People have always thought about how to save and increase their savings. This issue is especially relevant during a period of economic crisis. One option for saving money is investing in gold. Is it worth considering this option, and what are the pros and cons of this method?
History reference
Since ancient times, mankind considered gold the most valuable metal on our planet. Over the years, impressive amounts of money have been invested in it by governments of almost all countries, banks, multinational corporations, as well as the richest people. And investments in gold are made by them for a reason.
The fact is that this metal is highly liquid. Therefore, the demand for it has always been, is and will be stably large. And the famous phrase “People die for metal” confirms that in the entire history of mankind many wars and conflicts have flared up over gold. How many were there? Indicate the exact number no one will undertake!
What is the value of gold?
Why has this metal been so popular for many centuries? The explanation for this lies in its physico-chemical properties, deficit, production complexity and other factors. And, despite the fact that today there is a slight drop in the cost of this metal, investments in it remain one of the most popular investment methods not only for banks and large organizations, but also for individuals. After all, it has historically been the case that precisely gold is a measure of providing paper money. Moreover, it is not tied to the economy of any of the countries, which allows us to consider metal as a reliable asset.
What are the benefits of investing in gold? The reason for this is:
- ease of storage, without creating special conditions;
- the liquidity of the metal, which is always easy to sell;
- the possibility of long-term storage without fear of damage.
As you can see, investment in gold is one of the most reliable and sustainable options for saving money. This is an investment that is practically independent of the liquidity of banks. In addition, it is not subject to impairment even in the event of global political and economic crises. No matter what happens in the world, investments in gold have always been and will be beneficial to its investors. However, despite such positive qualities, the volume of such contributions is relatively small. Why is this happening when you consider that the most reliable investment is in gold? So is it still profitable to invest in this metal or not? Let's consider this question in more detail.
Investment methods
Proper investment is one of the best and most stable sources of income. However, the main task in this case is the correct placement of existing savings. Otherwise, there will simply be no passive income, as it will turn into unprofitable.
Considering investments in gold as investments, it should be borne in mind that this precious metal is present in circulation in the form of ingots and sand, jewelry, nuggets, etc. Moreover, the majority of transactions with gold is possible only for legal entities that have special permission.
As for the majority of people, including investors, they have access to such methods of investing in a precious metal, such as:
- purchase of bullion;
- purchase of coins;
- purchase of jewelry;
- opening a so-called metal account in a bank.
And before investing in gold, the pros and cons of all these options are worth considering in more detail.
Jewelry purchase
How good are such investments in gold? The advantages of this method are obvious. They are the availability of metal. One has only to go to the very first jewelry store on the way, and its sellers will sell any item with great joy. Moreover, the purchase of such jewelry can be carried out abroad. It should be remembered that such things should be used solely for personal purposes. Without payment of duties, it is possible to transport only jewelry, the total cost of which does not exceed 65 thousand rubles.
Such a product with great value is subject to a duty of 30% of the total purchase amount.
In addition, such a simple way of investing is far from profitable. Its main disadvantage is that there is a decent difference between the purchase price and the sale value of such products. This is due to the fact that, when buying jewelry, we pay not only for gold, but also for the work of the master. This fact is never taken into account in the sale, and gold is accepted simply at the price of scrap.
Thus, despite the fact that gold is the best investment, investments in jewelry can become profitable only in those cases when there was a sharp collapse of the currency for which they were purchased.
Bullion Acquisition
This is the most popular investment in gold. Expert reviews suggest that in such cases, the depositor gains independence from the reliability of the bank. However, when purchasing ingots from a Russian bank, the buyer is forced to spend some additional amount of money in order to pay VAT, which amounts to 18% of the price of the ingot. But when selling a product, such a commission is not refundable.
Some nuances arise when considering the storage location of your purchase. And here there are several options. The first of them is to leave the bar in storage in a bank. Moreover, investments in gold and silver can be made in a similar way. The bank will issue a so-called metal account to the buyer. With this option, you do not have to pay a very decent amount of VAT. The bank will take only 0.1% of the value of the bar for its storage. The disadvantages of this option are only the presence of risks that are associated with the storage of investments in a credit institution.
You can save your precious metal in safe deposit boxes. This service is offered by commercial organizations. However, the minus of this option is the following: such companies are not fully responsible for what is in these cells.
You can keep gold bullion simply at home. But this option is not always safe. This is especially true when someone from outsiders knows about the acquisition.
The purchase of precious metal itself also has some nuances. Having picked up the yellow metal, you need to make sure that the stamp is present on the product. It contains information about the producer of the ingot and the sample of gold.
