Gold has been considered a precious metal for centuries . It is used not only to create unique jewelry, but also to increase capital. In many ancient countries, gold coins were used as money. And the rulers of the most economically developed countries even today prefer to invest in gold. A simple citizen who has little knowledge of the economy will be able to create his reliable investment portfolio.
Historical facts
The history of the relationship between humanity and gold began many millennia ago. The exact date of discovery of the precious metal can not be called. Historians still argue on this topic. Gold has long been valued for its unique properties. It is not oxidized and can be stored for a long time. Some of the gold jewelry that is kept in museums today is more than 2000 years old. Gold in nature is extremely small, and in order to mine it, considerable financial costs are required.
People have invested in gold since its discovery. But the real investment boom began after 2000. People remembered that precious metal is actually a reliable asset. Gold never drops in value. This means that by investing in a precious metal, you can not only save your finances, but also increase them. Attentive investors who purchased gold in 2000 can sell it at a much higher price today. Over 10 years, a
troy ounce has risen in price by 560%.
Modern gold market
Investing in a precious metal has always been profitable. But before you invest in gold, you should consider a number of factors. The price of a precious metal may depend on the general state of the market at a certain point. Therefore, building your investment portfolio on gold alone is impractical. There is a risk of losing your money.
Before deciding whether to invest in gold, it is worth examining the international situation. The cost of a troy ounce can be affected by international political conflicts, legislative projects related to the purchase and sale of precious metals, the state of the economy, the level of gold reserves of the national bank, etc.
A huge increase in gold prices was observed in 2011. Most experts believe that such a leap was created artificially. Panic and excitement did their job. Small investors began to buy up precious metal in huge quantities. By 2014, the global stock of precious metal broke all records. Today, this figure exceeds 180 thousand tons. Almost half of all these stocks are jewelry. Investment savings account for only 23%.
Many investors today are in a hurry to invest in gold. Reviews show that in this way you can really earn. But it is a long-term financial instrument. Do not wait for profits in the first few months of investing.
How to invest in gold?
There are several ways to invest in precious metal. It is possible to purchase gold bullion and coins at the bank, buy original jewelry or antiques, open an anonymized metal account in a financial institution, and start trading on the exchange using the services of a broker.
Buying, according to many, is the most rational way to invest in gold. Investor reviews show that physical contact with a precious metal (when you can see it, hold it in your hands) gives you more confidence in tomorrow. Although this method of investing cannot be called the most profitable.
Gold bars and coins
For those who do not know how to invest in gold, Sberbank offers to purchase gold bars or coins. The financial institution has an appropriate license to conduct operations related to precious metals. Each gold bar has a mark that means specific gravity. The bank offers gold bullion weighing from 1 gram to 1 kilogram. You can also find out information about the manufacturer, see the quality certificate.
Before you invest in gold, Sberbank offers to familiarize yourself with the terms of the contract. It stipulates the cost of the ingot, its weight, as well as the sample. The precious metal offered by financial institutions is 99% gold.
It is also profitable to invest in gold using coins. They are of two types - investment and collection. The second type is of historical value and can be used to preserve capital. Collectible coins are quite expensive. Evaluation can only be done by a true professional. It is much easier and faster to purchase investment gold coins.
Jewelry investment
Even those investors who are poorly versed in economics and financial transactions know how to invest in gold. One has only to buy an original piece of jewelry. This is the easiest and most affordable way to invest. It is enough to choose a jewelry and pay it at the cash desk of the store. There is no need to conclude an agreement, fill out declarations, etc.
Investing in jewelry also has a number of disadvantages. After the product leaves the store counter, it falls in price by 25-35%. It will be impossible to realize it at primary cost. In addition, for the manufacture of jewelry almost never use pure gold. On most products that are presented in domestic jewelry stores, there is the 585th test. This means that the metal contains only 58.5% of gold. Before you invest in gold of this quality, it is worth considering several times. Perhaps it makes sense to contact the bank?
Anonymous Bank Accounts
This is a regular account that can be opened at a financial institution. The only difference is that it stores grams or kilograms of gold, not money. Many do not know how to invest in gold in a bank and not overpay at the same time. The fact is that the physical purchase of a precious metal at the time of conclusion of the contract does not occur. This means that the transaction is not taxed. Money is simply deposited to a specific account. At the same time, currency is converted at the selling rate for a certain day.
It is possible to open an urgent metal deposit. In this case, the yield will be even higher. The investor will be able to earn through rising gold prices in the domestic market, as well as receive interest on his contribution.
Opening a depersonalized metal bank account has some nuances. The conclusion of the contract does not require any financial costs. But if the investor wants to get the deposit amount in gold, some expenses will appear. First of all, it will be necessary to pay 18% VAT of the deposit amount. In addition, you will need to double-check the dimension of the ingot. And this procedure is also not free.
Which investment method is more profitable?
Every novice investor sooner or later asks the question of how to invest money in gold is most profitable. It all depends on the expected result. If you just need to save your capital, then the physical purchase of gold is quite suitable. But here, it is better to give preference to bank bullion and coins. In this way, money can be saved much longer.
For those who want to earn money on gold, it makes sense to think about an impersonal metal bank account. The main risks associated with the storage and maintenance of the precious metal remain with the financial institution. The investor will receive a guaranteed profit. It will be much more if you conclude an agreement with the bank for a long time.
Which bank to trust capital?
For those who do not know how to invest in gold, VTB 24, Sberbank, as well as Alfa Bank offer the most favorable conditions. These financial institutions occupy leading positions in the domestic market. Sberbank, for example, has been working with depersonalized metal accounts since 2002. During this time, many investors managed to use the services of a financial institution. Some even managed to double their capital. The bank works both with accounts and with physical gold.
The operating conditions of Alfa-Bank and VTB 24 are very similar to each other. These financial institutions have far fewer branches in the country than Sberbank. But problems, as a rule, do not arise. Even for small investors, information is provided on how to invest in gold. Alfa-Bank offers a physical purchase of a precious metal or opening an account from 1 gram.
Trading through brokers
Investors versed in the economy are in no hurry to bring money to the bank. You can trade gold on the exchange. This is the most difficult and at the same time profitable investment option. It is not enough to have only initial capital. You need to know the nuances of trading on the exchange, to understand the terms and financial instruments. At the same time, a decent income can be obtained not only at the time of rising prices for the precious metal. A competent broker will be able to earn on the fall in the cost of a troy ounce.
Only a truly experienced investor can trade gold in the market. There is a huge risk of completely losing your capital.
Is it worth investing in gold?
About 50% of all transactions related to gold are made when an economic crisis begins in the state. This is due to the fact that the precious metal is one of the most stable investment tools. At the same time, the price of an ounce never stands still. Gold at one point can grow in price by 15% or cheaper even more.
Investing in precious metal is best for the long term. It’s worth for 5-7 years to forget about your investment portfolio. In this case, its profitability will really be high.