Deposits in gold: features, conditions, interest and recommendations

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

There are a lot of options for investing free cash. Along with the risky stock, foreign exchange market, mutual funds, there are also risk-free bank deposits, savings certificates. Credit institutions also offer gold deposits to their clients.

Views

Metal accounts are divided into two types: custody accounts and depersonalized metal accounts. In the first case, an individual buys a bar of gold and transfers it to the bank for storage. In the second case, the invested funds are simply tied to the virtual metal. The cost of the deposit changes in the same way as the gold rate.

Buying an ingot

This type of investment is accompanied by a package of documents. In particular, the client is issued a certificate (f. 377-k), which indicates all the information about the investment: the number of bars, their weight, fineness, series, price per ounce. It will be possible to sell in the future ingots only with the provision of this receipt. Interestingly, in the Russian market, not all banks involved in the sale of ingots buy metal from customers. Moreover, when selling"foreign" metal, the bank requires proof of ownership (the same receipt 377-K). Although the situation is not yet so critical. In Ukraine, for example, banks buy "foreign" bars at discounts of 20-30%. This category includes metals that have the name of the bank in the inscription.

Features

Ingots must be properly and safely stored. Leaving a bullion at home is also not safe because not every bank is ready to redeem a “foreign” bullion. The bank charges an additional fee for the storage service. Imprints, burrs, scratches immediately reduce the cost of the product upon sale. The presence of serious defects may cause a refusal to purchase.

Ingots should be stored in plastic or polyethylene transparent packaging. You also need to immediately find out if the type of packaging affects the purchase / sale of metal. Some banks buy bullion only in branded packaging. Damage to the container also entails a decrease in the cost of the ingot. According to bankers, in this case, the metal loses its appeal. The bank may refuse to accept such ingots, since the issue of their further sale causes a lot of problems. Although some institutions in such a situation buy back the bar at the price of scrap.

Gold deposits are not insured. In the event of the bankruptcy of a financial institution, the client will not be able to return their funds.

When buying and selling an ingot, you will have to pay VAT. If the selling price grows rapidly, then in a few years the profit from the sale will cover the losses from the unrecovered tax. You can save on taxesbuying metal coins. Their price depends not only on the value of the metal, but also on international quotes and exchange rates. Investing in coins is more profitable than in metal.

Spread

It is clear that the price of buying and selling metal will be different. The real spread in the market can be 13%. But the banking sector is highly competitive. Therefore, the difference in price can reach up to 30%. The purchase price, contrary to a common myth, in the Russian Federation is not much different from the world. The difference is 2-3%.

The cost of an ingot is also affected by the presence of quality marks: Argor, Degussa, Umicore. This stamp certifies the quality of the metal and identifies the manufacturer. The latter refers to refineries recognized as suppliers to the London Precious Metals Market. This reputation has 25 of the 60 companies in the world. The highest class status is assigned by the London Market Association (LBMA).

CMI

CHM is an alternative to the stock market. The client buys a virtual precious metal. All information about the investment is displayed on an impersonal account. The owner can make a profit from the resale of "bullions" or in the form of interest on the deposit. The bank hands over to the client not metal, but documents confirming the right of ownership. The contribution is made not in monetary terms, but in grams. With the right approach to investing, a yearly investment in gold can bring up to 50% profit. But for this you need to focus not only on bank interest, but also independently analyze the market.

Investment nuances

First of all, you need to choose an account type. It is better to open time deposits in gold with interest than ordinary ones. Even if the price of metal rises sharply during the period of the contract, you can always terminate the contract ahead of schedule, losing part of the interest.

Interest is subject to personal income tax (13%). If the client withdraws a deposit in the form of cash, then the functions of the tax agent for calculating the amount of the fee and transferring funds to the budget are taken over by the bank itself. If the client takes the metal ingot, then he himself will have to file a tax return and pay the amount of the fee.

Deposits in gold Sberbank

Sberbank was the first to offer OMS deposits on the Russian market. At that time, gold, silver and platinum bars of various weights (from 1 gram to 1 kg) were on sale. Demand for low denomination metal was so high that there was simply not enough bullion.

And today the country's largest financial institution also provides services for opening and maintaining metal accounts. Sberbank does not provide deposits in gold in all regions and branches. Therefore, the first step is to find a branch on the bank's website that works with CHI. To conclude a contract, the client must provide his passport.

Sberbank also sells gold (metal deposit) upon receipt of an electronic application from the Internet banking system. To register it, you need to log in to your personal account, go to the "Deposits" section, selectitem "Open an account", specifying the type "Anonymous". At the next stage, you need to select the type of metal, indicate its mass and account number for debiting funds. So through the Internet, Sberbank makes a contribution to gold. The rate is set automatically, taking into account quotes. To confirm the application, you need to click on the "Open" button, check the correctness of the specified data and "Confirm" the questionnaire. You can also manage your account through your personal account.

Price for metal deposits

Gold rate today and for any period of the past can also be viewed on the bank's website. To do this, on the main page, you need to select the "Quote" item, the "Metals" value and indicate the period of interest. If you wish, you can also view the price archive. The bank does not charge interest on OMS. Profit is generated by rising metal prices.

Benefits

• Metal deposits practically do not get cheaper. Gold is rising in price over the long term. The demand for this investment greatly increases in times of crisis. People are trying to save their accumulated funds by investing them in reliable financial instruments.
• When closing an account, the client can receive a bar of gold or the value of the deposit in monetary terms. But in this case, you will have to pay VAT in the amount of 18% of the deposit amount.
• On ordinary accounts, profit is formed when prices rise.
• The purchase and sale transaction is executed instantly, without additional operations. There is no charge for opening and maintaining an account.
• Opening an account can evenminor citizen (under 14 years of age - with the permission of the parents or guardian).

Banks that offer deposits in gold can bear only one type of risk - the physical deterioration of the quality of the metal. Gold, like any other metal, is subject to physical wear and tear. Even the fulfillment of all requirements for the storage of metal cannot save from this. In the long term, the price of gold is constantly increasing. The depreciation of the dollar, the main world currency, stimulates central banks to replenish gold reserves.

Conclusion

Trading in the market is not for the faint of heart. In the long run, investing in gold can bring real income. Whether it is profitable to invest in OMS bullion, each investor decides for himself. Ceteris paribus, investing in the OMC will bring more profit to the investor than buying an ingot.