Investing in gold - pros and cons. What are investment coins, their advantages and disadvantages Gold jewelry

Investments in gold have been appreciated for a long time - the ancient Egyptians made jewelry from the yellow metal 5 thousand years ago, and in the 6th century BC. The first gold money appeared. Merchants sought to create a standardized currency that would simplify relationships in the market. The value of gold products was recognized throughout the world, the answer was obvious - these are coins made of gold.

After the advent of gold money, the importance of this precious metal continued to grow. At different stages of development, the largest empires introduced the “gold standard”:

1. Britain developed its own metal-based currency - the pound, shilling and penny were worth the equivalent amount of gold (or silver) in them.
2. In the 18th century, the US Government established a metal standard - each monetary unit must be backed by a precious metal - for example, one US dollar was equal to 24.75 grains of gold. That is, the coins that were used as money represented the gold that was stored in the bank.

In the modern world, gold no longer supports the US dollar or other currencies, but still has enormous influence in the global economy. Gold is not at the forefront of everyday transactions, but the reserve balances of national banks and large financial institutions such as the International Monetary Fund are held in gold.

Investing in gold - pros and cons

Gold looks stable from an investment point of view, unlike currencies, but many wonder whether it is worth investing in gold and what the benefits of this investment are. Until 2011, the value of this precious metal was growing at a good pace, but gold also experienced a collapse. Now, although the price has stabilized (fluctuates between $1200-1400 per troy ounce), investors are still wondering whether the price of gold will rise and whether it is profitable to invest in gold.

Investing in gold - pros

Gold proponents believe that gold is a good hedge against currency devaluation and a safe haven for investors during times of global turmoil. The advantages of investing in gold are obvious:

1. This is a highly liquid asset and is easy to sell.
2. Gold is stable because... does not depend on the economy or currency of any country, is a protection against inflation, and will never depreciate.
3. No special conditions are required to store gold.
4. Metal does not deteriorate.

Investing in gold - cons

Investing in gold is definitely not a path to quick wealth. Gold investments can protect against strong inflation, but are unlikely to increase the total capital if we are talking about short-term periods. There are some disadvantages to investing in gold:

1. There is no constant income - many prefer to invest in business and economic development, rather than just keep money in a safe. There is an opinion among financiers that if everyone invested in gold, the economy would not develop.
2. A wide range of volatility means that even a slight decrease in price will lead to significant losses when selling when it comes to deposits for a short period.
3. High spread – the difference in price between buying and selling is large. To get a good income from the sale of gold, you need a significant increase in its exchange rate.
4. You can’t spend it if necessary—you can’t go to the store with gold, you can’t pay off your loan. It may happen that you have to sell gold assets at the wrong time and lose large sums.

How to invest in gold correctly?

Investments in gold are often used to diversify an investment portfolio for the purpose of insurance - while the exchange rate falls and states issue more and more, gold becomes more expensive. How to invest in gold to not only ensure the safety of your assets, but also get benefits? First you need to understand what options for gold investments exist.

Investments in gold bars

Investment gold bars are the preferred form of investment in this precious metal for financial institutions, the government and those with a lot of money. The reason is that the purity of gold bars must be over 99.5% to qualify as investment grade, and the weight must be high, from 400 ounces, that is, 1 kg.

Pros of investing in gold bars:

• lowest price for physical gold;
• produced by reliable mints or large oil refineries.

Minuses:

• difficult to sell due to net worth;
• risky to store at home;
• inconvenient to use for small and medium-sized transactions.

Investing in gold coins

• commemorative - produced in limited editions;
• investment - are a round gold bar with markings;
• antique - have historical value in addition.

The most expensive coins are antique ones. To make a successful purchase, you need to be an excellent specialist, then there will be a real chance to make a good profit. In addition to the value of physical gold, antique and commemorative coins have a collectible value that increases over the years.

Investing in gold jewelry

Investing in gold is not limited to gold coins and bars. They also invest in jewelry. For example, in India, this is one of the best ways to invest in gold - jewelry in this country is in high demand, and the creation costs are lower than in other countries. But all over the world, gold jewelry is in demand among investors:

• they are easy to transport;
• can be donated if necessary;
• can be sold at a higher price, betting on the personal preferences of the buyer.

