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I found this podcast interesting

Silver Wheaton Corp.
Gold Forum 2006
September 25 - 26, 2006

[url="http://events.onlinebroadcasting.com/denvergold/092506/frameset.php?file=wheaton&co=wheaton&player=win"]http://events.onlinebroadcasting.com/denve...&player=win[/url]

Frizzers - can you explain the differences in the following for me

To
SLW - Silver Wheaton Corp.
SLW.WT - Silver Wheaton Wt
SLW.WT.A - Silver Wheaton Wt A
SLW.WT.B - Silver Wheaton Wt B

Best NYSE or TO?
Ta

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I have virtually zero experience trading on NYSE, so I would go for Canada. Also I'm quite bullish on the Canadian dollar.

Did you know just 15 people work for SLW? That's how streamlined it is.

SLW is the stock. I believe the others are warrants, BUT I'M NOT SURE.

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[url="http://www.preciousmetalresources.com/canadian/silver/marketcaps/"]http://www.preciousmetalresources.com/cana...ver/marketcaps/[/url]

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Nice move in those Silver stocks

David Morgan seemed happy with the reaction to the first Silver Summit in London

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Help on silver and tax please!

I have read that "silver bullion" is liable for VAT in the UK, but "second hand / circulated" "coins" are not. Does anyone know any more detail about what constitutes "second-hand" and "coins". What about silver rounds?

Does it make a difference if I buy from a private individual versus a wholesaler? What about if I buy from the USA (eBay)?

Essentially, I'm trying to work out the cheapest way to buy small quantities of bullion bars / coins / rounds. US eBay is much cheaper, even with more expensive postage, but will I be stiffed with a huge VAT / import duty charge on everything / only certain types / or none?

Sorry for the rambling questions! Any info appreciated - particularly if anyone else has bought from the US.

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Buy with Goldmoney, don't take delivery - no VAT.
Hold an unallocated silver account with Baird's, no VAT .

Buy from the States, don't declare and get away with it - no VAT, but illegal. (Mr Nice posted a link, possibly on this thread, to a an excellent US silver dealer).
Buy SLV, no VAT
Buy LSE: SLVR - don't know.

Coins don't know, but we don't have junk silver bags like they do in the States.

VAT = C*NT

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[quote name='Yogi' post='11283' date='Nov 15 2006, 08:23 PM']Help on silver and tax please!

I have read that "silver bullion" is liable for VAT in the UK, but "second hand / circulated" "coins" are not. Does anyone know any more detail about what constitutes "second-hand" and "coins". What about silver rounds?

Does it make a difference if I buy from a private individual versus a wholesaler? What about if I buy from the USA (eBay)?

Essentially, I'm trying to work out the cheapest way to buy small quantities of bullion bars / coins / rounds. US eBay is much cheaper, even with more expensive postage, but will I be stiffed with a huge VAT / import duty charge on everything / only certain types / or none?

Sorry for the rambling questions! Any info appreciated - particularly if anyone else has bought from the US.[/quote]

You could try looking over Chards website, they used to have a section on investment silver.

www.24carat.co.uk (I have found them very slow to respond to emails in the past).

You might also try a google search for pre-decimal British coins. Some of these were 50% silver, its possible to find coin dealers offloading piles of worm examples as bullion. (I think Cards used to sell 10KG bags of these).

(You need to be carefull on ebay - theres a lot of silver plated lead about)

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BTW: I prefer to take possession of silver rather than have some entity's promise to deliver it.


[b]Caution this is from memory:[/b]

VAT is payable on "new" bullion type coins.

Silver content of second hand coins varies: older "real" sterling had 90% silver, changing down to I think 70ish%.

These, older, coins are exempt from VAT...........BUT you will pay VAT on the merchant's margin. This of course will be negligible, especially if you buy in large quantities / larger oz coins. (I.e.: 100 or so 1oz coins).

Maples are generally the cheapest coins available.

Second hand silver (coins/bars) is "rare" - insomuch as demand outstrips supply - speak to a dealer about this!!!!


BTW: I think if you make the right moves then costs take care of themselves.

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Thanks for the replies.

In terms of the unallocated accounts, I'd consider these as and when I have more to spend (ie. STR fund) but for the moment I just fancy buying a steady 10 - 100 oz of physical every month. To a) average out the volatility and b ) enjoy the feelgood factor of shiny lumps of metal in my hands :D

Regarding tax, things are getting clearer, but just to confirm...

