Precious metals are very popular. Investors value gold and silver as a crisis currency and as stable investments gold ira guide. But how do you invest the most and achieve the best returns? Coins, ingots or precious metal ETCs – so you buy right and avoid unnecessary costs.
Should I buy coins, bars or precious metal ETCs?
Investors particularly like standard coins weighing 31.1 grams (1 troy ounce). Gold favorites include the South African Krugerrand, the Canadian Maple Leaf, the Austrian Vienna Philharmonic and the Gold Euro. Also in demand is the silver coin Lunar Series II from Australia. The coins can be purchased at acceptable mark-ups, the difference between buying and selling price, at numerous traders or the house bank. Investors also like to buy small bars (100 grams or 1 oz). This is understandable in the case of gold investments, since a 1 kilo ingot of fine gold costs a small fortune.
High costs for small amounts and denominations
For small quantities or small denominations, the surcharges on the metal price, which can sometimes be 15 and higher, are very significant. Since the precious metal prices have to rise very high, so that the costs come in again. Alternatives are precious metal ETCs or precious metals accounts or savings plans – here, indirect investments are made in so-called paper precious metals.
What is a silver or gold ETC?
Precious metal purchases are not always cheap. Especially with small sums of money the surcharges on the metal price and the costs for storage and administration are very high. A cheap alternative is ETCs (Exchange Traded Commodities) and silver or gold investment accounts. An ETC is a security that you can buy on the stock exchange and put in the custody account at the bank. A cheap and convenient type of precious metal investment. But there is a risk: investors are not co-owners of precious metals assets. If the publisher goes bankrupt, then losses can occur.
Is the precious metals account an alternative to physical gold buying?
Another low-cost alternative to gold or silver in the vault: a precious metal investment account. The owners are entitled to delivery of the precious metals registered in the account. The disadvantage: A delivery is expensive and hardly pays off and in the case of bankruptcy of the provider losses can occur. There is nothing wrong with opening a precious metals account with a reputable provider and adding 5 to 10 percent of your assets to your assets or silver. But please remember: value fluctuations are common. Therefore, you should consider precious metals as a long-term investment and plan an investment horizon of up to 10 years.
Are silver or gold investments safe investments?
Real gold and silver fans know that high price fluctuations and long periods without gains are not uncommon for precious metals. But the past has also taught us that the precious metals have always kept their value and could bring in high returns for their owners, especially in times of crisis. Euro crisis, global debt crises, war and trade conflicts, terror, and bank crises – it seems that our world is out of joint. For precious metal fans exactly the right arguments to promote an investment in gold and silver. In addition to the crisis protection, there is still a good case for precious metals: they are a risk buffer for the total assets and should not be missing in any depot.
Gold and silver for admixture
Precious metals can mitigate the risk of loss for asset or stock holdings, especially in times of crisis. In phases of sharply falling stock prices, the precious metals owners begin the “harvest season”. Many investors shuffle their assets in times of crisis and flee gold and silver. As a result, precious metal prices rise, offsetting some of the price losses of equities or other assets. Therefore, experts recommend a 5 to 10 percent asset admixture of precious metals.
What are the tax benefits of precious metal investments?
Those who buy physical gold, ie coins or bars, have a big tax advantage: With a holding period of one year, profits are tax-free. There is no final withholding tax on capital gains.