Investments in gold mining

Buying shares of gold mining companies is another way to invest in the yellow metal. If gold prices rise, naturally the “producers” also benefit. Such long-term investments in gold have their own risks - if prices do not decrease, then something may go wrong within the company. It is worth considering that this option of investing in gold has a significant advantage - a high probability of huge profits, especially when we are talking about companies that are actively searching for and developing new deposits.

Investing in gold - books

Books about investing in gold will tell you in detail about all the nuances of this way to strengthen your well-being:

1. All about investing in gold. Author John Jagerson helps investors invest and allocate their funds wisely. His book is a practical guide for “gold” investors.
2. A Guide to Investing in Gold and Silver. Michael Maloney, the author of the book, considers investing in precious metals to be the best investment option, sharing his secrets on how to get maximum profits and recognize the best gold deals.
3. The ABCs of Gold Investing: How to Protect and Build Your Wealth. The book by Michael J. Cosares can only be read in English for now - The ABCs of Gold Investing: How to Protect and Build Your Wealth with Gold, it's worth it.

Today, investing in gold is a profitable opportunity to invest money in the purchase of bullion or the asset itself through the stock exchange. Given the high liquidity of the asset, they are considered a popular type of deposit, regardless of the amount of available funds or financial knowledge. The current method is to work with a broker who will allow you to purchase an asset through the MetaTrader 4 (5) trading platform or in another way.

Ways to invest in gold

Buying gold as an asset on the stock exchange is the simplest and most profitable type of investment. In addition, some people prefer gold deposits that are offered by private financial companies or banking institutions. Such a solution does not require specialized skills from a person. skills or knowledge in trading. Investments in gold can be made:

• direct deposits through a financial broker, as described above;
• purchasing a bar or coin made of this precious metal;
• purchasing shares of gold mining companies (through the stock exchange).

Ingots

Due to price fluctuations, trading on the stock exchange is considered riskier than investing by purchasing a physical asset. A solid ingot has its own numismatic value, and with long-term storage and with an increase in the exchange rate, it can bring a good income. Today the value of this precious metal periodically rises, as evidenced by the price chart.

When global crises occur, the value can either increase or decrease by several hundred points. The bullion will have a fixed cost and high investment attractiveness, even taking into account the jump in the exchange rate. However, it is worth considering that the purchase of bullion is subject to VAT, so you will have to pay 18% of the value of the asset, which reduces its investment attractiveness.

Investments (gold coins)

You can always make money by purchasing precious metal coins. Considering the increase in price, the profitability of investments in gold can be up to 5-10% per annum. When purchased, each coin is accompanied by a certificate of quality and originality, which is an additional guarantee. The advantage of this method is the low cost of coins: the price starts from 50 US dollars, and depends on sample size and purity.

Jewelry gold

Buying jewelry gold is a less attractive type of investment. This is how many pawn shops make money. Jewelry gold can be purchased either new or previously used. The cost of used jewelry is always lower than the market price of the precious metal itself. Unlike stock trading, this purchase does not require knowledge of a computer, trading platforms, stock exchange fundamentals, etc. It's profitable to open your own pawnshop or a point of buying jewelry from the population.

Is it profitable to invest money in gold?

Considering the stability, liquidity and upward trend of the asset price, many prefer to invest in the purchase of futures, purchasing the asset itself through the exchange. It is important to invest in shares of gold mining companies. Considering the absence of a bank commission for direct deposits through the exchange, analysts recommend contacting only trusted financial companies, avoiding risks. Investing is less profitable through the purchase of bars or coins.

Return on investment

Smart investments in gold can have a return of up to 24-27% per annum. This indicator was taken based on asset price data over the past 10-15 years. That is, with a deposit of precious metals worth 10,000 US dollars 15 years ago, now the investor would have received 32,000-35,000 dollars. This means that the average profitability was almost 25% per annum.

