Buy or trade gold: Big guide - 4 options
Whenever there is talk of stable means of payment that are also supposed to be crisis-proof, the topic of gold comes up very quickly in many discussions. It is true that gold is also subject to fluctuations - but in times of crisis, gold usually increases in value quickly, because people are then looking for a safe haven and want to buy gold. [...]
If financial experts are to be believed, we are currently heading for the next crisis. Indicators of this are a weakening global economy, geopolitical crises (China - USA) and economic sectors burdened by climate concerns (e.g. the German automotive industry).
In recent months, more people have been looking to buy gold than at any time for many years. Also from a Explosion of the correlated silver price is the talk.
We have therefore prepared a comprehensive guide to clarify all open questions and provide the best tips on the subject. This is how it works: Buy gold.
Content
What is gold?
First things first: What is gold actually about?
Along with silver, gold is one of the most popular precious metals among investors. Gold has been produced for thousands of years for the manufacture of jewelry and means of payment.
The precious metal has always been regarded as a means of payment - but today it is primarily an investment.
Since gold is limited by nature, it has always had a very high value. Compared to other metals, it is also very difficult to obtain large quantities of gold. Gold deposits are rather scarce worldwide. With other methods (such as gold panning) you can only get comparatively small amounts of gold.
It should also be mentioned that gold does not rust. It is generally very robust and is not easily dissolved by chemical processes, as is the case with other metals.
Since gold is an excellent conductor of electromagnetic pulses, gold is used in microchips and fine electronics.
Buy gold: Why is gold so popular in the first place?
While gold used to be so popular mainly because of its shiny and precious surface, today it is due to its stable value.
There are constant ups and downs in the economy.
Good economic times are always followed - sometimes sooner, sometimes later - by a recession. The value of many currencies collapses and share bubbles burst.
This is precisely when people are looking for safe investment opportunities. In other words, options to secure their own assets.
What could be more suitable than gold: the precious metal has often proven in the past that it retains its value in the long term. In the short term, however, it can very well fluctuate.
Who determines the price of gold?
As with other things, the price of gold is determined by the market.
The London Bullion Market has been responsible for this for several centuries. There are several meetings here at which the gold price is regularly fixed (gold fixing).
The prices of other important trading values - e.g. oil or the US dollar - have a major influence on the price of gold.
It should also be remembered that around 20% of the total amount of gold in the world is held by national banks. This gives the national banks (e.g. the ECB) the opportunity to exert a direct influence on the gold price.
Buy gold as Lifeboat?
Can gold be seen as protection against a crash?
It is very difficult to predict what will happen in the event of a crash. What is certain is that many people will lose their jobs and you will suddenly find yourself in front of closed banks.
Venezuela, for example, has been experiencing hyperinflation since 2013. In 2016, the inflation rate was already 800%, in 2018 it was a staggering 80,000%. The population began to trade in other currencies as the Venezuelan currency lost more and more of its value.
If such a financial crash were to occur on a global scale, more and more people would turn to tangible assets - and that includes gold.
The thesis that gold is crisis-proof is supported by the fact that it is limited by nature. It is therefore very unlikely that the price of gold will suddenly plummet. But of course it is not impossible. Between 1980 and 2000, the price of gold also fell sharply.
The fact is that the price of gold rises in times of crisis. However, everyone must decide for themselves whether it is worth investing in gold now.
4 possibilities of the Gold purchase
1. Gold bars buy
Gold bars can be purchased safely and easily from one of the many providers.
You can either go to a physical store (there are a lot of them in Austria and especially Vienna) or you can order online.
Delivery times are within acceptable limits - especially if the gold bar is shipped directly from Austria or Germany.
It is interesting to note that gold bars are tax exempt. If they have a weight accepted in the gold market and the gold fineness is 99.5% or more, there is no VAT.
When buying gold bars, it is important that the price corresponds to the current gold price and that the seller does not add too much "sales commission". In addition, you can buy gold in Austria completely anonymously up to a price of €10,000.
Recommended dealers:
2. Bullion coins buy
Investment coins" are special gold coins that have to fulfill certain requirements.
Bullion coins must have a fineness of at least 900/1000 and must have been minted after the year 1800.
The Krugerrand gold coin is one of the most popular bullion coins. It is minted in South Africa and is particularly suitable for beginners.
Other recommended bullion coins are the Maple Leaf from Canada and the Kangaroo gold coin from Australia.
If you would like to have an Austrian gold coin, the Vienna Philharmonic Orchestra.
3. Mining Stocks
If you want to profit from the gold rush without owning your own gold pieces, you can invest in one of the many mining stocks.
These are shares that belong to specific mining companies.
The largest mining stocks are:
- Newmont Goldcorp
- Barrick Gold
- Freeport McMoRan
Gold mining companies benefit from economic downturns because then their main product (gold) increases in value. Nowadays, gold miners are no longer individuals, but large companies that search for gold with huge machines and take full advantage of their rights to dig for gold.
However, before buying shares in a mining company, you should find out more about its other areas of business.
4. buy gold via Securities
Although we have already mentioned above that gold is not very suitable for speculation, gold securities are used for precisely this purpose.
They can be bought and sold quickly and are thus more flexible than classic gold bars.
Gold securities therefore make sense if you don't want to hold the position for years and need flexibility. Securities are also suitable for people who Work from anywhere want to be able to access their Depot can access.
Where can I store my gold?
Ok: The first gold bar or coin is bought. Where can I store it now without having to worry about it?
If you want to store your gold away from home, you can do so in any conventional safe deposit box. Banks are usually very well secured and safe deposit boxes offer a high level of security.
If you don't trust the whole thing, you can of course store the gold at home.
At home, the gold should be stored in a safe. Safes are either so heavy that they can not be taken (over 600 kg) or you attach the safe to the wall.
Another safe option are hiding places in the house that you only know about yourself. However, these should really not be conventional hiding places, but rather places that are not immediately obvious to a thief.
Conclusion: Buy gold
This guide has provided a good overview of why gold is so popular, who determines the price of gold and how you can invest in gold yourself.
Gold is an investment medium with stable value, and we expect it to remain so in the future.
If the crash and crisis prophets are to be believed, tangible assets will be much more important in the 2020s than currencies or securities. Of course, we cannot predict exactly what will happen.
If you want to be on the safe side, buy gold in physical form and store it either at home or in a safe deposit box.
