Best Silver ETFs for UK Investors 2026: ISA-Eligible ETCs Compared
Compare silver ETCs eligible for UK Stocks and Shares ISAs and SIPPs. Physical-backed ETCs like iShares SSLN offer the most tax-efficient way to invest in silver — no VAT and CGT-free inside an ISA. See how ETCs compare to Silver Britannia coins and check today's live silver prices.
Quick Summary: Best Silver ETCs for UK ISA Investors
Lowest Cost
iShares SSLN
0.20% TER
Mining Leverage
Global X SILV
0.65% TER
Best Tax Wrapper
Stocks & Shares ISA
0% CGT + 0% VAT
Top Silver ETCs for UK Investors in 2026
UK-listed silver products are technically ETCs (Exchange-Traded Commodities) rather than ETFs, because UCITS rules require diversification that a single-commodity tracker cannot satisfy. Despite this technical difference, ETCs trade on the LSE just like ETFs and are eligible for ISAs and SIPPs.
| ETC Name | Ticker | TER | Backing | ISA/SIPP | Domicile |
|---|---|---|---|---|---|
| iShares Physical Silver | SSLN | 0.20% | Physical 999 silver | Yes | Ireland |
| Xtrackers Physical Silver | XSLR | 0.20% | Physical silver | Yes | Jersey |
| WisdomTree Physical Silver | PHSP | 0.49% | Allocated silver (HSBC) | Yes | Jersey |
| Global X Silver Miners | SILV | 0.65% | Mining equities | Yes | Ireland |
Why TER matters: A 0.29% TER difference between SSLN (0.20%) and PHSP (0.49%) may seem small, but over 10 years on a £10,000 investment it compounds to roughly £290 in extra costs. For long-term holdings, always choose the lowest TER.
Can I Hold Silver ETFs in a Stocks and Shares ISA?
Yes. All physical silver ETCs listed on the London Stock Exchange are eligible for Stocks and Shares ISAs and SIPPs. This is the most tax-efficient way to invest in silver in the UK — gains within an ISA wrapper are completely free from Capital Gains Tax, and there is no VAT on the purchase or sale.
- +0% VAT — no purchase tax
- +0% CGT — all gains tax-free
- +Instant liquidity via LSE trading
- +No storage costs beyond the TER
- −20% VAT on purchase
- ~CGT exempt (Britannias) or 24% (bars)
- ~Selling requires finding a dealer
- −Storage and insurance costs
Available on all major UK platforms: Hargreaves Lansdown, AJ Bell, Interactive Investor, Vanguard (mining ETFs only), and Freetrade.
Physical Silver ETCs vs Mining ETFs: Which Is Right for You?
Physical silver ETCs (SSLN, PHSP, XSLR) track the spot price directly. Mining ETFs (SILV) hold shares in silver mining companies, offering leveraged exposure — miners typically amplify silver price moves by 2-3x in both directions.
- +Direct price tracking — 1:1 with silver spot
- +Lowest TER: 0.20% (SSLN, XSLR)
- +Backed by physical silver in LBMA vaults
- +Lower volatility than miners
Best for: Core silver allocation, conservative investors, long-term holds.
- +Leveraged returns — 160% in 2025
- +Holds Wheaton (14.8%), Pan American (12.6%), Coeur (8.4%)
- −Higher TER: 0.65%
- −Company-specific risks (ore grades, costs, management)
Best for: Higher risk tolerance, tactical allocation, ISA for tax-free gains.
UK-listed mining stocks: Fresnillo plc (LSE: FRES, FTSE 100) is the world's largest primary silver producer. Hochschild Mining (LSE: HOC, FTSE 250) operates mines in Peru and Argentina. Both can be held in ISAs but carry individual company risk that a diversified mining ETF avoids.
Do I Pay Tax on Silver ETF Gains in the UK?
The tax treatment depends on which wrapper you hold the ETC in. Inside an ISA or SIPP, all gains are completely tax-free. Outside a tax wrapper, gains above £3,000 are subject to CGT at 24%.
| Product | VAT | CGT | ISA/SIPP |
|---|---|---|---|
| Silver ETC in ISA/SIPP | 0% | Exempt | Yes |
| Silver ETC (no wrapper) | 0% | 24% above £3k | — |
| Silver Britannia (coin) | 20% | Exempt | No |
| Silver Bar (UK delivery) | 20% | 24% above £3k | No |
| BullionVault (Zurich) | 0% | 24% above £3k | No |
| Royal Mint DigiSilver | 20% | 24% above £3k | No |
Tax-Efficient Decision Flowchart
Is Silver a Good Investment in 2026?
