Should I buy gold or silver bullion?

How the two metals differ

• Price per ounce: silver costs far less per ounce, so it allows smaller purchases.
• Space and weight: the same rand value in silver takes up much more room and weighs much more, which affects storage and box size.
• Price behaviour: both are priced in US dollars and move with the exchange rate. Silver's price has often moved more sharply than gold's, partly because industrial demand plays a larger role.
• Spreads: the gap between buying and selling prices can be proportionally wider for silver.

How tax can change the comparison

Gold Krugerrands are always zero-rated for VAT in South Africa, while silver bullion is generally standard-rated, which adds VAT to its cost. When you sell, a gain may be subject to capital gains tax or income tax, depending on your circumstances. Treatment depends on the product and the facts, and rates and thresholds change at each Budget, so check SARS guidance or ask a tax practitioner.

Questions to ask yourself first

• What role would metal play alongside your other savings?
• How much space and insurance cover would you need?
• How easily might you need to sell, and in what amounts?
• Could you accept a fall in price?

Comparing what is on offer

Knox's bullion range includes gold Krugerrands (1 oz, 1/2 oz, 1/4 oz and 1/10 oz), gold bars (10 g, 50 g and 100 g), 1 oz silver Krugerrands and 1 kg silver bars. Knox can show you current selling and buy-back prices for both metals so that you can compare costs on an equal footing. It cannot tell you which metal suits your finances; a qualified financial adviser can, taking your wider position into account.