Conservative investors prefer to invest in gold because of small risks and the possibility of making good money over the years. This is especially true today, when forecasts of a noticeable increase in the price of precious metals are increasingly appearing. It is also important that investing in yellow metal is possible for almost anyone today. You just need to have enough money for this.
The choice falls on gold
It is believed that gold cannot be completely devalued. It is not for nothing that countries with a high level of economic development have their gold reserves. A novice investor should not be afraid for his capital if he invested it in yellow metal. You just need to know that investing in gold must be long-term for profit.
Practice has shown that metal is constantly becoming more expensive in the future. You cannot do without periods of recession, since this is a market, which means that quotes are prone to sharp fluctuations. In most cases, you can’t even roughly predict the price movement. However, even after significant landslides (for example, about 20% in 1-2 weeks), there is a steady recovery of positions and growth. This is not an axiom, but historically it has always been so.
Citibank experts believe that during 2020-2021 the metal will confidently go up in price, up to updating its historical maximum – over $ 2,000 per ounce. That is, the forecast is that the precious metal will rise in price by about 30%.
Such opinions have a basis. The central banks of leading countries have begun to systematically reduce key refinancing rates. And there is a possibility that then regulators will launch monetary stimulus programs by launching a machine tool and saturating the economy with unsecured currency.
There is no talk of increasing gold production yet. Therefore, the metal will be even more profitable to look against the background of unsecured money. Simply put, if the money supply is growing, then for reinsurance it is better to invest part of the money in yellow metal. Even if you can’t make a lot of money from it, such a diversification of harm should not bring harm.
It is noted that states are actively converting assets into gold bullion, seeing this as more reliability. Especially against the backdrop of a trade war between China and the United States. Last year alone, the world’s central banks increased their reserves by 650 tons, which was not there for almost 50 years. The most actively growing gold reserves are Russia, China and India. What can we say about private investors.
How to invest in gold
It’s worth saying right away that buying a gold ring / necklace / chain is not an investment. In most cases, jewelry is not made of pure metal. The price includes the work of a jeweler, tax, seller’s margin. So also part of the products in general is a fake. Therefore, you should definitely not buy jewelry. Even if gold becomes very noticeably more expensive, it is still impossible to sell a profitable product.
A similar situation with gold coins. This is more profitable, but you still need to know which coin to buy. They are expensive not only because of the gold content, but also due to the collection value. It will be a shame if a novice investor buys gold coins from a bank, and then cannot sell them profitably. Investing in coins is only suitable for numismatists.
Therefore, it is recommended to buy bullion, or open “gold” bank accounts. Ingots are sold in many large banks. Moreover, the minimum weight is 1 gram, that is, for the deposit will require very little money. Although you should know that the larger the mass of the ingot, the smaller the spread. And is it important.
The fact is that you will need to recapture your costs. Spread – the difference between the purchase and sale price of metal. A bank always sells gold at a higher price than it actually stands on the market. And vice versa: the precious metal bank buys cheaper than its real value. Therefore, the minimum spread only plays into the hands of the investor.
For example, an ingot weighing one gram can cost 5,000 p. (conditional price). And the cost of an ingot weighing 1 kilogram will be about 4,000,000 rubles. However, if you take the price for 1 gram in the second case, then it will be 4 thousand rubles, not 5.
It can not but rejoice that the president signed the law, according to which the tax is abolished when buying an ingot. Therefore, the investor will only have to take care of the careful storage of the precious metal (the ingot itself, packaging, certificate, etc.). It is recommended to rent a cell in the same bank where the ingot was purchased. This greatly simplifies the process of selling gold back to the bank in the future.
Although there is no tax when buying, there is a relatively high spread. Therefore, it is unlikely that an investor will be able to turn gold into a speculative asset, unless, of course, there is a lightning growth in quotations. If you want to invest money for a short period of time to earn money, then you can open a DMA – an depersonalized account.
It’s simple: I opened a bank account, deposited a certain amount, which is converted into metal at the current rate taking into account the spread. As a result, such “paper” gold will be listed on the MLA of the investor. That is, the buyer does not receive precious metals.
There will be no problems with the sale of the asset. The investor simply performs the reverse operation, changing the “gold” on the balance sheet to the currency. Then he can withdraw money from the account. Here you already need to remember about the possible tax on income after the sale of metal with DMA.