The precious metal has high liquidity, so you can always sell it - in the same bank or on the stock exchange. Price trends are characterized by long periods of growth and decline. Currently there is a slight increase in value. By trading on the stock exchange, you can earn much more - it all depends on the quotes. By using price reductions, you can make money in the same way as by increasing prices.

How to invest money in gold

One of the characteristics of precious metals is the limited nature of the resource that is extracted from the earth. Any limited material tends to increase in growth, such as oil, coal, diamonds. If you prefer to make investments through the stock exchange, there is no insurance system, which increases the risk, and you will first need to acquire the skill of working with a trading terminal.

The advantage of stock trading a valuable asset is that even a price jump can bring profit if you bet on a decrease in value. The prospects for high earnings when buying bars or coins are much lower - this is high-quality protection against currency depreciation. Tools like ransom jewelry, you can make it work for you (for example, open a pawn shop).

Unallocated metal accounts

The current type of investment - impersonal metal accounts, or OMS - is characterized by the purchase of the right to a certain amount of precious metal. If you suddenly need money, you will return it through a buyback (for example, to Sberbank). Refunds are based on the price of gold at the time of sale. If it has risen during the entire period of storage of funds, then you will make a profit. If not, then just save yourself from the fall of the currency exchange rate and the depreciation of funds.

Investing in gold in this way is convenient for those who do not want to associate themselves with banks or complex stock exchange games. Each investor is assigned an electronic wallet to depersonalized metal accounts, where the volume of precious metal purchased by him is stored. When storing funds, the investor will not need to protect or insure the contents. It is better to trust trusted companies and international services, without investing through unknown and dubious platforms.

Playing on the Forex stock market

Investing in gold on the stock exchange is no different from investing in company stocks, oil or silver. By purchasing a specific lot, you can make money from price increases and decreases by trading on the exchange. These investments are suitable for those who are well versed in the Forex system and know how to work with trading platforms MetaTrader 4 or 5. The main thing is knowledge of the markets, the ability to technically analyze a chart and make forecasts.

Investing does not require the value of an asset to constantly increase - you can make money even when the asset falls. In this case, it is unlikely to be possible to store money in gold, because the specifics of the stock exchange require active trading, and you will need to spend your own time on this. Such investments in gold are only beneficial for experienced traders.

Investing in gold through ETFs

Exchange-traded funds, or ETFs, are services that make joint private and corporate investments directly into shares of gold mining companies. In parallel, they acquire a number of investment portfolios for the asset itself (precious metal). Unlike long-term, but independent deposits, here all procedures are accompanied by documents, and the money is protected by special funds. You can earn money up to 30% per annum without significant risk.

In the process of investing in gold, exchange-traded funds keep records of all positions, and each investor can monitor their own earnings. Through such exchange-traded funds, it is possible to diversify funds into silver, oil and other positions with active price growth. The downside here is the need to pay commissions. For example, if the price of a precious metal rises by 10%, then your earnings will be slightly less. This is a fee for a minimum percentage of risk.

Gold Mutual Funds

Gold mutual funds have shown good growth dynamics over the past few years. These funds are similar in structure to ETFs. For example, Sberbank's gold mutual fund actively invests in the PowerShares ETF, while receiving small percentages of profit. Such deals are not subject to VAT. The advantage of deposits is the safety of funds, but the disadvantage is a small percentage of possible earnings. Taking into account exchange rate fluctuations, the yield ranges from 0% to 15-17% per annum.

Mutual fund investments are made in the virtual asset described above. In this case, a real bullion is never purchased - investments in gold increase from the growth of shares of mining companies and from the growth of the metal itself. As a result, investments directly depend on real quotes, which can fall or rise daily.

Gold futures contracts

An analogue of exchange trading are gold futures contracts, when you enter into an actual virtual contract to buy or sell an asset at a pre-agreed price. To exclude speculative transactions physical There is no delivery of gold - all cooperation is carried out on the basis of a contract. This way you can determine a more favorable price for yourself and avoid losing your investment if the price drops sharply. Execution of futures is binding on all parties.

