The Case for Gold
Gold is the world's most recognised store of value. It is less volatile than silver, more liquid, and carries a lower storage cost relative to its value. For UK investors, CGT-exempt gold coins such as Sovereigns and Britannias offer a particularly compelling tax advantage — any gains made on disposal are entirely free from Capital Gains Tax.
Gold is best suited to investors who prioritise wealth preservation and want a stable, long-term hedge against inflation and currency risk.
The Case for Silver
Silver is significantly more affordable per ounce than gold, making it accessible to a wider range of investors. It also has substantial industrial demand — used in solar panels, electronics, and medical devices — which can drive price appreciation independently of monetary factors.
The trade-off is greater volatility: silver can move 2–3x more than gold in percentage terms during market swings. This cuts both ways — larger potential gains, but also larger potential drawdowns.
In the UK, silver coins such as the Silver Britannia are CGT exempt as legal tender, though VAT applies to silver bullion under the Special Scheme.
Key Differences at a Glance
| Gold | Silver | |
|---|---|---|
| Price per oz (approx.) | ~£2,800 | ~£25 |
| CGT exemption (UK coins) | Yes | Yes |
| VAT | No (investment gold) | Special Scheme applies |
| Volatility | Lower | Higher |
| Industrial demand | Limited | Significant |
| Storage cost | Low relative to value | Higher relative to value |
The Gold-to-Silver Ratio
The gold-to-silver ratio tells you how many ounces of silver it takes to buy one ounce of gold. Historically, this ratio has averaged around 60:1. When the ratio is high (above 80), silver is considered relatively cheap compared to gold — and many investors use this as a signal to increase silver exposure.
Which Should You Choose?
For most UK investors, a combination of both makes sense. Gold provides stability and tax efficiency; silver offers growth potential and affordability. A common approach is to hold the majority in gold and use silver to add upside exposure.
If you are just starting out, a single CGT-exempt gold coin — such as a Gold Sovereign — is an excellent first purchase. Once you have a gold foundation, adding silver coins like the Silver Britannia can diversify your holdings cost-effectively.
Browse our full range of Gold Coins, Gold Bars, and Silver Coins at 888 Bullion.