Investing guide · UK edition
How to Invest in Silver in the UK
The short version
This guide explains how to invest in silver in the UK: coins and bars, silver funds, ISAs, mining shares and trading. For each route you’ll see how it works, who it suits, the costs and risks, and how to get started.
- Unlike gold, physical silver bought in the UK usually carries 20% VAT3, so the price must rise a lot before you break even.
- A physically backed silver ETC avoids VAT and is the cheapest way for most people to follow the silver price7.
- Silver is more volatile than gold. Big rises and falls are common.
- Silver bars can’t be held in a pension like gold bars can8.
- Silver pays no income. Most people keep it to a small part of their savings.
Compare the ways to invest
The main ways to invest in silver in the UK. Tap a route to jump to its card.
| Route | You own | Typical costs | Risk | Best for |
|---|---|---|---|---|
| Physical silver: coins and bars | Real silver you can hold | 20% VAT on most purchases, plus premiums, storage and insurance | High | Collectors and long-term holders who accept the VAT cost |
| Silver ETCs on the stock market | Shares in a product backed by vaulted silver | Yearly fee around 0.2%–0.5%, plus dealing charges | High | Most beginners; ISA investors |
| Silver in an ISA or SIPP | Silver ETCs or mining funds | Account fees plus fund costs | High | Long-term savers |
| Silver mining shares and funds | Shares in mining companies | Dealing charges; fund fees | Very high | Investors comfortable with big swings |
| Trading silver (CFDs and spread bets) | Nothing: a contract on the price | Spread, overnight financing, possible commission | Very high | Experienced traders only |
| Silver futures and options | A contract on silver for a future date | Commissions and exchange fees; margin | Very high | Experienced traders and hedgers |
| Silver-backed digital tokens | A token or app balance with a claim on silver | Exchange and app fees | High | Crypto users who accept extra risk |
Words you’ll see
- Spot price
- The price for silver delivered now, quoted per troy ounce. It’s the benchmark that dealers price from1.
- Troy ounce
- The unit for precious metals, about 31.1 grams2.
- Premium
- The extra you pay above spot for a coin or bar. On silver, premiums plus VAT can add a large percentage to the price.
- Spread
- The gap between a dealer’s selling price and buy-back price. With silver it’s often wide, especially because you can’t reclaim VAT when you sell.
- VAT
- Value Added Tax, charged at 20% on most silver bullion in the UK3.
- ETC (exchange-traded commodity)
- A product listed on the stock exchange that tracks a commodity. Physically backed silver ETCs hold real silver in a vault.
- Leverage
- Using borrowed money to control a bigger position than your deposit. It magnifies gains and losses.
Ways to invest
Way 1 of 7
Physical silver: coins and bars
Owning the metal, but usually paying VAT on top.
- You own
- Real silver you can hold
- Typical costs
- 20% VAT on most purchases, plus premiums, storage and insurance
- Risk
- High
- Best for
- Collectors and long-term holders who accept the VAT cost
How it works
You buy coins (such as silver Britannias) or bars from a dealer or The Royal Mint. Investment-grade gold is VAT-free, but silver isn’t treated as investment gold4, so standard 20% VAT normally applies3.
Because you pay VAT but can’t reclaim it when you sell, silver often needs to rise 25% or more just to get your money back. Some dealers offer cheaper routes, such as second-hand coins sold under the VAT margin scheme or silver kept in a bonded vault outside the UK. Ask exactly how VAT is applied.
Silver Britannias are UK legal tender. HMRC’s manual names sovereigns and gold Britannias as exempt from Capital Gains Tax because they’re currency5; silver Britannias are generally treated the same way, but the manual doesn’t name them, so check if large gains are involved.
Who it suits
- Long-term holders who want metal they control and accept the VAT cost.
- Collectors who enjoy coins.
Risks and costs
- VAT and premiums make silver one of the most expensive ways to buy a commodity.
- Volatility: silver can fall much further than gold in a short time.
- Bulk: silver takes far more space than gold for the same value, so storage and insurance cost more per pound invested.
- Physical bullion isn’t a regulated investment, so FCA protections generally don’t apply.
How to get started
- Work out your break-even: total price including VAT and delivery, against the dealer’s buy-back price.
- Compare two or three established dealers, and ask about VAT margin scheme or overseas storage options.
- Plan storage and check your home insurance limits.
- Keep invoices for tax records.
Where to buy
Well-known UK names, listed as examples, not recommendations. Compare total prices, including VAT and delivery.
- The Royal MintSilver Britannias and bars.
- Bullion By Post
- Atkinsons Bullion
- BullionVaultVaulted silver. Check current fees and how VAT is handled.