Investments in gold mining

The rise of the jewelry industry increases the attractiveness of companies mining and processing precious metals. One of the ways to invest in gold is to purchase shares of mining enterprises or invest in the assets of the Central Bank of Russia. There is no physical acquisition of metal here (bars or coins are not purchased), but redemption volume of company shares. This can be done through any exchange. Investments require certain knowledge and experience in working with MetaTrader trading terminals.

Pros and cons of investing in gold

To receive a certain income, choose the current type of deposit. If your goal is to preserve funds and protect them from depreciation, then choose bars or coins with high quality mintage. For other purposes, stock trading is suitable. All contributions have the following advantages:

• artistic value (ingots and jewelry), which increases its liquidity;
• constant increase in price due to limited resources;
• lack of influence of exchange rates, indirect influence of crises on the value of the position;
• no risks of depreciation.

Disadvantages of such investments:

• small percentage of return on deposits;
• minimum income when purchasing physical metal (regardless of weight, grams);
• For exchange trading on favorable terms, you must have theoretical and practical skills.

Is it profitable to buy gold at Sberbank?

For a troy ounce (31.1 grams) today at Sberbank you can earn about 77-78 thousand rubles. It is noteworthy that the figures have been increasing over the past five years. Even with the fall in quotes in 2011, Sberbank offered loyal prices for this precious metal. If you look at the price chart of this state-owned bank, you can clearly see promotion with a slight pullback in value at the beginning of 2017.

Today, this type of investment through Sberbank of Russia is considered attractive. The company produced its own bars of different weights - from 1 gram to 1 kilogram. To purchase, you should go to any large branch and check the information with the manager (or first find out availability by contact phone number). When buying an ingot weighing one gram, the buyer will have to spend about 2.5 thousand rubles - this depends on the current exchange rate. You can sell an asset in the same way - through the bank and its representative offices.

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Since ancient times, investing money in precious metals has been considered one of the most reliable ways to preserve capital. Investments in gold are available to everyone today. However, there are a lot of subtleties that are useful for a novice investor to know about. Despite all the reliability of bank storage, there is also a risk of losing money invested in the precious metal.

To invest money in gold profitably, you must first understand the options available to do so.

There are four types of investing in gold:

• Golden coins;
• gold bars;
• gold deposit;
• jewelry.

There are two types of precious coins:

1. Investment. The cost of these is determined primarily by the quality of the material. Typically, banks purchase these coins at a much lower price than they sell them for.
2. Memorable. Such coins are valued according to their collectible value. There are special catalogs.

If a person does not understand numismatics, it will be difficult for him to determine the true value of coins. It is best to seek the help of a professional.

You cannot buy coins without packaging. The gold coin must be in a sealed capsule. The latter must be carefully examined before purchase to see if it has been opened.

Gold bars

It is believed that this type of investment is the most reliable. Its most important advantage is that you can store any number of bars.

When purchasing an ingot, you need to carefully look for any damage or contamination. You also need to check the documentation - the manufacturer’s certificate and passport. The receipt must include the following purchase information:

• price;
• series number;
• try;
• quantity;
• name of metal;
• time of the transaction.

Gold deposit

Many banks offer services for investing in gold. First of all, you need to understand which type of deposit is preferable:

1. Impersonal. The client transfers to the bank an amount of funds equal to the value of the gold he is purchasing. Its profit will depend on changes in the value of the precious metal.
2. Standard bullion purchase.

If the client transferred bullion to the bank, he will be able to pick it up at the end of the contract. However, you will be forced to pay value added tax.

Jewelry

Buying gold jewelry is a profitable investment, but it can only be considered as a long-term one. Let us also note that usually the lion's share of the cost of a piece of jewelry is the labor of the craftsman, and during resale only the weight of the item is taken into account.

Another disadvantage is that gold jewelry contains not only pure gold, but also impurities.

The following conclusions can be drawn: investing in gold jewelry makes sense only when it is a rarity or a work of art.

How to open a gold deposit?

To open a gold deposit you need:

• passport;
• application for opening a deposit, written according to the established template;
• an agreement with a banking organization, which stipulates the opening and closing of a deposit, acceptance and transfer, etc.;
• a written order to accept precious metals into the bank vault.