Silver is in its sixth consecutive year of structural supply deficit, with industrial demand from solar PV, electric vehicles, and AI hardware accounting for nearly 60% of total consumption. The price reached an all-time high of $121/oz (~£95.60) in January 2026.
- +6th year of structural deficit (-245 Moz projected 2026)
- +Solar PV consuming 25%+ of annual supply
- +AI servers require 3.5x more silver than traditional
- +COMEX inventories down 70%+ since 2020
- +~70% of production is a by-product (inelastic supply)
- −High volatility — daily moves of 5-10% common
- −Currency risk (silver priced in USD)
- −Industrial substitution risk at sustained $150+ prices
- −Counterparty risk for ETC issuers (debt securities)
- −February 2026 correction: $121 → $70-$90 range
| Asset | 2013-2023 | 2025 Return |
|---|---|---|
| Silver (GBP) | ~45% | +150% |
| Gold (GBP) | +93% | +65% |
| FTSE 100 | +13% | +20% |
| Silver Miners ETF (SILV) | N/A | +160% |
Past performance is not a reliable indicator of future results. For a detailed comparison of gold and silver as investments, see our gold vs silver investment guide.
Frequently Asked Questions
What is the best silver ETF for UK investors?
The iShares Physical Silver ETC (SSLN) is the best choice for most UK investors. It has the joint-lowest TER at 0.20% (tied with Xtrackers XSLR), is backed by physical 999 fine silver in LBMA-approved vaults, and is eligible for Stocks and Shares ISAs and SIPPs. Inside an ISA, all gains are completely tax-free.
Can I hold silver ETFs in a Stocks and Shares ISA?
Yes. Physical silver ETCs listed on the LSE (SSLN, PHSP, XSLR) and the Global X Silver Miners ETF (SILV) are all ISA and SIPP eligible. Holding in an ISA eliminates Capital Gains Tax entirely — the most tax-efficient route for silver investment in the UK. Available on Hargreaves Lansdown, AJ Bell, and Interactive Investor.
What is the difference between a silver ETF and a silver ETC?
Silver ETFs cannot exist under UCITS rules, which require diversification. UK-listed silver products are ETCs (Exchange-Traded Commodities) — debt securities backed by physical silver. They trade on the LSE identically to ETFs, are ISA/SIPP eligible, and track the silver price directly. The distinction is technical rather than practical.
Do I pay tax on silver ETF gains in the UK?
Inside an ISA or SIPP: no tax at all — 0% CGT and 0% VAT. Outside a tax wrapper: gains above the £3,000 annual CGT allowance (2025/26) are taxable at 24%. There is no VAT on buying or selling silver ETCs in any case.
Is silver a good investment in 2026?
Silver is in a structural supply deficit for the sixth year, driven by industrial demand from solar PV (25%+ of supply), EVs (1.5-2 oz per vehicle), and AI hardware (3.5x more silver per server). After reaching $121/oz in January 2026, most analysts forecast $90-$120 for the year. However, silver is volatile — daily 5-10% moves are common.
How does silver perform compared to gold?
Silver is more volatile but can significantly outperform in bull markets. In 2025, silver returned ~150% vs gold's 65%. Over 2013-2023, gold returned 93% vs ~45% for silver. The Gold-to-Silver Ratio (currently above 61) is a useful timing tool — ratios above 80 historically suggest silver is undervalued. See our gold vs silver investment comparison.
Compare All Silver Investment Options
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Read Guide →About the Author
Founder & Market Researcher
Taro has been actively investing in precious metals and financial markets for over 15 years. Frustrated by the lack of transparent, accurate gold pricing information in the UK, he built London Gold Exchange as a data-driven resource for fellow investors. The site combines real-time market data, verified dealer information from 242+ UK businesses, and insights drawn from years of hands-on experience in the gold market.
- ✓15+ years investing in precious metals & equities
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Important Information
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