I have recently read that there is a bank in Switzerland (KZB) that offers a silver ETF. By Swiss law, the bank must keep the silver on site and whatever silver you buy is held for you there. In other words, if you buy silver there are actually bars with your name on them at the bank. (I've heard horror stories about people buying gold/silver that only exists on paper. I've heard some funds even charge storage fees for gold that hasn't even been set aside.) Has anyone purchased PM in Europe? It is my understanding that silver in Europe is subject to a VAT tax. How would that work for a foreign investor? I'm not interested in physical possesion in this situation. (I have 1000 oz locked away already.) I just want to diversify my silver holdings. Anyone have any thoughts on this? Good idea, or no? I need to figure out the tax implications to decide if its even worthwhile. I was also told that if I sold any silver I currently possess at a profit I would have to declare that profit and pay a capital gains tax on it...is this correct? Thanks!
Sometimes you can be too clever. If you sell your silver, a tax will be due. If you decide to invest in silver in a foreign ETF that is not traded on a US exchange, there may be unanticipated problems with PFIC reporting, redemption, and other issues. If you want a silver ETF, SLV is probably your best bet. If you think there is some risk in trusting Barclays, the risk is probably 10X that amount with a second tier Swiss bank.
I would stick with the SLV, especially if you are interested in quick trades to make money. It's a lot easier than moving silver back and forth while riding the ups and downs.
To get a trustworthy answer to that, you need to find someone who is as expert in European tax law as people here are at coins. On the other question, yes, you do have to pay capital gains tax on any profits you make.
http://www.caseyresearch.com/editorial/3436?ppref=GLD178ED0610A The tax rules can get fairly complicated depending on exactly what you own. This is a pretty good summary of the things to be aware of.
I have hoarded 1000 oz as wealth protection. I would consider selling half of my physical holdings if silver hit $40 an ounce. I don't see that happening, though, so I'm looking at it as long term wealth protection. An ETF/SLV would be an attempt at turning a profit. I'm not one of those guys that thinks he can buy a bunch of physical silver/gold and then sell it back to the dealer at a profit a year later. Too risky and, frankly, I am not at all confident I could do it and not lose my shirt... Especially with silver...super volatile market. Thanks everyone. I think I'll go the SLV route. Tom