Some documents from the list are drawn up and signed when completing a transaction directly at the bank.

How to get maximum income?

Investing in gold is a popular and reliable financial investment. Gold is still the hardest and most unshakable currency. However, to achieve maximum benefits, you should not invest all your money in the precious metal: no more than 25% of your savings, choosing a calm period for this, and not a time of crisis.

Part of the money should be invested in coins, since such an investment is not subject to VAT. You should choose not the smallest ones in size, since the assessment is made by grams. You need to store coins carefully, otherwise the bank will not buy them back.

Pros and cons of investing in gold

When investing in gold, there are pros and cons to each of the options discussed.

Pros of storing gold in a bank:

• prestige;
• reliability.

The disadvantages include:

• long investment period;
• there is a significant difference between the purchase and sale prices;
• the need to pay VAT.

The coin option also has advantages:

• availability;
• possibility of collecting.

But there are also disadvantages:

• you need to be an expert and understand the value of coins;
• Only the owner is responsible for safety and security.

Pros of buying gold jewelry:

• Availability: you can buy it at any jewelry store;
• Possibility of use as decoration.

• if there is a need to sell, it is not always possible to return the full amount of the cost;
• gold in jewelry is not in its pure form, but with impurities.

A gold deposit also has pros and cons.

Among the advantages we note:

• gold is stored securely, thus the risk of loss is minimal;
• Interest accrues on gold deposits.

Of the main disadvantages, we note one: the lack of a money back guarantee. In case of force majeure, the bank will not return the money.

Whether or not to invest money in gold is up to everyone to decide for themselves. It is reliable, but you will get significant profits with a long-term investment. Accordingly, you will have to look for other options for monthly cash receipts.

Investing in precious metals is considered one of the most highly profitable and reliable ways to invest your savings. For beginners, everything looks very simple: you buy gold and wait for its price to increase, sell it at a better price and make a profit. However, in reality, gold investments have a lot of features that every novice investor should know. How to invest money in gold to get a good profit? What investment options exist and how do they differ?

Standard ways to invest in gold

Among the main options for investing in precious metals, there are three:

• Ingots;
• Investment coins;
• Metal bills.

Ingots

Buying bullion seems to be the most “obvious” of the listed options. The advantage of investing in bullion is its reliability. Having physical gold in hand, the investor does not depend on the reliability of the bank and is practically independent of legislative changes that may be adopted to regulate the precious metal market.

Buying bullion has two very significant disadvantages: the taxation of the purchase and the problem of storage.

According to Russian tax legislation, when purchasing gold, VAT is taken into account in its price, that is, the buyer pays 18% above its real value. When selling an ingot to a bank, there is no tax on the sale amount. It turns out that if the price of gold during the period of ownership of the bullion remained stable, then you will not be able to make money by selling the metal.

Bullion is not the most attractive investment option due to the need to pay VAT when purchasing it.

Investments in gold require solving issues related to ensuring their safety. When purchasing bullion, it is important to understand that you will have to rent a safe deposit box for them. In addition to additional storage costs, the investor also faces the risk of loss, since institutions providing safes do not bear full responsibility for the safety of their contents.

The liquidity of bullion is low; it will not be possible to quickly sell it if necessary. Investing in gold this way requires large amounts of money.

Investment coins

Investing in bullion coins is somewhat similar to buying bullion. A significant advantage of purchasing coins is the absence of VAT. But there are some pitfalls here.

Part of the value of any coin will come from the labor of minting and distribution, rather than from the gold portion of the alloy. There is a large gap between the purchase price and sale price of the product by the bank - the investor may receive a loss instead of a profit, since the cost of coins grows very slowly. This investment method should only be considered as a long-term investment.

Investment coin of the “Olympic” series.

Coins can have value not only because of the original precious metal, but also because of their numismatic nature. Investing money in gold in the form of coins is not difficult, but selling it after a certain period of time is problematic. Reviews from experts indicate that selling collectible coins is even more difficult than simply selling investment coins.

