Duty-free storage options for precious-metal traders
Precious metal traders well understand the extent to which storage concerns influence the purchase decisions investors make: While corporate clients may look for custom solutions from a professional provider, smaller investors generally seek convenience and reassurance in equal measure. Nevertheless, as our Swiss Gold Safe clients will readily confirm, all expect (and much appreciate) gold-standard security, customer-facing benefits, and high-calibre service.
Meanwhile, some dealers routinely take further advantage of our facilities and expertise, finding our precious metal storage support and specialist advice an invaluable business asset – which invariably enhances end-customer confidence too. Read on to learn more about our range of services, find out how we bring end customers peace of mind, and discover why an attractive duty-free storage option can also offer any dealer a significant market advantage.
Safe storage is non-negotiable
We believe our safe deposit boxes and custom storage solutions housed in state-of-the-art Swiss Gold Safe vaults in Alpine locations and in the Principality of Liechtenstein demonstrate our uncompromising commitment to secure safekeeping. And while meeting this core expectation, we also include other important storage essentials such as: comprehensive insurance cover, 100% full-title ownership, individual safekeeping and a 24/7 emergency power supply.
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Swiss VAT-free storage: A broker-friendly solution
While trading investment gold remains VAT-free, transactions involving silver and other white metals such as platinum and palladium are normally subject to VAT. The particular exception, of course, is the untaxed interim storage of white metals delivered direct to a Swiss duty-free warehouse. The immediate advantage for small investors is that, provided all transactions follow the rules, they can acquire a larger amount of VAT-free white metals, thus deriving greater benefit from their available investment capital. However, not all bullion brokers are aware they too can deploy this regulatory concession to secure a trading advantage.
White precious metals meet Switzerland’s criteria for duty-free storage. So tax only becomes payable when these metals are retrieved from a duty-free warehouse, or alternatively, when such goods are directly imported. For practical purposes, this interim storage arrangement can thus continue indefinitely. Furthermore, the VAT exclusion within a duty-free warehouse continues to apply even when changes of ownership and/or internal relocations of goods inevitably occur.
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Swiss Gold Safe maintains several duty-free warehouses in Switzerland, so this VAT exemption allows precious metal traders an opportunity to store their own silver goods, for example, completely tax-free in a customised segregated storage environment. Their investment customers can then purchase that silver VAT-free, either leaving the trader to continue handling internal storage arrangements, or referring customers on to Swiss Gold Safe Ltd who would then take over future storage responsibilities. Whichever option the end customer prefers, traders can anticipate increased trading volumes – bearing in mind that end customers who buy silver in a duty-free warehouse can then invest the capital they don’t spend on VAT in purchasing more silver. So a retailer who offers delivery direct to a duty-free warehouse can thus expect a sales boost of up to 20% (dependent upon the prevailing VAT rate). In addition, retailers will gain operational advantages normally only open to major providers with their own bonded warehouse facilities.
Duty-free warehouse advantages for all
For investors, maintaining precious-metal holdings in a duty-free environment is convenient as well as rewarding: Privately-run, bank-independent storage demands no citizenship or residential status, incurs zero transport costs, guarantees absolute discretion, requires no Swiss bank account, and can be easily managed via a flexible range of payment options. Moreover, aligned with Switzerland’s global reputation for political and economic stability, such features represent an attractive solution for both domestic and international clients – especially those looking to establish a broader investment portfolio as part of a wealth strategy based on the principle of smart asset diversification.
Because of Swiss VAT exemption rules, precious metal dealers around the world are similarly unconfined by geographical limits. Thus, in collaboration with Swiss Gold Safe, white-metal bullion dealers can conveniently maintain inventories in Switzerland and thereby purchase and sell silver and other white metals in advantageous market conditions with ancillary services and expert advice close at hand.
Swiss Gold Safe Ltd has worked in close association with various dealers in Europe, the USA, Canada and beyond, for many years and would welcome the opportunity to discuss custom solutions with interested precious metal traders keen to learn more.
Summary of duty-free storage options
- Traders appreciate safe storage is important to customers, which is why Switzerland’s duty-free warehouses are a popular choice.
- Ex-VAT storage of silver, platinum and palladium via a specialist storage provider like Swiss Gold Safe offers fully-insured high-grade security at reasonable rates.
- Such arrangements can also be advantageous for dealers who can also access duty-free concessions to significantly expand their trading opportunities.
- Dealers and investors across Europe, the USA and beyond can benefit from open access to Switzerland’s duty-free warehouses – as part of a strategy to diversify assets or distribute trading stocks to new markets, for example.
- Swiss Gold Safe Ltd has been working collaboratively with selected dealers for many years and would be happy to offer advice and support with custom storage.
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