Silver is the easiest way into precious metals: a single coin costs around a hundred dollars, there's no licence or broker involved, and you can hold what you buy in your hand. It also behaves differently from gold in ways that catch first-time buyers out. Here's the whole process, including what you'll actually pay above the silver price, coins versus bars, and the practical side most guides skip: silver is heavy, and it needs somewhere to live.
1. Understand what you're paying: spot price + premium
Silver has a live global market price, the spot price, quoted per troy ounce (31.1 grams). You can see it in Australian dollars on our live prices page, updated every five minutes.
Every coin and bar sells for spot plus a premium, which covers minting, distribution and the dealer. With silver, the premium matters more than it does with gold. Minting and handling cost much the same whatever the metal, but the silver inside a coin is worth far less, so the premium is a much bigger share of what you pay: often more than 10% of the price of a 1oz silver coin, against around 5% for a 1oz gold bar. Two rules follow:
- Bigger bars, smaller premium per ounce. A 1kg cast bar holds just over 32 ounces of silver and carries far less premium per ounce than single 1oz coins, which carry the most.
- Compare the final price, not the spot price. Look at the dollar price of the same coin or bar, same year, same size, at the same moment. That's the number you pay.
2. Coins or bars?
Coins like the Perth Mint Kangaroo, the Canadian Maple Leaf, the South African Krugerrand and the British Britannia are struck by government mints, recognised by dealers everywhere, and easy to sell one at a time. They cost more per ounce than bars, but you're paying for flexibility: you can sell two coins without having to sell a kilogram.
Cast bars, such as ABC Bullion's 1kg bar, refined and assayed in Sydney, give you the most silver for your money. The trade off is that you sell the whole bar at once.
A common approach is a mix: bars for the bulk of what you hold, and some coins for flexibility. Have a look at what's in stock today in our silver range.
3. Know the tax position: investment silver carries no GST
Investment grade silver carries no GST in Australia when two conditions are both met. The silver must be at least 99.9% pure (bullion is typically 99.9% or 99.99%), and it must be in investment form: a bar, coin or wafer that trades on the bullion market and carries a refiner's mark guaranteeing its fineness. Silver jewellery and silverware don't qualify, regardless of if they're pure.
Capital gains tax can apply when you sell at a profit, though individuals who have held an asset for more than 12 months generally receive a 50% discount. Your accountant is the right person for this, not us, and not a website.
4. Plan for the weight
This is the part people underestimate. Silver is worth far less per gram than gold, so the same amount of money buys a lot more metal. A 1kg silver bar costs roughly what half an ounce (15.5 grams) of gold does.
- Storage. A few thousand dollars of silver fits in a shoebox; tens of thousands needs a proper safe or a safe deposit box. Plan where it goes before you buy.
- Keep it in its packaging. Coins come in capsules or tubes for a reason. Silver tarnishes and marks easily, so handle it by the edges, never clean it, and keep it dry.
5. Buy from a dealer, and expect to show ID
Bullion dealers in Australia are regulated under the Anti Money Laundering and Counter Terrorism Financing Act and registered with AUSTRAC, the same regulator that oversees banks. That's why every legitimate dealer, us included, verifies your identity before your first purchase. It takes a few minutes with a driver licence or passport.
Treat the ID check as a green flag. A seller who doesn't ask is either too small to be regulated or not planning to be around long.
6. The mistakes that actually cost money
- Buying "collectable" silver as an investment. Proof coins, coloured coins and limited editions carry premiums far above the silver inside them, and that extra rarely comes back when you sell. If your goal is owning silver, buy bullion.
- Paying for lots of small pieces. Ten single coins cost noticeably more than the same silver in one bar. Buy the largest size you're comfortable selling in one go.
- Marketplace "bargains". Silver below the market price on auction sites is how fakes find buyers. A regulated dealer sells sealed product with a receipt that matters when you sell.
- Forgetting the sell side. One day you'll sell this metal. A dealer who both buys and sells has a reason to keep you happy twice. We buy back what we sell, and you can see how selling to us works.
7. What a first silver purchase actually looks like
A sensible first buy for most people is a few 1oz coins to get a feel for it, or, if you're ready to commit more, a 1kg cast bar, which gives you the lowest cost per ounce.
The process with us, online or in store: verify your identity once, lock your price the moment you confirm the order (we hold it for 48 hours while your bank transfer arrives), then collect free in store or choose insured delivery to a street address anywhere in Australia. The price you lock is the price you pay, whatever the market does next.
Buying gold as well? Our guide to buying gold in Australia covers the differences. Other questions are probably on our FAQ, or ask a person: call us on +61 491 930 950, or visit us in Harris Park, Parramatta, or Riverstone, open Tuesday to Sunday, late into the evening.
*AVS Bullion is the bullion arm of Akshara Jewellers Pty Ltd (ABN 55 621 099 545), an AUSTRAC-registered bullion dealer at 59A Marion Street, Harris Park NSW. This guide is general information, not financial advice. Silver prices go down as well as up, often more sharply than gold, and a licensed financial adviser can tell you whether bullion belongs in your portfolio.*