Silver and silver coins: market pressure, regulation and the broader perspective

 

Anyone following the silver market in recent weeks will have noticed that the availability of silver coins has become more limited.

 

Is this due to an immediate physical shortage of silver? Not entirely.

 

More than 95% of dealers do not maintain a structural in-house stock. At Edelmetaal Richard, the situation is different. Thanks to a long-standing partnership with Umicore and an internal stock management system, there is no actual shortage. Orders continue to be delivered.

 

That said, the global silver market has undeniably become tighter.

 

Belgian legislation

Belgium was required to transpose a European directive into national law, resulting in changes to the VAT rules for silver coins.

A key point is that the new legislation entered into force without any transitional period.

As of 31 December 2025, new silver coins are immediately subject to a higher VAT rate.

 

• Every professional seller of new silver coins in Belgium
• must charge VAT upon sale
• without exceptions

 

Any purchase of new silver coins from a Belgian dealer therefore includes VAT.

The regulation is complex, but its core principle is clear.

 

Global silver market

Beyond the Belgian context, global silver inventories are under pressure.

 

For many years, silver was primarily viewed as an industrial metal. Its historical monetary role appeared largely diminished.

Nevertheless, it is notable that in many languages the word for silver is synonymous with money.

Over the past two centuries, gold has clearly prevailed. It remains the ultimate financial reserve.

Except for a relatively short period between 1995 and 2003, this role has never been fundamentally challenged.

 

Physical gold therefore forms the foundation of a well-structured portfolio.

 

The role of silver

In the silver market, developments are emerging that would have seemed unlikely only a few years ago.

 

• Large investors are acquiring significant portions of annual silver production in physical form
• A global shift toward tangible assets is evident
• Ownership of real assets is increasingly prioritised

 

Silver currently benefits from two forces simultaneously: safe-haven demand and strong industrial demand, particularly from electronics and solar energy.

This combination explains the sharp price increases seen in recent months.

 

Market pressure and volatility

Current market dynamics are intense.

 

• Silver futures are trading close to recent highs
• Some markets recorded gains of over 30% in January
• In India, local premiums have surged amid speculation about potential import duties

 

Such fragmentation occurs when physical demand and policy expectations reinforce each other.

Increased volatility is inevitable, and short-term corrections remain possible.

 

The broader perspective

Precious metals should be viewed as long-term positions rather than short-term trades.

 

Silver and platinum are showing strong momentum, but physical gold remains central.

 

Finally, Edelmetaal Richard does not belong to the group of dealers facing structural shortages. Daily deliveries continue as usual, supported by 70 years of experience.