Investing in gold provides stability and liquidity.
Investing in precious metals is a classic in a diversified portfolio gold ira. It acts as a safe haven in times of turmoil in the financial markets and provides stability and liquidity to investors. 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 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 derivative products. These are traded funds whose price will be linked to the evolution of the price of gold.
It can be purchased through ETFs, mutual funds or by acquiring physical 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 rather 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 a grade equal to or greater than 995 thousandths of more than two grams.
Gold coins that meet the following requirements also have this treatment: that are of a grade equal to or greater than 900 thousandths, that have been minted after the year 1800, and that are not or have been legal tender in their country of origin. Source.
In addition, these coins must usually be traded for a price not exceeding 80% of the market value of the gold contained in them. Those that are within 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 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 metals that are scarcer and demanded by the industry, which gives them a more speculative character, as well as a less favorable tax regime for investors than that provided by gold.
ADVANTAGES AND DISADVANTAGES
One of the greatest 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 on hand. Its value is intrinsic.
Specifically, gold is a great safe haven against periods of uncertainty or destabilization of the markets. 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 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, de-correlation … In short, and insurance for the rest of our investments.
SPECIAL REGIME
It consists in that all physical gold that falls within the characteristics explained above can be exempted from paying VAT.
HOW DO YOU BUY PHYSICAL GOLD?
In person at a specialized and accredited establishment, or through the Internet.
Purchases can be collected at the establishment or we can receive them at our address with an insured shipment. The form of payment is limited by law to 2,500 euros in cash and from there it must be done by bank transfer or means.
DO YOU HAVE TO IDENTIFY YOURSELF?
Yes, when it is bought and when it is sold, according to current regulations.
HOW DO YOU PAY?
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.
Unlike other precious metals, the purchase of gold is exempt from paying VAT
At the time of selling, the difference between the sale and acquisition price would be taken to the section of capital gains and losses on the basis of savings. 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 bonanza and growth and tranquility in the markets. To be protected, we have to have an 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.