The richest people on the planet, banks, as well as the leaders of multinational corporations invest in gold. Moreover, this trend has been observed for several centuries. Despite the fact that the contribution to gold is considered a privilege of the powerful, mere mortals can also try to invest their money in this type of investment.
The oldest type of investment
The history of deposits in gold totals about 3-4 thousand years. After all, objects from this metal were found by archaeologists in the tombs of the Egyptian pharaohs, as well as in the territories of European cities. It has always been beneficial for people to keep their savings in gold equivalent. Material objects could lose their value over time, but this never happened with gold.
Why do deposits in gold have such a long history? This metal is valued because it has always been difficult to mine. In natural sources you can find a very small amount. In addition, gold does not enter into any chemical interactions with other substances. It is very well stored, and its appearance does not deteriorate. Gold is also a very soft metal - it is easy to mint and cast.
In the second half of the XIX century, many countries decided to abandon the gold security of their currencies. In those days, investor interest in this metal became much lower. However, when the global economic crisis of 2000 came, society remembered the existence of an effective and safe method of capital appreciation. The most prudent investors began making contributions to gold at the start of the new millennium.
Modern gold market
Today, the market for this precious metal is largely dependent on external factors. These are the following conditions:
- Jumps in commodity prices.
- Conflicts in the political arena.
- The introduction of new legislation.
- Economic crises in the territories of different countries.
- Psychology and consumer behavior.
Many economists are convinced that the rise in prices for this precious metal, which entailed an increase in deposits in gold, was caused artificially. By the beginning of 2014, the total volume of gold reserves worldwide exceeded 180 thousand tons. About 44% of them accounted for jewelry industry products; 20% belonged to state central banks, as well as international financial companies; 23% to investment savings; the remaining 13% came from electronics and dentistry.
It is believed that over time, the share of investments in this precious metal will only accumulate. For example, in 2014, the United States Mint recorded a significant increase in demand for gold coins.
How to invest in gold?
There are only four ways to profit from investing in this precious metal. This is the acquisition of gold coins or bars; purchase of expensive jewelry; opening a depersonalized metal account in a bank; as well as trading in precious metals on exchanges. The very first thing that comes to the mind of a novice investor is the purchase of jewelry, because this is how the contribution takes on a material form, you can admire it, touch it.
Purchase
Gold coins are always bought at banks that have a special license for these operations. At the same time, each bullion has its face value, number, manufacturer’s label, and a certificate of conformity to quality. The minimum price of a gram of gold is about 500 rubles.In order to find out the exact value at the current moment, you need to clarify the current discount price for the Central Bank, and then multiply it by a factor (0.375, 0.585, etc.).
The price of a gold bar always corresponds to its weight, and the precious metal content in it is equal to 99.99%. However, one of the significant drawbacks of such deposits is the need to pay VAT, which is 18% in Russia and 20% in Ukraine.
Are deposits profitable?
Deposits in gold will be of interest to experienced investors who understand the characteristics of the dynamics of this market, the motivation for its purchase and sale. With the help of such deposits, they can diversify their financial risks by earning on another type of deposit. At the same time, investors should remember that precious metals are inversely correlated with the value of the dollar. Interest on deposits in gold on such deposits is not provided for in Russia, and profitability is provided by rising prices for precious metals in the country.
List of documents
In order to open a deposit, the investor must have the following package of documents:
- Passport or identity document.
- Certificate from the tax office on tax registration.
- Application for opening a deposit, completed in accordance with the standards.
- Investment Agreement.
- A written order that the precious metal has been accepted for storage.
Contributions to Gold: Pros and Cons
Investing in this precious metal has the following advantages:
- With increasing gold prices, investment capital is growing.
- A deposit can be opened for almost any amount.
- Upon termination of cooperation with the bank, it is possible to receive gold instead of money - in contrast, for example, from foreign currency deposits in which such an opportunity is not provided.
- The investor is free to manage his money, transfer it from one account to another, replenish the deposit, withdraw cash.
- One of the main advantages is that the profit on the deposit is not taxable.
- On an impersonal account, you can carry out any speculative operations.
The disadvantages, as a rule, include the following:
- No accrual of interest on the deposit.
- Banks do not provide insurance for such investments.
- For ongoing operations on deposit, interest must be paid.
- At the time of withdrawing funds, the investor will have to pay the bank current expenses.
Benefits of MHI
One of the most profitable deposits in gold offered by Sberbank is the opening of an anonymized metal account (OMS). This term means the same as "gold contribution". Its meaning is as follows: in the future you can deposit funds into a bank account that will be converted into grams of precious metal at the corresponding exchange rate of the bank. The investor makes a profit, which will be presented in the form of the net value of gold for a given period of time. Also, a small percentage of annuals is charged (usually it is from 0.5 to 3%). This option will be convenient for those investors who are used to dealing with ordinary cash. An additional advantage of compulsory medical insurance is the absence of the need to pay VAT. Thus, an impersonal metal account is the most profitable contribution to gold. Anyone can open such a contribution. However, practice shows that this is best done for those who already have knowledge in the field of investment.
Features of metal accounts
However, it is necessary to pay attention to some features. Firstly, there should be a technical opportunity to open compulsory medical insurance in a particular bank branch - there should be special measuring equipment in the branch. Secondly, such deposits do not fall under the insurance law. Thirdly, the investor must pay personal income tax on their own.
It should also be borne in mind that if a deposit is supposed to buy a precious metal, the investor will have to pay the bank's expenses for its storage. These are the main features of the contribution to gold at Sberbank. The rate at which interest is accrued needs to be clarified - quotes in the Central Bank change every day. Even if the price of the precious metal began to decline, experienced investors do not consider this a cause for panic. This is not a reason to make hasty decisions. The price of a gram of gold depends on the influence of many factors: the uncertainty of the exchange rate of the American currency, jumps in oil prices, various natural disasters, as well as the notorious economic crisis. Also, an increase in the money supply, inflation, may affect the price increase.
Investor Reviews
Most of the reviews about the contribution to Sberbank's gold indicate that this type of investment is the most reliable. Here is what the bank’s clients write: Compulsory medical insurance is a great way to save money for the future, even in a short time you can get good profit if the price of a precious metal starts to rise. They argue that such a contribution is very beneficial in terms of stability. The price of gold does not change dramatically. These attachments are protected as much as possible from any surprises. Many believe that deposits in the precious metal are the most profitable, in contrast to the currency, which are subject to constant influences of quotations.