UK Silver Price Disconnect?

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#1 Wed, Aug 24, 2011 - 6:12pm
giant catfish
Kent, South East England
Joined: Jun 14, 2011

UK Silver Price Disconnect?

I live in the UK (mostly) and have been buying silver since I found Turd's blog last year. I firstly bought a couple of kilogram bullion bars, but then my love of coins was re-awoken, dormant for 30 years since I was a young boy.

Since then, I've been buying coins - I've tried to be sensible by keeping the vast majority of my coins in well-known, standard types (ASE, Maple, Aussie Koala, etc.) and always one-ounce coins. However I can't resist the most beautiful designs (e.g. Mexican Libertad) or special sets to collect (the Cat coins from the Isle of Man, for example) so I've paid over the odds for some of these. The majority are easily-traded bullion coins though.

I've only ever bought so far - not yet had to sell. The plan is to hold indefinitely - almost my pension fund (I'm a freelance consultant). However I'm not working at the moment, and if the worst comes to the worst, I may have to sell at some point.

In anticipation of this, knowing the huge loss on sale in the UK due to VAT, I've checked out how much common silver 1-oz coins are selling for in the UK on eBay. Yes, I know eBay is a minefield and I've never successfully sold anything there... but it may be needed in the future.

It seems as if simple plain Canadian Maples are selling for £37-£44 (a bit more if you include postage). Right now, £40 is $65 USD - yet spot silver (having just taken a kicking) is below $40.

I'm used to silver margins being large, but even accounting for UK 20% VAT, this is around $14 margin - huge.

Is this a disconnect between real physical prices and the 'paper' markets? Are people *really* paying £40 in the UK for a single silver Maple? If so, and assuming fraud can be avoided, selling on eBay seems to be the thing to do. Has anyone got any advice on the best way to *sell* silver coins in the UK, if one is forced into liquidation? Unlike the USA, we don't have 'local coin shops' in abundance here in England - I haven't been able to locate one near me...

Edited by: giant catfish on Nov 8, 2014 - 5:08am