Among all the ways to invest in gold, impersonal accounts are gaining popularity. In fact, the investor does not become the owner of physical metal in the form of an ingot, but receives the right to demand fulfillment of the banking institution’s obligation to pay an amount of money equivalent to the cost of grams of gold held in such an account. You can also receive an ingot by paying additional VAT.

Investing in gold in the form of compulsory medical insurance has the greatest liquidity and does not require storage costs. The big disadvantage of such an investment is the lack of insurance for individual deposits. Legislation in this area does not apply to compulsory medical insurance; the reliability of the investment depends on the reliability of the bank where the account is opened. But the bank charging interest on a gold account can be an additional means of generating profit.

The only drawback of compulsory health insurance is the lack of state insurance as with regular deposits.

Opening a compulsory medical insurance is not difficult; many banks now provide services for maintaining impersonal accounts. If a decent amount of money is required to purchase a bullion, then the investor’s initial contribution to compulsory medical insurance may be within the minimum amount.

Game on the stock exchanges

How to make money on gold in other ways? As options for earning money from rising gold prices, potential investors are advised to consider gold ETFs and purchasing gold through FOREX.

What does investing in funds that are traded on an exchange mean? The investor buys shares of those funds that themselves invest either in gold or in securities tied to precious metals. Exchanges can be accessed by opening an account with a broker.

The advantage of such an investment is the small gap between the buy and sell quotes; for some ETFs it is completely minimal. The investor gets the opportunity to react to market changes instantly, buying and selling shares without leaving home.


There are also disadvantages to buying gold ETFs. The reliability of the investment will depend on several factors:

• Broker's solvency;
• Integrity of the fund;
• The reliability of the bank where the fund's bullion is stored.

Investing in gold through an ETF has currency and regulatory implications. Reviews from brokers indicate that the process of transferring funds to an account due to conversion can take several days.

How is playing on the FOREX market different? An investor buys virtual gold through a broker. The operation is similar to playing in a casino. You can get real results if you buy gold only with your own funds, that is, leave a security deposit that would cover your investments. The gap between buying and selling here is also minimal; the market allows you to quickly respond to all changes.

Among the disadvantages of investing on FOREX, we should note the questionable reliability of brokers compared to ETFs.

As with ETFs, trading gold on Forex requires a certain level of professionalism and mental stability.

It is beneficial for the broker if the player actively uses leverage. Investing in gold in the FOREX market requires mental toughness to resist the temptation to use maximum leverage. Professional competence in the field of FOREX trading is also important for a potential investor.

There is another way to invest in precious metals – gold-backed electronic money. Such “Internet currencies” are an obligation of the company that created the payment system to pay a certain amount of gold. /This direction began to develop relatively recently and has many shortcomings from the legal side. The reliability of an investment is ensured only by the reliability of the company that issued such “money”.

Guidelines for “gold” investing

Investing in precious metals must be wise. How to invest money in gold correctly and profitably? There are several guidelines for beginners.

If you do not belong to the category of exchange players, then investing in precious metals funds that you may urgently need does not make any sense.

Buying physical gold for a short period of time is pointless, since the liquidity of bars and coins is low, plus you can get a loss instead of a profit.

Futures, options and ETFs are used to play on the stock exchange, but speculative operations require professional knowledge in this area and a special “feel”. Investing in gold in the form of compulsory medical insurance will be less profitable, but feedback from investors suggests the relative effectiveness of this method.

Investing free capital in gold for a long term can be done if you are focused on reliability. The duration of such investments can be measured in tens of years. If you are comfortable with making a profit over a long period, then it makes sense to buy physical gold in the form of bars.

Investing in gold is only worth it for the long term.

Investing in the precious metal for an average period of up to three years is possible only taking into account forecasts for the growth of gold prices. The investor may make a profit in the medium term, but there is also a high probability of loss.

Investing part of your money in gold is considered one of the options for reliable insurance of your savings against currency depreciation.

