Features of investment in gold bars
Investing in gold for the purpose of preserving it and generating income can bring both profit and loss. The maximum possible income with minimal investment is possible only if the investor has at least minimal knowledge in this area.
The purest gold is extracted from ore deposits, which are far from common. Most of the gold deposits are already known and are being successfully developed. Mining of precious metals is associated with high time and labor costs, and problems also arise due to the complex location of deposits.
If you have some savings, buying gold bars is a great option to save them and even multiply them. The value of banknotes invested in precious metals will not lose its purchasing power, in addition, it does not depend on inflation. The cost of gold has only increased over the centuries, which is primarily due to the growing costs of mining this metal.
Should I buy gold bars?
You can buy precious metal in bullion at banking institutions that have received a special license to conduct these operations. Gold bars purchased from banks are an alloy of 999.95 samples with mandatory marking. Each gold bar must have documents confirming the authenticity and purchase.
How to buy a gold bar? The procedure is a process of weighing and issuing a certificate. To do this, the buyer must present a passport. Investment in bullion is a guarantee of high liquidity and protection against inflation, especially in times of economic crises.
The disadvantages of this option of investing money include possible difficulties with the sale. Banking structures are reluctant to buy gold bullion. This process is accompanied by a thorough check of documents, certificates and receipts, as well as appearance and safety. Even the presence of small scratches on the ingot can be the reason that you will be refused to buy.
Therefore, before you buy a gold bar for investment, you should think about how you will store it. A full guarantee of security and preservation of external signs is given only by a bank cell, it can be rented for a certain fee. The cost of the cell minimizes the investment benefits.
Now in European countries, such an option for saving bullion is gaining popularity, as storage on deposits of companies intended to protect the gold reserve of central banks and large holdings. But in this case, you must purchase a large amount of gold, this option is not suitable for small buyers.
Investors also have the opportunity to store gold bars in custody companies when buying gold bars. Now there are suppliers who offer to store precious metals in such companies through them, while preserving their property. Such companies are fully responsible for the safety of your bullion.
Some providers offer this way to anyone who wants to buy gold in any quantities from 1 gram, assign them a small part of the bullion stored on deposits. The ingot is divided among any number of owners into indivisible shares.
To build long-term gold wealth, this may be the best solution for your investment portfolio.
When selling bullion, you need to take into account the high spread, banks usually give about 20 percent less than the market price.
It is as profitable as possible to buy gold abroad, bullion is not taxed, and the spread on the sale will be less. In this case, it will be necessary to specify the permissible customs limits in advance in order not to pay an additional fee.
Is it profitable to buy gold bars?
In the seventies of the last century, the gold standard was abolished. Further, all settlement operations began to be carried out in paper currency units, the quotes of which depended on supply and demand in the market. This led to economic growth, but there were also some problems. The economy became cyclical, with periodic crises. Given these points, investors bought gold in the hope of a return to the standard. Therefore, now market participants around the world perceive the precious metal as a benchmark of currency value, which strengthens its further positions.
It is clear that gold may fall in price. It all depends on when you started investing in this metal. In the long run, the value of gold bars has always been rising.
Monetary reforms and inflation do not affect the change in the value of gold. Unlike other financial products, gold is only available in limited quantities and cannot be printed as money at will.
Investing in gold guarantees short-term liquidity, which is why it is highly valued in case of investment portfolio optimization. That is why investors who choose long-term instruments invest in precious metals, especially gold, as its price is higher than the rest. In addition, physical gold is not taxed, as it is considered a currency.
Buying gold bars is a reliable way to build up physical gold reserves for many countries.
How to buy gold bars?
Anyone who thinks about whether it is possible to buy gold bars, has the right to buy any number of bars. Now it is possible to purchase ingots weighing from one gram to one kg. Technical parameters and standards are strictly controlled by the state.
Each must contain marks about the weight, sample, and metal itself. You must also have the manufacturer’s signature print and a unique product number. It is by this number that you can control any ingot from the moment of its manufacture to further processing.
Can I buy a gold bar without documents? This is a question that many investors are interested in. To date, the state has established mandatory rules for the purchase and sale of gold bars:
- all processes must be carried out only in the presence of the seller and the buyer, the sale of gold bullion via the Internet is prosecuted by law;
- weigh the bars with an accuracy of 0.01 grams, during the weighing process, the scales should be in full view of the buyer;
- each bar is accompanied by a unique certificate that guarantees the origin of gold.This document specifies the number of the ingot, its weight, sample, date of production, name of the manufacturing plant;
- all transactions involving precious metals, including gold bars, must be accompanied by mandatory cash documents.They should contain information about the metal itself, its weight, purity, number, cost, total number of bars, etc.
Novice investors are thinking about whether to buy gold in a bank? It is in the bank that experts recommend buying bullion. Advantages of buying gold in a bank:
- authenticity of the metal, its weight and sample is guaranteed;
- the purchase and sale transaction is carried out safely and with a guarantee;
- the buyer receives a manufacturer’s certificate, as well as all cash documents confirming the purchase.
Many people in the pursuit of savings buy gold bars from a private seller. However, such a transaction may be accompanied by some unpleasant moments:
- the authenticity of the metal is almost impossible to check, there are well-made fakes.;
- the seller usually does not have a certificate of authenticity, which is a violation of the rules for selling gold bars;
- no cash receipts confirming the purchase;
- the opportunity to lose money by running into scammers.
What gold bars are best to buy, where to buy them, and how to store them, everyone decides for himself. But this type of investment is now very popular due to its numerous advantages:
- investing in a tool that has saved people money for thousands of years;
- it is possible to purchase any amount of metal;
- you can store such assets for many years without losing their quality and appearance;
- in crisis situations, gold can show high returns.
However, experts recommend this type of investment for the long term and in the case when there are free funds that you do not plan to use in the near future.