullion from LS estonia recently. Everythign arrived as it was supposed to. Why did I ever bother to buy from uk based bullion distributors. Thanks // Kieth

  3. Michael Beck

    Buying tax free silver from estonia works just fine for me, allways good service , if i have som questions they Are allways on the Phone to help you , i have only good to say about Them .
    I have also tryed to buy som silver from very poor service no help and i will never trust them buying silver from them again ever .


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