The choice of form of investment in gold depends on how long you expect and what income you want to receive when prices for the precious metal rise. Buying bars and coins is considered the safest investment, followed by gold ETFs, then metal bank accounts. Based on profitability, methods of investing in gold can be ranked in the following order: gold ETFs, compulsory medical insurance, bars and coins.

Pros and cons of investing in gold

Investing in gold ensures the safety of the investor's funds. In the long term, the price of gold is still growing, even if some declines are periodically observed in the dynamics of quotations. Such an investment will not completely depreciate even as a result of global economic or political shocks.

Among the disadvantages of investing in gold are price fluctuations, which can bring losses to the investor over a short-term investment period. Purchasing precious metals may be less profitable than other types of investments. Opening impersonal accounts or purchasing gold ETFs does not at all guarantee the possession of physical metal; their reliability is supported only by the reputation of organizations and current legal regulations.

The question of how to make significant money on gold remains open. Most often, investors, in a crisis economy, have to choose reliability rather than high profitability of their investments. In this case, gold plays the role of a “shelter”, capable of at least preserving the funds of the state and private individuals, and at maximum bringing a decent income in the long term.

Alexander Igorevich

Reading time: ~6 minutes

Despite a certain decline in the price of gold, investments in this precious metal continue to be an effective tool for diversifying investment portfolios for both large investors and individuals.

Why does investing in gold remain popular? There are several reasons for this, and here they are:

• high liquidity (selling gold is very easy);
• gold is a measure of securing money at all times;
• unlike currency, gold is not tied to the country’s economy;

Ways to invest in gold

Today, several methods of investing assets in gold are available to companies and private investors. This:

Of course, each of these investment methods has pros and cons, as well as features of conducting investment activities. Therefore, before deciding to use a particular method of investing in precious metals, it is worth studying it in detail.

Non-cash metal bills

Today, almost every Russian bank offers its clients to open a non-entry metal account. When opening such an account, it is worth considering that it does not fall under the deposit insurance program, so it is better to choose a stable banking institution, for example, Sberbank or VTB 24. By visiting the bank’s website, you can find out the conditions for opening such an account.

A metal account is similar to bank deposits, but the account does not contain currency, but a certain amount of precious metal. It can be gold and silver, platinum, palladium and so on. However, most often investors choose gold.

The advantages of this type of investment in gold:

• no costs associated with opening an account (commissions and other payments);
• the ability to get metal in your hands at any time necessary;
• no taxes for certain metal purchase options.

Trading through a broker

This method of investing in gold (silver) does not imply direct participation of the investor in metal purchase and sale transactions. All the necessary actions are performed by the broker himself, and the investor just has to make correct and timely decisions regarding the purchase of certain volumes of gold and their sale.

All gold coins are divided into investment and collectible.

• Investment coins can be purchased at any bank licensed for this type of activity, they do not have a mirror surface, and their cost is close to the price of pure gold. Also, their purchase is not subject to VAT. In Russia, many banks are engaged in the sale of gold coins, including Rosselkhozbank, VTB, Sberbank and so on.
• Collectible coins more expensive than investment ones because they have artistic and sometimes historical value. If there is demand, the price of such a coin can increase several times over a short period of time. However, acquiring such coins is quite difficult, especially those that are issued in limited editions. You can track the release of such coins on the website of the Central Bank of Russia.

You can read more about investing in gold coins in.

Buying gold bars

This type of investment in gold involves the purchase of bars of a certain size, and the transaction itself is secured with a special certificate. It is worth noting that banks have restrictions on the minimum volume of gold sold. Therefore, this instrument for investing assets in gold, as a rule, is the prerogative of large investment companies. It also involves certain additional costs, including the need to store gold bars.

Purchasing gold items

This type of investment in gold is popular only among individuals who, by purchasing gold products, seek to protect themselves from the effects of inflation, as well as “make reserves” for the future. From the point of view of commercial investment, compared to other methods of investing in precious metals, for example, investing in gold mining, this method of increasing financial assets has a number of disadvantages:

• the products are not made of pure gold;
• their cost is exaggerated due to trade markups, taxes and other factors;
• products are difficult to sell even at the price at which they were purchased.