How to invest in gold in a bank? How to invest in gold?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Gold has been considered a precious metal for many centuries. It is used not only to create unique jewelry, but also to increase capital. In many ancient countries, gold coins were used as money. And the rulers of the most economically developed countries still prefer to invest in gold today. A simple citizen who knows little about economics can create his own reliable investment portfolio.

Historical facts

The history of relations between humanity and gold began many millennia ago. The exact date of discovery of the precious metal cannot be named. Historians to this day argue on this topic. Gold has long been valued for its unique properties. It does not oxidize and can be stored for a long time. Some of the gold jewelry kept in museums today is over 2,000 years old. There is extremely little gold in nature, and in order to extract it, considerable financial costs are required.

People have been investing in gold since its discovery. But the real boominvestment started after 2000. People remembered that the precious metal is actually a reliable asset. Gold never drops in price. This means that by investing in precious metal, you will not only be able to save your finances, but also increase them. Attentive investors who bought gold in 2000 can sell it for much more today. A troy ounce has increased in price by 560% in 10 years.

Modern gold market

Investing in precious metal has always been profitable. But before investing in gold, there are a number of factors to consider. The cost of a precious metal may depend on the general state of the market at a certain moment. Therefore, it is not advisable to build your investment portfolio on gold alone. There is a risk of losing your money.

Before deciding whether to invest in gold, it is worth studying the international situation. The value of a troy ounce can be influenced by international political conflicts, legislative projects related to the sale and purchase of precious metals, the economic state of the state, the level of gold reserves of the national bank, etc.

A huge rise in gold prices was observed in 2011. Most experts believe that such a jump was artificially created. Panic and excitement took their toll. Small investors began to buy the precious metal in large quantities. By 2014, the world stock of the precious metal broke all records. Today this figure exceeds 180 thousand tons. Almost half of allthese stocks are jewelry. Investment savings account for only 23%.

Many investors today are in a hurry to invest in gold. Reviews show that you can really make money in this way. But this is a long-term financial instrument. Don't expect profit in the first few months of investing.

How to invest in gold?

There are several ways to invest in precious metal. It is possible to purchase gold bars and coins at the bank, buy original jewelry or antiques, open an unallocated metal account with a financial institution, start trading on the stock exchange using the services of a broker.

Buying is considered by many to be the smartest way to invest in gold. Investor feedback shows that physical contact with the precious metal (when you can see it, hold it in your hands) gives you more confidence in the future. Although this way of investing cannot be called the most profitable.

Gold bars and coins

For those who do not know how to invest in gold, Sberbank offers to purchase gold bars or coins. The financial institution has an appropriate license to conduct operations related to precious metals. Each gold bar has a hallmark, which means specific gravity. The bank offers gold bars weighing from 1 gram to 1 kilogram. You can also find information about the manufacturer, see the quality certificate.

Before investing in gold, Sberbank offers to read the terms of the contract. It specifies the cost of the ingot, its weight, as well as the sample. The precious metal offered by financial institutions is 99% gold.

It is also profitable to invest in gold with the help of coins. They are of two types - investment and collection. The second type is of historical value and can be used to preserve capital. Collectible coins are quite expensive. Only a real professional can carry out an assessment. It is much easier and faster to buy investment gold coins.

Investing in jewelry

Even those investors who are poorly versed in economics and financial transactions know how to invest in gold. All you have to do is buy original jewelry. This is the easiest and most affordable way to invest. All you have to do is choose a piece of jewelry and pay for it at the store's checkout. At the same time, there is no need to conclude an agreement, fill out declarations, etc.

Investing in jewelry also has a number of disadvantages. After the product leaves the store counter, it falls in price by 25-35%. It will no longer be possible to sell it at the primary cost. In addition, pure gold is almost never used to make jewelry. Most of the products that are presented in domestic jewelry stores are 585th test. This means that the metal contains only 58.5% gold. Before investingmoney in gold of this quality, it is worth thinking a few times. Perhaps it still makes sense to contact the bank?

Unidentified metal bank accounts

This is a regular account that can be opened at a financial institution. The only difference is that it stores grams or kilograms of gold, not money. Many do not know how to invest in gold in a bank and not overpay. The fact is that the physical purchase of the precious metal at the time of the conclusion of the contract does not occur. This means that the transaction is tax-free. Money is simply deposited into a specific account. In this case, the currency is converted at the selling rate for a certain day.

It is possible to open an urgent metal deposit. In this case, the profitability will be even higher. The investor will be able to earn by rising gold prices on the domestic market, and will also receive interest on his deposit.

Opening an impersonal metal bank account has some nuances. The conclusion of the contract will not require any financial costs. But if the investor wants to receive the amount of the deposit in gold, there will be some costs. First of all, it will be necessary to pay 18% VAT on the deposit amount. In addition, it will be necessary to double-check the dimension of the ingot. And this procedure is also not free.

Which is the best way to invest?

Each novice investor sooner or later wonders how to invest in gold most profitably. It all depends on the expected result. If you need justsave your capital, then physical purchase of gold is fine. But here, too, it is better to give preference to bank bars and coins. In this way, the money can last much longer.

For those who want to earn money on gold, it makes sense to think about an impersonal metal bank account. The main risks associated with the storage and maintenance of the precious metal remain with the financial institution. The investor will receive a guaranteed profit. It will be much more if you conclude an agreement with the bank for a long time.

Which bank to entrust the capital?

For those who do not know how to invest in gold, VTB 24, Sberbank, and Alfa-Bank offer the most favorable conditions. These financial institutions occupy leading positions in the domestic market. Sberbank, for example, has been working with depersonalized metal accounts since 2002. During this time, many investors managed to use the services of a financial institution. Some even managed to double their capital. The bank works with both accounts and physical gold.

The working conditions of Alfa-Bank and VTB 24 are very similar to each other. These financial institutions have far fewer branches across the country than Sberbank. But problems, as a rule, do not arise. Even for small investors, information is provided on how to invest in gold. Alfa-Bank offers a physical purchase of the precious metal or opening an account from 1 gram.

Tradethrough brokers

Economically savvy investors are in no hurry to bring money to the bank. You can trade gold on the stock exchange. This is the most difficult and at the same time profitable investment option. It is not enough to have only initial capital. You need to know the nuances of trading on the stock exchange, understand the terms and financial instruments. At the same time, a decent income can be obtained not only at the time of rising prices for the precious metal. A competent broker will be able to earn on the fall in the value of a troy ounce.

Only a truly experienced investor will be able to trade gold on the market. There is a huge risk of losing your capital completely.

Is it worth investing in gold?

About 50% of all gold-related transactions are made when an economic crisis begins in the state. This is due to the fact that the precious metal is one of the most stable investment instruments. At the same time, the price of an ounce never stands still. Gold in one moment can rise in price by 15% or fall in price even more.

Investing in precious metal is best for the long term. It is worth forgetting about your investment portfolio for 5-7 years. In this case, its profitability will indeed be high.