- Anything new (coins, bars, whatever) = VAT due, period.
- "Second-hand" bought in UK = VAT due only on any dealer margin
- Bullion bars (new or old) bought in from abroad = VAT due

This is where I'm still not sure ...

- "Second-hand coins" from abroad eg. Maples, junk (90%) old US coins etc ... :) ???

This latter category seems to be the best value (100+ "Any Year" Maples from thesilverxchange.com seem well priced, though shipping is rather steep). So, I would like to know whether I should (at least in theory!) be paying VAT on these, or whether I can back up the truck without worrying.

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Yogi, I have found Chard Limited very helpful with my inquiries, why don’t you give them a call:


Website: "Tax Free Gold"

Address: 521 Lytham Road, Blackpool, Lancashire, FY4 1RJ, England.

Telephone: (44) - (0) 1253 - 343081 & 316238

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Guest David Morgan
Good write up.. Silver does have wider swings and many look at gold as the crisis hedge. Gold certainly is a safehaven however duirng the 911 incident silver went up over 11 per cent in one day, and gold went up around 7 percent.

The point being not only does silver move in a wider range but it also reacts as a safehaven.

I would like to encourage readers to take a look here

[url="http://www.silver-investor.com/joinfreelist.html"]http://www.silver-investor.com/joinfreelist.html[/url]

This will provide you with the Ten Rules of Silver Investing I wrote several years ago for "Investing Rules" a book published here in the United Kingdom. It is free and will help your investment decisions.

Also, Dominic and I did an interview on my recent trip to London and for that I would like to thank him here.

Our group of researchers are looking for Silver to be $18.00 USD on April 1, 2007--

Best to you,
David Morgan

www.silver-investor.com

:mellow:

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LIMEY CORNER - David Morgan's insider in the UK

Having enjoyed the first-ever London Silver Summit, I offer a British perspective on the silver market and a feel for the profile of silver investing in the UK. The land of CCTV cameras and deference to Brussels remains firmly obsessed with housing and “financial services”—hard assets are still very much considered to be “fringe” investments.

While there is marginally more interest than a year ago, sentiment remains weak—gold is still a shunned asset class, which means that silver too remains exiled to the boondocks. UK investors tend to look at gold and silver as one and the same—outdated “flight to safety” investments. Promoting silver as an industrial metal still engenders a degree of surprise among my fellow investment managers. I fear that so long as paper currencies sustain their fiat confidence trick, UK fund managers and investors alike will continue to consider silver a quaint investment at best—and at worst, the realm of Conspiracy Theorists and Cassandra’s alone.

I have had little success in tempting UK investors into the physical metal (something that I consider to be of utmost importance to both them and the marketplace). This may have something to do with the fact that the UK government charges VAT at 17.5% on physical silver while gold is VAT-free. This bizarre disconnect only further serves the purposes of the SUA by putting investors off from buying “the real thing.” Even the dealer I bought kilo bars from in 2001 pleaded with me not to be so silly as to “throw away” 17.5%; rather, he advised me to buy unallocated certificates! Such is the overwhelming assumption here that nothing has changed in the physical market, that most fund managers in London still refuse to believe that any investment could really be portfolio insurance AND have utterly compelling fundamentals—the ultimate straddle.

As such, I must say that the general understanding of “real money” and “fiat currencies” over here is pretty much non-existent. This is a surprise to me, as Englishmen pride themselves on their knowledge of history. This is perhaps the biggest difference between the U.S. and UK silver markets (perhaps because we don’t have a constitution that expressly forbids fiat currencies!). The idea of returning to a fixed metallic standard is an anathema to the UK investor.

When I was at the Silver Summit in Idaho in September, physical silver disappeared from the stall of the Northwest Mint at a remarkable speed. I consider this to be the important change we are seeing globally (if not the UK!) in silver. Those in the know are reaching for the shiny stuff while the cautious stand back and wait for price action to lead them back into the market. I do hope that us Brits “get” the silver story soon but am not holding my breath; the UK is the most mediated country in the world (in terms of watching television and reading national newspapers), and investors and voters alike are used to being told what to do and where to put their money...hence the current fascination with cheap credit and the bubbling housing market. ~ Ned

Editor Comment: I asked Ned to give us a picture of how precious metals investing is perceived in Great Britain. It is my considered view that the UK and most of Europe (Germany may be the exception) are at least two years behind Canada and the U.S. for any momentum in the natural resource sector. What this tells us is that this bull market is far from over, and as investors around the globe wake up to the fact that the precious metals are increasing in value against all currencies, we should witness more and more money moving into this sector. We have asked Ned to stay in touch with us and contribute periodically, as the increased market awareness is only a matter of time.

