Gold vs Silver in the UK: Which Is the Better Investment in 2025?

Introduction: Gold vs Silver for UK Investors

With inflation concerns, geopolitical instability, and volatile markets dominating the headlines, more UK investors are turning to physical assets like gold and silver to hedge their portfolios. But when it comes down to choosing between the two, a common question arises: Is gold or silver ( gold vs silver ) the better investment in 2025?

In this guide, we’ll break down:

• The price performance of gold and silver

• Key differences in taxation, storage, and liquidity

• The pros and cons of each

• Real-world UK market insights

• Which metal might suit different investment goals

Whether you’re new to precious metals or looking to rebalance your bullion holdings, this detailed comparison will help you make a more informed choice.

Understanding the Basics: Gold and Silver as Assets ( gold vs silver )

What Drives Gold Prices?

Gold is seen globally as a store of value, particularly during economic downturns. Its price is driven by:

• Inflation and interest rate expectations

• Central bank demand

• Currency fluctuations, particularly the strength of the US dollar

• Geopolitical tensions

What Influences Silver Prices?

Silver is both a monetary and industrial metal. It shares many of gold’s investment properties but also:

• Has significant industrial demand (solar panels, electronics)

• Is more volatile due to thinner trading volumes

• Reacts more quickly to changes in industrial output and tech trends

Price Trends in the UK: Gold vs Silver (2020-2025)

Over the last five years, both metals have shown substantial gains, though with differing risk profiles.

Year	Gold Price (GBP/oz)	Silver Price (GBP/oz)
2020	£1,270	£14.20
2021	£1,325	£16.80
2022	£1,440	£18.40
2023	£1,620	£20.10
2024	£1,820	£21.75

Note: Data based on historical LBMA spot prices. Gold has shown steady appreciation, while silver has been more erratic but with strong upside potential.

Taxation in the UK: Gold Has the Upper Hand

VAT Considerations

• Gold: Investment-grade gold is VAT-exempt in the UK (0% VAT).

• Silver: Subject to 20% VAT unless stored in bonded warehouses.

Capital Gains Tax (CGT)

• Gold Coins like Britannias and Sovereigns are CGT-free because they are legal tender in the UK.

• Silver Coins also qualify if they are UK legal tender (e.g., Silver Britannia), but silver bars are not CGT-exempt.

Conclusion: For tax-conscious UK investors, gold offers better advantages, especially when purchasing in the form of legal tender coins.

Storage and Liquidity: Gold Wins on Convenience

Storage

• Gold is more compact and high-value. A 1kg gold bar is worth over £60,000 and fits in the palm of your hand.

• Silver takes up far more space for the same value (£60,000 in silver weighs over 90kg).

Liquidity

• Both metals are liquid, but gold is more widely accepted globally and easier to sell quickly in high volumes.

Verdict: Gold is easier and cheaper to store, especially for those holding larger values.

Volatility and Growth Potential: Silver’s Strength

Silver: The “High-Risk, High-Reward” Metal

• Prone to big price swings

• More affordable for beginner investors

• Industrial demand is rising due to green tech (EVs, solar)

Gold: The “Safe Haven”

• More stable pricing

• Less exposed to economic cycles

Verdict: If you’re looking for growth and can tolerate volatility, silver may offer better percentage returns. For long-term capital preservation, gold remains the winner.

Real Investor Profiles: Who Should Buy What?

Gold is Best For:

• Long–term wealth protection

• Retirement portfolios

• High-net-worth individuals

• Conservative investors

Silver is Best For:

• Younger investors with smaller budgets

• Those looking to speculate on industrial demand

• Tactical traders who time market dips

Price Entry: Silver’s Affordability

• A 1oz gold coin costs £1,800+

• A 1oz silver coin costs around £25–£30 (including VAT)

Conclusion: Silver is far more accessible for those starting out or dollar-cost averaging monthly.

Environmental and Industrial Relevance in 2025

Silver:

• Key material in photovoltaic solar panels

• Used in 5G infrastructure, medical instruments, and batteries

Gold:

• Still critical for electronics, but more limited in industrial use

• More focus on monetary and investment roles

This makes silver potentially more demand-driven in a technology-focused world.

How UK Investors Are Buying in 2025

• Online dealers: Sites like UK Bullion by Post dominate

• Coins preferred over bars for tax reasons

• Monthly buying plans help average cost over time

Insider Tip: Always check for premiums, VAT status, and whether the dealer offers CGT-exempt coins.

Final Verdict: Gold vs Silver in the UK

Criteria	Gold	Silver
Tax Efficiency	✅ VAT-free, CGT-exempt	❌ VAT applies, some CGT-free coins
Price Stability	✅ High	❌ More volatile
Affordability	❌ Expensive	✅ Accessible
Storage	✅ Compact	❌ Bulky
Growth Potential	✅ Steady	✅ High upside
Industrial Demand	❌ Limited	✅ Expanding fast

Our Recommendation:

• Choose Gold for long-term, stable, tax-efficient wealth storage.

• Choose Silver for growth potential and lower price entry.

• Diversify with both to hedge against inflation and market volatility.

Next Steps: Where to Buy Gold and Silver in the UK

Looking for a reputable UK bullion dealer? UKBullionByPost.co.uk offers:

• Investment-grade bars and coins

• CGT-exempt UK legal tender options

• Secure storage solutions

• Fast, insured UK-wide delivery

FAQ: Gold vs Silver Investment in the UK

Q: Is it better to buy silver coins or bars in the UK? A: Coins are CGT-exempt if UK legal tender (e.g., Silver Britannia). Bars are more compact but not tax-free.

Q: Can I store my gold or silver at home? A: Yes, but use a secure, fireproof safe and consider insuring your holdings.

Q: Will silver outperform gold in 2025? A: Possibly, especially if industrial demand continues to grow, but it’s more volatile.

Q: What if I can only afford one? A: Silver is more accessible, but if you can afford gold, it’s more tax-efficient and stable long-term.

Final Thought: Whether you lean toward gold, silver, or a mix of both, investing in physical metals in 2025 offers a tangible way to protect and diversify your wealth. With the UK economy facing ongoing uncertainties, there’s never been a better time to start your bullion journey.