Do you remember the first Cook Islands Coin Bars from 2007? It looked like a bar that someone glued a coin onto: tax-optimized, but otherwise … well.
Seven years later the first cast coin bars are available for sale. Men, who statistically prefer bars, will notice the difference when it is held in the hand. A cast has a different quality to a bar that was stamped.
Cook Island bars are tax-optimized from Switzerland.
The first coin bars were invented and produced in Germany. For the right to mint coins, which the government of the Cook Islands (close proximity to New Zealand) have made available, so that it is a tax-advantaged coin (formerly 7 instead of 19 percent VAT) a license fee per piece was granted.
Changes in tax law made it necessary that silver bullion coins are allowed to be produced in a third country to benefit from the margin scheme. Certainly no location advantage for German silver bullion producers, but at least it was the Germans that “discovered” the utilization of differential taxation on silver coins.
Now Argor-Heraeus in Switzerland cast these bars in 999.9er Silver and provides a certificate on the back of each bar, as you can see in the following short video clip:
It is not standard that certificates are issued with bars. Here it makes sense as the 999.9 purity is once more confirmed. This has an advantage when reselling. The bar must not be sent to be analyzed (no separation is necessary), but can be immediately applied to a production process. The result, of course, is a higher price upon resale.
Currently, there are 1 and 5 kg bars available. Other denominations are planned.
Purchase Cook Islands coin bars cheaply
The surtax of eight percent for coin bars is the same for coins that are from a third country. Nevertheless, the bars at the time of production is slightly cheaper than a comparable bullion coin … and they can be stacked on top of each other for efficient storage.
[Bild mit den Silberprodukten einfügen]
Usually, the tax on bars is an additional 19 percent. This explains the price difference between the classical investment bar in the photos and the online store www.silberling.de.
Target group: private individuals
The coin bars are of particular interest to private investors as they have no way to deduct tax.
For companies, who purchase silver bars for their business (company inventory) and are entitled to input tax reduction, the purchase of margin scheme products does not make sense, since there is a tax statement on the bill and thus the tax can not be offset.
If you decide to purchase coin bars for optical reasons, ask your dealer if he can get you some with value-added tax ID.
The margin scheme significantly increases the administrative burden for precious metal dealers, so that not all dealers offer coin bars with VAT … this only makes sense for companies with a preference for quality and taste … for private customers the coin bars is tax-optimized.
PS: The Bounty motif (the ship on the front of the bar), gives a sense of freedom to many buyers. Now if that is not an additional reason to buy …