As investors look for ways to protect and grow their wealth, precious metals continue to hold a strong appeal. While gold often dominates the conversation, silver has quietly gained the attention of those seeking an affordable, flexible, and tangible investment. If you are asking yourself, whether of not to buy silver coins, this guide will help you weigh the benefits and understand the role silver can play in a well-structured portfolio.
Why Silver Coins Are Worth Considering
Silver coins offer a unique combination of advantages that set them apart from other investment options. They provide tangible value, are widely recognised, and often come with tax benefits that make them particularly appealing for UK investors.
Main advantages of buying silver coins:
Affordability compared to gold
Strong market liquidity
Protection against inflation
Real-world demand from industry
Flexibility for different investment strategies
Whether you are new to investing or looking to diversify your holdings, silver coins could be a practical choice.
Silver Is More Accessible Than Gold
One of the key reasons many investors turn to silver is affordability. As of early 2025, the price of silver sits around £18 to £20 per troy ounce, while gold is close to £1,950 per ounce. This makes silver a more accessible starting point for those who want to invest in physical assets without committing a large sum.
Buying silver coins allows investors to build a precious metals portfolio at a much lower cost. It also offers the flexibility to purchase smaller amounts regularly, enabling you to steadily grow your holdings without needing to time the market perfectly.
Strong Industrial Demand for Silver
Unlike gold, silver has significant industrial uses. It is an essential component in products such as:
Solar panels
Electric vehicles
Medical devices
Electronics and batteries
This real-world demand supports the long-term value of silver. As technology continues to advance and the push for renewable energy grows, the need for silver is expected to increase.
According to the Silver Institute, industrial demand for silver reached over 600 million ounces in 2023, representing a major portion of total global silver usage. This industrial reliance creates a steady underpinning for silver prices, separate from investor behaviour alone.
Protection Against Inflation and Currency Risk
Like gold, silver has historically acted as a hedge against inflation. When the purchasing power of currency declines, physical assets like silver often retain or even increase in value.
Recent years have seen rising inflation across major economies, prompting renewed interest in silver as a store of value. Holding silver coins provides a tangible way to preserve your wealth outside of the banking system and traditional financial markets.
Silver's relatively low cost compared to gold also means that during periods of high inflation, silver often experiences sharper price movements, offering investors greater upside potential.
Liquidity and Global Recognition
Silver coins are easy to buy, sell, and trade. They are recognised and valued globally, making them one of the most liquid physical assets you can own.
Popular silver coins such as the Silver Britannia, American Eagle, and Canadian Maple Leaf are accepted by dealers worldwide and are simple to authenticate.
Liquidity is important because it gives you the freedom to access cash quickly if needed. When markets are volatile or when financial needs change, owning assets that can be sold easily is a clear advantage.
Factors that support liquidity:
Recognised mints and coin designs
Standardised weights and purities
Global demand across private investors and institutions
Tax Considerations for UK Investors
In the UK, some silver coins offer tax advantages that make them particularly attractive. For example, the Silver Britannia is classed as legal tender, which means it is exempt from Capital Gains Tax (CGT).
Although silver bullion is subject to VAT at the point of purchase, the ability to sell without incurring CGT can provide significant benefits, especially if your investment grows substantially over time.
Tax advantages to consider:
Legal tender coins (such as the Britannia) are CGT-exempt
No additional taxes when reselling CGT-exempt coins
Efficient estate planning tool for passing wealth to future generations
Choosing the right type of silver coin ensures you make the most of these tax benefits.
Flexibility in Building a Portfolio
Silver coins offer investors flexibility that larger investments often cannot match. You can start small, purchasing a few coins at a time, and build your collection gradually.
This approach has several benefits:
It allows you to average your purchase price over time
It reduces the pressure to time the market perfectly
It makes investing accessible even with modest budgets
Additionally, silver coins are easy to store securely at home or through professional storage providers. They take up relatively little space compared to their value, and insurance options are widely available.
Risk Factors to Consider
No investment is without risk, and it is important to be aware of the potential downsides when you buy silver coins.
Silver prices can be more volatile than gold. While this volatility can offer higher returns, it can also lead to larger short-term losses.
Other points to consider:
Storage costs, if you hold a large quantity
VAT charges on silver bullion purchases
Market fluctuations tied to industrial demand cycles
Understanding these risks allows you to plan appropriately and ensures that your investment fits within your broader financial strategy.
How Silver Coins Compare to Other Forms of Silver
When investing in silver, you have choices between coins, bars, and even digital silver products. Each has its own pros and cons.
Silver coins offer:
Legal tender status (CGT exemptions on certain coins)
Smaller units for flexibility
Strong brand recognition and ease of resale
Silver bars offer:
Lower premiums per gram
Efficient way to accumulate larger quantities
Often require professional storage for larger holdings
For many private investors, silver coins strike the right balance between accessibility, tax efficiency, and liquidity.
Should I Buy Silver Coins Now?
Many factors suggest that 2025 could be a strong year for silver investment. With inflation pressures lingering, industrial demand growing, and financial markets remaining uncertain, silver offers both a safe haven and a growth opportunity.
As with any investment, timing is important, but building a position gradually can help you reduce risk and benefit from price movements over the medium to long term.
If you are asking yourself whether now is a good time to buy silver coin, consider your personal financial goals. Adding silver coins to your investment portfolio can provide both protection and growth potential in today’s complex economic environment.
Strengthen Your Investment Strategy with Silver Coins
Buying silver coins can be a valuable addition to your portfolio, offering tangible security, global liquidity, and long-term growth potential. Whether you are starting small or looking to expand an existing precious metals investment, silver coins provide a flexible and accessible route.
If you are considering the next step, Baird & Co. offers a wide range of silver coins from trusted mints around the world. Our experienced team is ready to help you make informed choices and invest with confidence.