Way 2 of 7
Silver ETCs on the stock market
No VAT, low cost, and easy to buy and sell.
- You own
- Shares in a product backed by vaulted silver
- Typical costs
- Yearly fee around 0.2%–0.5%, plus dealing charges
- Risk
- High
- Best for
- Most beginners; ISA investors
How it works
A physically backed silver ETC holds silver bars in a vault, and its price tracks silver minus a yearly fee. It trades on the London Stock Exchange through any investment platform. No VAT is charged on buying shares.
For example, the iShares Physical Silver ETC (ticker SSLN) has an ongoing charge of 0.21% a year7.
Who it suits
- Beginners who want silver exposure without VAT or storage.
- ISA investors.
Risks and costs
- Silver’s price swings are large, so an ETC can fall sharply too.
- Silver is priced in US dollars, so a stronger pound can reduce returns.
- You can’t take delivery of the metal.
- Outside an ISA or SIPP, gains above your Capital Gains Tax allowance are taxable6.
How to get started
- Open an FCA-authorised platform account.
- Search for “physical silver ETC” and compare fees.
- Buy inside a Stocks and Shares ISA if you can.
- Keep it to a small, planned share of your savings.
Where to buy it
Big UK investment platforms. Examples only; fees vary.
- Hargreaves Lansdown
- AJ Bell
- Fidelity UK
- interactive investorLink not checked: confirm it before relying on it
Way 3 of 7
Silver in an ISA or SIPP
Tax-free accounts work for silver funds, not for silver bars.
- You own
- Silver ETCs or mining funds
- Typical costs
- Account fees plus fund costs
- Risk
- High
- Best for
- Long-term savers
How it works
Many silver ETCs and mining funds can be held in a Stocks and Shares ISA or a SIPP, where gains are free of UK tax.
Pensions are different for physical metal: HMRC’s exception allows investment-grade gold bars in pensions8, but silver isn’t included, so silver bars would face heavy tax charges in a pension.
Who it suits
- Anyone with spare ISA allowance who wants silver in a long-term mix.
Risks and costs
- Same price risk as silver, plus account fees.
- SIPP money is locked until pension age.
- Tax rules can change.
How to get started
- Check your remaining ISA allowance.
- Confirm the product is ISA or SIPP eligible on your platform.
Learn more on this site: Position sizing: how much to put in one investment
Way 4 of 7
Silver mining shares and funds
Companies that mine silver, often alongside other metals.
- You own
- Shares in mining companies
- Typical costs
- Dealing charges; fund fees
- Risk
- Very high
- Best for
- Investors comfortable with big swings
How it works
Silver miners’ profits move sharply with the silver price, so their shares can rise or fall faster than silver itself. Many “silver” miners also produce gold, copper, lead or zinc.
Search your platform for “silver miners ETF” or “silver mining fund” for a spread of companies.
Who it suits
- People who want more growth potential and accept higher risk.
Risks and costs
- Company and country risks can sink a share even if silver rises.
- Smaller miners can be very volatile.
How to get started
- Prefer a diversified fund.
- Check fees and holdings.
- Hold it in an ISA if you can.
Learn more on this site: Trading Basics
Way 5 of 7
Trading silver (CFDs and spread bets)
Short-term leveraged bets on the silver price. Very high risk.
- You own
- Nothing: a contract on the price
- Typical costs
- Spread, overnight financing, possible commission
- Risk
- Very high
- Best for
- Experienced traders only
How it works
CFDs and spread bets let you bet on silver moving up or down without owning it. For retail clients, UK rules limit leverage on commodities other than gold, including silver, to 10 to 19.
Providers must close positions when your funds fall to half the required margin, protect you from a negative balance, and publish the percentage of clients who lose money10.
Who it suits
- Experienced traders with strict risk limits. Not suitable for most beginners.
Risks and costs
- Most retail CFD accounts lose money. Check each provider’s published figure.
- Silver’s sharp moves plus leverage can wipe out a deposit quickly.
- Spread betting profits are usually free of Capital Gains Tax and CFD profits are taxable, but this depends on your circumstances.
How to get started
- Learn orders, stops and position sizing first.
- Use an FCA-authorised provider.
- Practise on a demo account.
Where to buy
FCA-authorised providers. Examples only.
- IG
- CMC MarketsLink not checked: confirm it before relying on it
Learn more on this site: Trading Basics · Position sizing and the 1% rule · ATR stop losses · Pattern Trainer: practise reading a chart
Way 6 of 7
Silver futures and options
Exchange contracts for experienced traders.
