Silver in Swiss francs, a metal taxed in the country that refines it

The four major Swiss refiners—Valcambi, PAMP, Argor-Heraeus, and Metalor—process silver the same way they process gold, and their bars end up in vaults throughout Europe. Three of them are located in the canton of Ticino, a few kilometers from the Italian border. This industrial concentration has made the one-kilogram ingot in a sealed blister pack a de facto standard for silver savings on the continent.

The Swiss paradox lies in taxation, and it is crucial for understanding the local market. Investment gold is exempt from value-added tax in Switzerland. Silver, however, is not: it is subject to the tax at the standard rate as soon as it enters the country. Therefore, the same refiner produces, in the same building, both tax-exempt and taxable metal.

The consequence is evident in established practices. Some of the investment money purchased by Swiss residents remains stored in customs warehouses, where the tax does not apply until the metal enters the country. This is a legal and common practice, but it alters the nature of the holding: the metal exists, it is simply not at home.

The Swiss franc has been appreciating against the euro for decades. For someone holding money in Switzerland, this force acts as a constant subtraction: when the price of gold rises in dollars, the conversion to francs eats away at a portion of the gain, because the franc has also risen.

The result is observed over the long term. Measured in francs, silver's performance is more modest than the same performance measured in euros. The metal itself hasn't changed; it's the measuring instrument that differs. The table below illustrates the mechanism for the three currencies published by the LBMA; it applies to the franc without any fundamental changes.

The Swiss franc is not included in the columns published by the LBMA, but the argument remains unchanged: what is observed here between the euro and the dollar occurs identically between the euro and the franc, albeit with a different magnitude. Over the long term, the franc's appreciation mechanically offsets a portion of the metal's rise reflected in that currency.

The Swiss franc is not one of the three currencies in which the LBMA publishes its fixings. The column in francs in the table below is therefore a conversion, performed using the fixing in euros and the exchange rate of the day. We prefer to state this clearly rather than give the impression of an original quote.

The silver session is unique and takes place at noon, London time. It serves as the contractual basis for deliveries settled all over the world, including bars that will leave a warehouse in Ticino.

The bars from the four major Swiss silver refiners are among the silver products we take back most regularly. We accept them sealed or unsealed, and we value them based on the French market.

The key point of concern is well known to professionals: the most frequently counterfeited blister packs are those of intermediate sizes, which circulate widely and are rarely checked. Examining the seal, the serial number, and the bar's geometry eliminates any doubt at the branch, without altering the product.

Our agencies are located in France and Belgium, and payments are made in euros. The column in francs on this page is simply for comparison with a price obtained on the other side of the border, keeping in mind that taxation is not the same in both countries.

The list of metals and forms that we include specifies what we appraise in silver as well as gold, and the process of a buyout, from the valuation to the written proposal It outlines the steps, which are identical for all precious metals. Payment is made by bank transfer, after acceptance of a detailed proposal, which you are under no obligation to sign.