Precious metals can be purchased only in the largest banks in Russia. After all, smaller organizations do not provide such a service. Banks offer their customers bullion, the weight of which ranges from 1 g to 1 kg. Moreover, all of them are made of gold of the highest test - 999.95. An appropriate passport and certificate from the manufacturer must be attached to each product. The cashier's check that was knocked out during the purchase must contain the name of the metal and its sample, lot number and weight, the number of ingots, the total purchase price, as well as the date of the transaction. In order to make such investments, in addition to the necessary amount of money, a person will also need a passport.
You should also be aware that the specific cost of one gram of gold banks have the right to establish independently. That is why it may differ from the cost at which the ingots are sold by the Central Bank of Russia.It is worth considering the fact that, as a rule, gold, having the form of an ingot, costs 15-20% higher than the world price. A similar parameter also depends on the mass of the ingot. The more weight, the cheaper it is 1 g of precious metal.
Sale of bars
The one who made the investment in gold, Sberbank warns that the purchased bullion must be handled very carefully. The fact is that if there is even a slight scratch, the institution may either refuse to buy metal at all or significantly reduce its price.
So what are the pros and cons of such investments in gold? According to experienced experts, the sale of bullion becomes advisable only in cases where gold has risen 1.5 times since the moment of purchase. Such an expectation can last for a long period (from 1 to 3 years). Otherwise, the investment will not generate income and become unprofitable. To get more profit, you can also contact legally working jewelers and buyers. Most often, this option for the sale of ingots becomes the most profitable.
But it is prohibited by law to make such transactions between individuals. The product can only be gifted in exchange for some monetary gratitude. However, it is worth considering that such an operation is fraught with private risks. Here such have similar advantages and disadvantages to investments in gold.
Commemorative coin purchase
Such investments also have their positive and negative sides. It is worth noting the fact that the issuance of gift, commemorative and anniversary coins, as a rule, is made by Sberbank for various significant dates. For example, investments in gold in 2017 can be made by purchasing coins issued in honor of those cities that will receive participants in the World Cup in 2018. The cost of such a product is laid by the work of designers, the cost of minting and numismatic value. The minimum price of such a coin is within 6000 rubles. The release of such products is carried out in limited editions, the number of products in which rarely exceeds 1000 pieces.
What are the advantages of such an investment? Unlike the purchase of bullion, the acquisition of memorable moment does not include VAT. However, an ordinary citizen is unlikely to be able to determine the potential for increasing the cost of such products. That is why such investments in gold are attractive only to numismatists.
As for investment coins, they are minted using simplified technology. These products have a simple pattern and are produced in large quantities. In this regard, the cost of such a coin is as close as possible to the value of gold itself.
Sale of commemorative coins
In addition to private investors, jewelers often do not refuse such products. For them, commemorative coins serve as raw materials in the manufacture of precious products. You can sell coins at the bank. It takes 7 to 8 days. Buyers or just individuals will purchase them. It is not forbidden to buy similar products for pawnshops.
What investments include gold in the form of commemorative coins? Experts consider such purchases to be long-term investments. Selling coins shortly after purchase is unprofitable. Indeed, in addition to a small increase in the exchange rate of gold, profit will reduce the income tax on individuals.
Opening a depersonalized metal account
This investment is somewhat different from all previous ones. The fact is that when you open an impersonal metal account, a person does not become the owner of one or another physical form of a precious metal. At the same time, gold may even be completely absent from the bank's vaults. MHI is the acquisition of gold in anonymous form. In this case, the value of the metal is directly tied to its price in the world market. What are the advantages of such an investment? When closing the account, the bank undertakes to pay its depositor the amount of money that will correspond to the current rate of yellow metal.The depositor has the opportunity to pick up his investments in the form of an ingot. Only he will have to pay VAT (18% of the price of the product). Opening of the compulsory medical insurance can be made for the smallest amount equal to one gram of metal.
The main disadvantage of this option is the lack of a deposit insurance system. That is why experts recommend issuing mandatory medical insurance only at large banks.
Those who opted for this account should keep in mind that it is represented by two types:
1. Current, or on demand. When you open this account, interest is not charged. However, the owner can always sell precious metals based on the current rate of the bank. This will allow you to make a profit at any time.
2. Deposit. This account provides for the possibility of obtaining interest, and if it is necessary to close it, take the deposit in the form of gold bars.
How not to lose money in 2017?
Today, Russians have the question of the need to invest money remains as relevant as in previous years. After all, the crisis and the uncertain situation in the economy leave their immediate imprint on the standard of living of the population. How do investments in gold behave in this situation?
If in the first half of 2016 this precious metal grew well in price, then after it lost some of its position. Today, gold as a protective asset looks unattractive to many. Fluctuations in the range of 20-30% alarm investors. According to experts, investment in gold in 2017 can only be made if you forget about them for a period of 3 to 5 years. Otherwise, you will have to hand over the metal either at the purchase price or lower.
According to experts, in the near future the picture may change for the better. The inclusion of gold in the investment portfolio is expected from the second half of 2017.