Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Silver Bug

Like Tree5Likes
  • 1 Post By LongjohnSilver
  • 3 Post By bushi
  • 1 Post By LongjohnSilver

Reply
 
LinkBack Thread Tools
Old 02-13-2013, 05:29 AM   #1
n00b
 
Join Date: Feb 2013
Posts: 4
Liked: 2 times
Why is Silver such a rip-off in Europe?

A friend was speaking with "The Silver Guy" about the rip off charges Europeans must pay to buy Silver Bullion: He had this to say when it came to buying Physical Silver bullion in some countries in Europe. He had called a bullion dealer/broker the previous week and this is the quote he was given:
Quote :
...
Daily traded price or Spot + 22% premium on Physical Silver Eagles but it didn't end there, they would then add 23% VAT ( Value added Tax ) on top of that and insured delivery of your metal would cost you an extra €1 per 1oz coin on top of that, so €500 ( $668 / £422 ) on a monster box just for delivery. Vat rates & Premiums differ from country to country in Europe so you better do your homework before you buy. Gold's premiums are nowhere near as high and there is no vat on Gold in European countries, charges averaging around 5/6% over spot. But why are they trying to keep phyzz Silver out of peoples reach....
I'm not sure if I can cut and paste the whole interview due to copyright, so here's the link:
http://www.buysilverbullionuk.com/in...=en&view=topic
ancona likes this.
LongjohnSilver is offline   Reply With Quote
Old 02-13-2013, 06:24 AM   #2
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,055
Liked: 2451 times
Hi LongjohnSilver, welcome to the forum.

AFAIK, the VAT rates differ from one EU country to the next (at least for now):

http://www.pmbug.com/forum/f3/eu-vat...nvestors-1646/
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 02-13-2013, 06:39 AM   #3
n00b
 
Join Date: Feb 2013
Posts: 4
Liked: 2 times
Thanks for that PMBug!!

LongjohnSilver is offline   Reply With Quote
Old 02-13-2013, 07:58 AM   #4
Yellow Jacket
 
ancona's Avatar
 
Join Date: Nov 2011
Location: Waaay south
Posts: 3,370
Liked: 2046 times
I have seen similar commentary and discussion elsewhere as well. It seems that the VAT,, coupled with other surcharges and insurance can nearly double purchase price from spot. It is easy to come to the conclusion that it is punitive, but I think it is simply european nations taxing things they feel are "unnecessary" to fund their little socialist utopias. JMHO
__________________
All things being equal, the simplest answer is quite often the correct answer - Occam
ancona is offline   Reply With Quote
Old 02-13-2013, 08:34 AM   #5
n00b
 
Join Date: Feb 2013
Posts: 4
Liked: 2 times
I agree Ancona!! and the Euro sheep still sleep!
LongjohnSilver is offline   Reply With Quote
Old 02-13-2013, 09:10 AM   #6
Ground Beetle
 
bushi's Avatar
 
Join Date: Nov 2011
Posts: 971
Liked: 554 times
Originally Posted by LongjohnSilver View Post:
I agree Ancona!! and the Euro sheep still sleep!
...pretty much the same way, as your average US sheep , some are awaken, some will sleepwalk into financial slaughterhouse.

I don't think it is targeted, I mean, VAT is the same on MOST products (and indeed, varies from country to country - ze Germans, AFAIK, have 7% VAT rate on food - therefore, sucking in bulk-purchase retail customers from the surrounding countries, who do come in once a month or so, to bulk-buy anything they can store over the next month), so it is a general rip-off, not some targeted PM manipulation.

However, it is interesting/telling, that the gold, is VAT -exempt in EU. I wonder, why it is - maybe it has something to do with a "tradition", and making the "tradition", easy to follow, for banks, Central Banks, without making it too obvious to anybody, who would scrutinize VAT-receipts filings by the banks, what is actually going on in the gold market between CBs, banks, etc? I mean, gold would stick out as a sore thumb, from all other financial transactions (which are VAT exempt, surprise surprise )

Personally, I think being forced to pay VAT, on everything, that you buy - on top of income tax, that you were robbed already, is a clear case of double taxation, it is outrageous, makes me sick (like so many things related to government/economic policy), but hey, what can I do? Start cheating on taxes? Give up work in protest, and become one of the state-sponsored parasites? Move to... I don't know, a Moon colony?

However, if it was VAT only (with ABANDONED income tax), I think, it could be quite interesting and fair way to tax people, in it's own regard - because, it would effectively tax the CONSUMPTION - the more you consume (philosophically: the more you are getting out of the society), the more tax you pay. The more prudent, self-sufficient, savvy life you choose, the more tax savings you are getting.

That alone would provide HUGE, direct financial incentives, for conservative life styles. AND, it would be quite fair distribution - obviously, millionaires, consume more (per head), than middle class - they enjoy more things, that society has to offer - and the more they getting out of it, the more taxes they pay, automatically. It would also eliminate most of the loopholes (bar direct tax frauds - relatively easy to keep in check)

Therefore, because it is relatively simple, fair, and would benefit prudent, over reckless & corrupted, it ain't going to happen. Unless AFTER the impending big reset.
__________________
“...the issue which has swept down the centuries and will have to be fought sooner or later is the People versus the Banks.
Lord Acton
bushi is offline   Reply With Quote
Old 02-14-2013, 07:29 AM   #7
n00b
 
Join Date: Feb 2013
Posts: 4
Liked: 2 times
Thanks for that Bushi, regarding the tax issue I agree. But I think the taxes may be more targeted towards Silver not Gold for the following reasons:

"They" know Silver in the ground is approx x15 more plentiful than Gold, but as industry uses 50% of mine supply, that leaves 7.5 times more in the ground for investment, jewelry, table wear etc. But Silver is over x50 times cheaper to buy ( 50/1 ) and the historical price ratio is ( 16/1 ). Most of the Silver above ground has been used up by industry, where most of the Gold ever mined is still available.

Very few countries hold Silver bullion as a Monterey asset and if you believe "they" manipulate the metal price by trading Paper Silver in higher volumes than actually exist above ground to keep the price low, because if the price started to take off everyone would pile in and there is so little of it in large quantities left for industry and investors, people may start to wake up and do their own research into Silver's true value.

The U.S. Geological Society said a couple years ago that silver would be the first element in the periodic table that would become extinct. So after 2020, no more Silver for anything, investment or industry and we cant really live as we do today without Silver, no more flat screen TV's, Cell Phones, Solar Panels.....the list goes on and on. If you follow Sprott or Goldmoney founder James Turk, they say their allocated funds are selling equal $ amounts of both metals 1/1 so some people are starting to wake up and I don't think they can hold the price down for too much longer, hence wanting to get the best deal on the metal I can.
LongjohnSilver is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Europe weighs on the market benjamen PM Bug 0 05-23-2012 10:03 AM
Last 1000 years of Europe, fast forward bushi STS 2 05-16-2012 06:27 AM
Are we headed for another Lehman moment in Europe? PMBug Fiat Ponzi 11 11-04-2011 03:06 PM
Silver Bear Market Seen Ending on Europe Crisis: Commodities PMBug Silver Bug 2 11-01-2011 08:31 PM
If Europe Should Fail PMBug Fiat Ponzi 9 10-26-2011 06:14 PM


All times are GMT -5. The time now is 11:46 PM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2019 Measuring Up. All Rights Reserved.