Investing in precious metals is a classic in a diversified portfolio. It acts as a safe-haven in times of turbulence in the financial markets and provides stability and liquidity to investors. These are the keys to invest well investing in cryptocurrency.
WHAT IS GOLD?
According to the dictionary of the Royal Academy of Language, it is a metallic chemical element, atomic number 79, bright yellow in color, 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 derivatives. These are listed funds whose price will be linked to the evolution of the price of gold.
Another way of access is investment funds. In this case, it should be borne in mind 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 bullion and physical investment gold.
WHAT IS PHYSICAL INVESTMENT GOLD?
According to the Tax Agency, these are gold bars or sheets of gold equal to or greater than 995 thousandths of more than two grams.
Gold coins that meet the following requirements also have this treatment: they are of law equal to or greater than 900 thousandths, they were minted after 1800, and they are not or have been legal tender in their country of origin.
Furthermore, these coins must be regularly traded for a price not exceeding 80% of the market value of the gold contained in them. Those included 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 this has been demonstrated 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 scarcer metals and demanded by the industry, which gives them a more speculative character, in addition to a less favorable tax regime for investors than that provided by gold.
ADVANTAGES AND DISADVANTAGES
One of the biggest advantages of precious metals over other products is that it is not an accounting entry, so they cannot suspend payments. We can always have them at hand. Its value is intrinsic.
Specifically, gold is a great safe haven against periods of uncertainty or market destabilization. And it is also a valuable tool for diversifying wealth.
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 trades 24 hours a day from Monday to Friday, so we will always know its value.
They are very varied: security, diversification, protection against inflation, safeguarding our purchasing power, liquidity regardless of the circumstances of the markets, de-correlation ... In short, and insurance for the rest of our investments.
It consists in that all physical gold that falls within the characteristics explained above can qualify for the exemption from paying VAT.
HOW IS PHYSICAL GOLD PURCHASED?
In person at a specialized and accredited establishment, or via the Internet.
Purchases can be picked up at the establishment or we can receive them at our address with insured shipping. The form of payment is limited by law to 2,500 euros in cash and from there it must be made by bank transfer or means.
DO YOU HAVE TO IDENTIFY YOURSELF?
Yes, when you buy and when you sell, according to current regulations.
HOW IS IT TAXED?
The taxation of investment gold, at the time of purchase, is exempt from VAT, unlike other 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 our price. However, it is best to do it in times of prosperity and growth and tranquility 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.