Investing in gold provides stability and liquidity.
Investing in precious metals is a classic in a diversified portfolio. It acts as a refuge value in times of turbulence in the financial markets and provides stability and liquidity to investors gold ira company. These are the keys to investing well.
WHAT IS GOLD?
According to the dictionary of the Royal Academy of Language, it is a metallic chemical element, with atomic number 79, bright yellow, the most ductile and malleable of metals, a very good conductor of heat and electricity.
Its value comes from a unique combination of density, corrosion resistance and uniformity. Its symbol is Au, from the Latin aurum, which means bright dawn.
HOW TO INVEST IN GOLD?
There are different modalities that are adapted to the different profiles of savers and investors. A first option is through ETFs or gold derivative products. These are exchange-traded funds whose price will be linked to the evolution of the price of gold.
Another access route is investment funds. In this case, it must be taken into account that these products do not normally invest directly in gold, but in mining companies and companies related to the sector.
The third option is the purchase of physical gold bars and investment.
WHAT IS PHYSICAL INVESTMENT GOLD?
According to the Tax Agency, these are gold ingots or sheets of a law equal to or greater than 995 thousandths of more than two grams.
Gold coins that meet the following requirements also have this treatment: that they are of a law equal to or greater than 900 thousandths, that they have been minted after the year 1800, and that they are not or have not been legal tender in their country of origin.
In addition, these coins must usually be marketed for a price not exceeding 80% of the market value of the gold contained in them. Those that are in the Official Journal of the European Union are also included.
WHY INVEST IN PHYSICAL GOLD OR PRECIOUS METALS?
Gold has been and is money, and it is also the best vehicle for preserving value over time, and it has demonstrated this for the last 4,000 years. It will always be a source of liquidity and value wherever we are. One of its main characteristics is that it is convertible into any world currency.
Silver would be the little sister of gold, but with broader industrial applications.
The rest, platinum, palladium, rhodium, ruthenium… are rarer metals and are in demand by the industry, which gives them a more speculative nature, as well as a less favorable tax regime for the investor than that provided by gold.
ADVANTAGES AND DISADVANTAGES
One of the biggest advantages of precious metals compared to other products is that it is not an accounting entry, so they cannot suspend payments. We can always have them on hand. Its value is intrinsic.
Specifically, gold is a great refuge value against periods of uncertainty or destabilization of the markets. And it is also a valuable tool to diversify assets.
Just as we have a financial portfolio or one or more properties, gold should be one more basket in the distribution of our assets. It has immediate liquidity and we will always have a buyer. In addition, it is listed 24 hours a day from Monday to Friday, so we will always know its value.
THE OBJECTIVES
They are very varied: security, diversification, protection against inflation, safeguarding our purchasing power, liquidity regardless of market circumstances, decorrelation… In short, insurance for the rest of our investments.
SPECIAL REGIME
It consists in that all physical gold that falls within the characteristics explained above can qualify for the exemption from paying VAT.
HOW DO YOU BUY PHYSICAL GOLD?
In person at a specialized and accredited establishment, or over the Internet.
Purchases can be picked up at the establishment or we can receive them at our home with an insured shipment. The form of payment is limited by law to 2,500 euros in cash and from there it must be made by transfer or bank means.
DO YOU HAVE TO IDENTIFY YOURSELF?
Yes, when it is bought and when it is sold, according to current regulations.
HOW IS IT TAXED?
The taxation of investment gold, at the time of purchase, is exempt from VAT, unlike the rest of precious metals that are taxed with VAT.
At the time of selling, the difference between the sale and acquisition price would be taken to the capital gains and losses section in the savings base. That is, the same as any listed stock.
WHEN IS IT BETTER TO INVEST IN PHYSICAL INVESTMENT GOLD?
It is always a good time to buy gold, since recurring purchases over time prorate the price. However, it is best to do it in times of prosperity and growth and calm in the markets. To be protected, we have to have the umbrella before it starts to rain.
HOW DO POLITICAL SITUATIONS AFFECT GOLD?
Whenever there is uncertainty, investors tend to take refuge or increase their investments in gold.