In any economic circumstance, but particularly in times of crisis, gold has been and continues to be one of the most well-liked assets. It is the perfect defensive asset that protects your money against market collapses, inflation, and depreciation. Interest in gold is now high: many experts are sure that in the coming years, the price of the precious metal will rise. This article will tell you how to invest in gold properly.
There are various methods for investing in gold, both through the stock exchange and through the purchase of physical items. Here are some of them:
- Investing in coins at banks;
- Acquisition of gold bars;
- Impersonal metal account;
- Futures for gold.
Purchase of Investment Coins
Almost every bank offers the best deals at a fixed price.
In order for the numismatic value of the coin to more than cover the production costs and considerable bank commissions, you will have to hold it for quite a long time. It is quite natural that the prospect of waiting for a profit for many years does not please too impatient citizens, so investing in coins is an unacceptable way for a category of investors who want to get everything at once.
Coins must be stored in a special case (original packaging) and not damaged. Otherwise, it will be difficult to sell them.
Advantages of coins:
- They are easy to buy and sell;
- Available to a wide range of the population;
- For the purchase and sale of VAT is not paid;
- A fairly understandable tool for investing;
The disadvantages of gold coins as a means of investing in gold come from the fact that it is still a product such as jewelry:
- For gold coins, the purchase amount can be quite large;
- Very fragile item;
- You can sell coins only at the bank at a predetermined price;
- Low liquidity;
- The precious metal in the coin is quite expensive.
To illustrate the last statement, you must examine gold price trends.
Purchase of Gold Bars
Investing in bank gold bars seems to be a more interesting type of precious metals investment for those who want to earn money quickly. It should also be noted that the cost of one gram of gold in an ingot is somewhat lower than in a coin, it makes this investment strategy much more appealing.
The ingot has no additional jewelry value. However, damaging it will also result in a discount on the bar. The ingot also needs to be stored in a special case. A special certificate is issued for the ingot.
You can buy ingots from 1 gram to 1 kg.
The drawbacks of buying gold bars:
- The bar does not generate income in the form of interest or coupons;
- When selling, you may have to pay an income tax of 13% on the entire cost of the bar;
- The risk of loss through theft or forgetfulness lies with you;
- The purchase price and market price are different;
- You can purchase gold bars in banks or in specialized stores such as the Mint.
Bank gold bars have different weights, and the price per gram of the pricey metal in them can vary significantly. As a rule, the cost of a gram of gold within a bar reduces as weight increases.
Impersonal metal accounts
Another option for acquiring bank gold that is rapidly gaining popularity among investors is the method in which the metal is not physically delivered to the buyer. The main advantage of such an investment is the ability to buy an almost unlimited amount of precious metal. Moreover, the cost of such gold will be somewhat lower than the real one.
The price of non-cash gold does not include the cost of producing ingots and their delivery to our country. But working with him is no more difficult than with the real one. A so-called impersonal metal account is opened in the bank in the name of the investor, to which all the purchased gold is credited. Such an account is practically no different from the usual one. If an investor wants to place non-cash gold on a deposit, the precious metal will be transferred from the metal to the appropriate bank account without any problems.
It’s best to purchase gold from a dealer whose staff is always ready to answer your questions. They can tell you about your options and show professional courtesy by quickly responding to phone calls and emails and fulfilling orders promptly. The best place to buy physical gold and silver is a dealer who values every customer.