A sense of SEcurity and portfolio diversification inspire gold purchases
In the context of the current economic situation, buying gold is becoming a focus for increasing numbers of investors. Most investors are looking for the safety characteristics of the precious metal. This is why gold is often purchased as goldbars and gold coins. As an additional portfolio instrument, gold is preferred for its long term value maintenance as well as its liquidity and fungibility. Buying gold is simple and fast and later sales are unproblematic due to the high standardisation of gold bars and coins.Buying gold is of particular interest as protection against crises and inflation.
When deciding to buy gold, one of the first questions is whether it is best to buy bars or coins. It is impossible to provide a general answer to this. Whether it is better to buy gold coins or gold bars is a question of personal preference.
Buying physical gold as gold bars with a low surcharge
Gold bars available in a variety of sizes. Buying gold in this format is possible from 1 gramme. Investors generally prefer gold bars up to a size of 1,000 grammes, the so-called kilobars. Larger sizes, such as the 12.5 kg gold bars are of particular interest to institutional investors and central banks. Generally, the price for gold bars is very close to the spot price for the troy ounce on global money markets. There are low surcharges due to manufacturing and transport costs. Generally, one can say that the surcharges for smaller gold bars are proportionately higher and therefore deviate more significantly from the pure gold price than for big gold bars. Therefore, it is necessary to check the minimum size of a gold bar worth investing in. The most well-known gold bar is surely the troy ounce. They weigh 31.1035 grammes and are therefore the exact weight quoted as the gold price on the commodities markets.
GOLD COINS are not only for collectors
When buying gold coins, there is a somewhat higher surcharge on the spot price in comparison to gold bars. In particular, this is due to the more elaborate minting process. However, this means that gold coins can be easily recognised and checked for authenticity. The benefits lie with the ease of cashing in and contingency planning.
The South African Krugerrand is the most well-known investment coin. This gold coin has been minted since 1967 and has been issued using a uniform design ever since. Some of the other gold coins, such as the Nugget (Kangaroo) have experienced changes in design. Other investment coins change their designs annually. This also appeals to investors with a pronounced passion for collecting, animating them to regular gold purchases due to the varying designs. Here, the gold content of the coin is relevant. For investment coins, the standard size is one troy ounce. Most investment coins possess a purity of 999.9 (fine gold) or 22 carats. The Krugerrand possesses an additional copper alloy which gives it its typical colour. The fine content of this gold coin is only 916.6 or 22 carats. As the Krugerrand still contains a troy ounce of gold, the total weight per coin is 33.9305 grammes.
Tax aspects for gold purchases
In Germany, in contrast to buying silver, platinum and palladium, buying gold is VAT-free. Furthermore, capital gains tax is not applicable to gold purchases. Gold bars and gold coins can be sold tax free after a holding period of 12 months. If there are at least twelve months between purchase and sale, then profits from transactions with gold bars and coins are tax-free. If however the gold is sold within a year following purchase, then the arising profits will be subject to income tax.
Buying gold at Ophirum is easy, secure and fast. After ordering to your house or a desired address, Ophirum offers pick-up locations throughout Germany, where you can personally pick up gold bought via the online shop. Furthermore, a simple cash on delivery service is available.