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Dec. 15 (Bloomberg) -- BHP Billiton Ltd., the world's biggest mining company, closed its Cannington silver mine after a fatality today.

The mine will be closed indefinitely as an investigation takes place, Emma Meade, a spokeswoman for the Melbourne-based company, said today. Cannington, which also produces lead and is based in Australia, is the [b]world's largest silver mine[/b].

(no link yet, but will try to find one)

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[quote name='sigmadelta' post='12423' date='Dec 14 2006, 11:35 PM']Dec. 15 (Bloomberg) -- BHP Billiton Ltd., the world's biggest mining company, closed its Cannington silver mine after a fatality today.

The mine will be closed indefinitely as an investigation takes place, Emma Meade, a spokeswoman for the Melbourne-based company, said today. Cannington, which also produces lead and is based in Australia, is the [b]world's largest silver mine[/b].

(no link yet, but will try to find one)[/quote]

Surely this is [b]not [/b]the reason why silver has dropped 10% in the last few days?
Anyone know why? <_<

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Went to silver exchange and they have the follwong message:
'Due to the high level of fraudulent activity, all international purchasing has been ended.
International customers who have bought from us in the past: Contact Us to order'

Doh. Any other VAT exempt routes to owning physical silver?
BullionVault doesn't appear to deal it. If I buy junk bags of coins,
how easy are they to resell?

ABB

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Try [url="http://www.goldmoney.com/"]http://www.goldmoney.com/[/url] . Best way to own physical IMO. Only pay VAT if you take delivery. So don't.

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The only thing that bother me about goldmoney ishteir buy sell spread.
e.g.today, they sell at $14.529, but buy at spot $13.89,
a 5% difference.
similarly for gold, sell at 689.40, buy at 666.20, a 3% markup.

BullionVault is selling at about $1 over spot...their literature
states that the difference is for manufacture and delivery
(to their vaults), so why are gold money charging so much?

ABB

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[quote name='AgeingBabyBoomer' post='15199' date='Feb 9 2007, 09:45 PM']The only thing that bother me about goldmoney ishteir buy sell spread.
e.g.today, they sell at $14.529, but buy at spot $13.89,
a 5% difference.
similarly for gold, sell at 689.40, buy at 666.20, a 3% markup.

BullionVault is selling at about $1 over spot...their literature
states that the difference is for manufacture and delivery
(to their vaults), so why are gold money charging so much?

ABB[/quote]

After reading the BullionVault literature som emore, they apear to use standard
400oz bars, and one buys a slice threof.
So you basically get spot price with a very narrow spread.
Kitco (for instance) will deliver individual 1oz ingots, so I expect
manufacture and delivery costs are higher, though that doesn't explain
the spread on pool or unallocated metals.

ABB

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kimber has gone weak

i wonder of jim p. is bailing out

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No they had some poor drill results - [url="http://www.kimberresources.com/newsletter.html?id=185"]http://www.kimberresources.com/newsletter.html?id=185[/url]

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Excerpt:

"As mentioned in the last newsletter (for November), results from Carotare at that time had not been encouraging. Since then we have completed Carotare West, a visually impressive structure with alteration, gold, and silver but our intersections have not demonstrated enough gold and silver to be economic. The same can be said for the south structure at Carotare East. After the excellent start when the first 28 holes in 2005 generated a resource of 240,000 gold-equivalent ounces this has been disappointing. Similarly, although we have intersected mineralized structures, early drilling at El Orito Norte has not provided much excitement yet. Drilling on the main structure continues and we will evaluate progress with each batch of results."

Let's see if JP lightens up on this news

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What I note aqbout that is that they've made no attempt to disguise the poor news, not even to dress it up in lighter language. They then put that para right at the front of the monthly news letter so it has full impact. Do they want the share price to go down?

Or maybe the actual news is even worse.

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