The holding cost keeps running. | Canvas of Knowledge

The purchase is only the beginning

Storage, insurance and administration can create costs after a silver purchase has settled. The CFTC includes these among the questions a physical-metals buyer should examine. A dealer premium is usually attached to acquisition; a custody fee may recur for as long as the metal remains in storage. Comparing only the purchase quote can therefore miss an important part of the ownership arrangement.

Ask what the percentage applies to

A quoted percentage needs a base and a time period. Some providers calculate custody charges from the average market value of a holding, with invoices issued periodically. The Royal Mint's published schedule illustrates how rates can differ by product format. Another service may use a fixed fee, a minimum charge or different billing rules. Read the applicable current schedule rather than transferring one provider's terms to the whole market.

Make the arithmetic explicit

For a hypothetical holding valued at USD 10,000 throughout one year, a 1% annual charge equals USD 100. If the fee is based on changing market value, the amount will change with that value. This example excludes taxes, shipping, purchase premiums and resale spreads, and assumes fees are paid separately rather than by selling metal. It illustrates the calculation; it is not a provider quotation.

Insurance has a defined scope

Check who holds the metal, what records identify the holding, what insurance covers and how any claim would be handled. Insurance against specified physical loss is not protection against a fall in silver's market price. Ask separately about withdrawals, delivery, account closure and sale charges. Written terms and regular statements make it possible to compare the service actually purchased with the fees being paid over time. The relevant comparison is the service received for the total amount paid. An apparently cheaper headline rate can be less attractive if the holding is small enough for minimum charges or withdrawal costs to dominate.

FOLLOW THE EVIDENCE

Sources & further reading

Sources checked 14 November 2026. Reference organisations do not endorse this website. Price examples are hypothetical and educational.