- You own
- A contract on silver for a future date
- Typical costs
- Commissions and exchange fees; margin
- Risk
- Very high
- Best for
- Experienced traders and hedgers
How it works
COMEX silver futures cover 5,000 troy ounces per standard contract, and micro silver futures cover 1,000 ounces11. UK traders reach them through brokers offering US futures.
Who it suits
- Experienced traders who understand margin and expiry.
Risks and costs
- Losses can exceed your deposit.
- US dollar pricing adds currency risk.
- Contracts expire and must be rolled.
How to get started
- Learn margin and expiry rules.
- Start with micro contracts.
Learn more on this site: Covered calls: how options work
Way 7 of 7
Silver-backed digital tokens
Crypto tokens or app balances claiming silver backing.
- You own
- A token or app balance with a claim on silver
- Typical costs
- Exchange and app fees
- Risk
- High
- Best for
- Crypto users who accept extra risk
How it works
Some apps and crypto issuers offer tokens or balances they say are backed by vaulted silver.
Who it suits
- People already comfortable with crypto platforms.
Risks and costs
- Most cryptoassets are unregulated, and the FCA warns you could lose all your money12.
- You rely on the issuer holding the metal.
How to get started
- Check who holds the silver and the audit reports.
- Keep amounts small.
Silver and tax in the UK
Silver is taxed less kindly than gold in the UK.
VAT
Capital Gains Tax
Gains on silver bars, foreign coins and ETCs outside an ISA or SIPP can be taxable. For 2026/27 the first £3,000 of total gains is tax-free, then 18% or 24% applies depending on your income6.
UK legal tender coins are exempt as currency5. That clearly covers sovereigns and gold Britannias; silver Britannias are generally treated the same, but check with HMRC or an adviser for large amounts.
ISAs and pensions
Silver ETCs and funds in an ISA or SIPP are free of Capital Gains Tax. Physical silver isn’t covered by the pension exception that applies to investment-grade gold8.
How to avoid scams and bad deals
Silver is often pushed with hype about shortages and huge price targets. Protect yourself:
- Ignore predictions of guaranteed or enormous price rises.
- Check any investment firm on the FCA Register and the FCA warning list13.
- Work out the full cost including VAT before buying physical silver.
- Avoid “limited edition” coins sold as investments at big premiums.
- Never pay a personal bank account or in crypto for a bullion purchase.
Frequently asked questions
Is silver a good investment?
Silver can diversify savings and is used in industry as well as for investment. But it’s more volatile than gold, pays no income, and can fall for years. Most people keep it to a small slice of their savings.
Do you pay VAT on silver in the UK?
Usually yes: most silver bullion carries 20% VAT3. Silver ETCs bought on the stock market aren’t subject to VAT.
Are silver Britannias tax-free?
They’re UK legal tender, and legal tender coins are exempt from Capital Gains Tax as currency5. HMRC’s manual explicitly names gold Britannias and sovereigns; silver Britannias are generally treated the same, but confirm for large amounts.
What is the cheapest way to invest in silver in the UK?
For most people, a physically backed silver ETC: no VAT, and yearly fees from around 0.2%7.
Can I hold silver in a SIPP?
Through silver ETCs or funds, yes. Physical silver bars aren’t covered by HMRC’s pension exception, which is for investment-grade gold only8.
Is silver riskier than gold?
Generally yes. Silver’s price usually moves more than gold’s, both up and down, partly because so much of its demand comes from industry.
Sources and further reading
Numbers in the guide, like 1, point to these sources. Prices, fees and tax rules change, so check the latest version before you act.
- The OTC Guide: The Price. LBMA (London Bullion Market Association).
- The OTC Guide: Conversion table (troy ounces and grams). LBMA.
- Bullion & VAT explained. The Royal Mint.
- Gold acquisitions, imports, investments and VAT (VAT Notice 701/21). HM Revenue & Customs, GOV.UK.
- CG78305 – Foreign currency (sovereigns and Britannia gold coins). HMRC Capital Gains Manual, GOV.UK.
- Capital Gains Tax rates and allowances. HM Revenue & Customs, GOV.UK.
- iShares Physical Silver ETC (SSLN): charges and key documents. Fidelity International (UK).
- PTM125100 – Taxable property: tangible moveable property (investment-grade gold in pensions). HMRC Pensions Tax Manual, GOV.UK.
- PS19/18: Restricting contract for difference products sold to retail clients. Financial Conduct Authority.
- FCA proposes permanent measures for retail CFDs and binary options. Financial Conduct Authority.
- Micro Metals Futures and Options. CME Group.
- FCA warns consumers of the risks of investments advertising high returns based on cryptoassets. Financial Conduct Authority.
- Protect yourself from scams. Financial Conduct Authority.