The question we hear most from people thinking about investing in precious metals for the first time is always the same: gold or silver? The short answer is that you do not have to pick one, because each does a different job in a wealth portfolio. For the long answer you need to understand how each one works.
In this article
The short answer
Gold and silver are the two precious metals people buy in physical form, but they do not behave the same way or cost the same to buy. Investment gold carries no VAT; in Spain, silver pays 21%. Silver is far cheaper per ounce, takes up far more room and its price moves more, because over half of what the world buys goes to industry. Gold depends mainly on investors and central banks.
Neither is better in the abstract. It depends on how much you want to put in, over what period, and how much price movement you are prepared to see.
Side by side
| Gold | Silver | |
|---|---|---|
| Spot price (24 Oct 2026) | $3,996.90 an ounce (about €3,571) | $54.05 an ounce (about €48) |
| VAT when buying in Spain | Exempt if it is investment gold | 21% |
| When selling | Capital gain for income tax | Capital gain for income tax |
| Share of industrial demand (2025) | About 6.5% (technology) | About 58% |
| What moves the price most | Investors and central banks | Industry and investors |
| Space to store €10,000 | About 87 grams, smaller than a matchbox | Over 5 kilos, half a litre of metal |
What VAT changes, with 1,000 euros
At prices on 24 October 2026 and leaving out the dealer's premium:
- In gold: €1,000 buys 0.28 ounces, about 8.7 grams of fine gold. There is no tax on the purchase.
- In silver: of that €1,000, €173.55 is VAT. The remaining €826.45 buys 17.1 ounces, about 532 grams. Without VAT it would be 644 grams.
Put another way: for silver to get back what you paid, its price has to rise by at least 21%, and a little more once you count the purchase premium and the spread when you resell. With investment gold that step does not exist. We explain it in detail in investment gold and VAT.
How much space each takes
On 24 October a kilo of gold was worth about €114,800 and a kilo of silver about €1,550 before VAT. And since silver is almost half as dense (10.49 grams per cubic centimetre against 19.32 for gold), storing the same money in silver takes about 113 times more space than in gold. For small amounts it makes no difference; for large ones, storing silver becomes part of the decision.
The gold/silver ratio
It is the number of ounces of silver needed to buy one ounce of gold. On 24 October 2026 it stood at 73.95 (3,996.90 divided by 54.05). It moves a lot: in March 2020 it went above 120. Many people watch it to decide how to split what they buy between the two metals, but on its own it predicts nothing: it shows which of the two is relatively dearer that day.
Where demand comes from
Silver. According to the Silver Institute, 1,130 million ounces were demanded in 2025, and 657 million went to industry: electronics, power grids, cars and solar panels. That industrial demand fell 3% in 2025, mainly because panel makers are using less silver per cell. Even so, the market has now had five years in a row with more demand than supply.
Gold. According to the World Gold Council, technology took only about 323 tonnes in 2025 out of 5,002 that changed hands during the year. The rest went to jewellery, investment and central bank purchases, which is what most influences its price.
How they are taxed when you sell
The same way. If you sell for more than it cost you, the difference is a capital gain in the savings base of income tax, at rates from 19% to 30% depending on the amount. The VAT you paid on silver is not refunded, but it is part of your cost, so it reduces the gain. See how much gold you can sell without declaring it.
A real case: gold and silver together
A client who started in January 2025 with €8,000 split between gold and silver, on a 36-month plan, had a valuation of €12,585 in July 2026, a capital gain of 57.3% on what was paid in. It is one specific case, over a period in which both metals rose a lot; prices can also fall, and the past does not guarantee what comes next.
How we see it at Equus
As official SilverGold consultants in Valencia, what we usually explain at the first consultation is simple: gold for your wealth, silver to start with a small amount, knowing it pays VAT and moves more. How much of each, bars or coins, all at once or monthly, is looked at case by case. If you want to go through it with your own figures, the details are at buy physical gold and silver in Valencia.
Frequently asked questions
Which is better, gold or silver?
It depends on the goal. Investment gold pays no VAT, takes up little space and its price moves less. Silver is cheaper per ounce, pays 21% VAT and moves more because it depends heavily on industry.
Why does silver pay VAT and gold does not?
Because the VAT Act only exempts investment gold: bars of 995 thousandths or more and gold coins that meet certain requirements. There is no such exemption for silver, so it is bought with 21% VAT.
How much metal do I get for €1,000 in gold and in silver?
At prices on 24 October 2026 and without premium, about 8.7 grams of gold or about 532 grams of silver, because €173.55 of the €1,000 spent on silver is VAT.
What is the gold/silver ratio and what is it today?
It is how many ounces of silver one ounce of gold costs. On 24 October 2026 it was 73.95. In March 2020 it went above 120.
What share of silver demand is industrial?
In 2025, about 58%: 657 million ounces out of 1,130, according to the Silver Institute. For gold, technology is around 6.5%.
Can I recover the VAT on silver when I sell?
A private individual cannot. It is, however, part of your cost, so it reduces the gain you declare for income tax.
Are gold and silver taxed the same when sold?
Yes. The gain goes into the savings base of income tax, at rates from 19% to 30%.
How much space does €10,000 take in gold and in silver?
In gold, about 87 grams. In silver, over 5 kilos, about 113 times the volume.