Gold is considered a safe haven, not just in times of crisis. Because the raw material is limited. But is it also a safe bank when it comes to wealth planning? This is what you should pay attention to.
What was the treasure of a lonely island for seafarers still captivates many people today. We are – of course – talking about gold.
Gold is especially true as a safe investment in times of crisis. The reason is simple: there is only a certain amount of the precious metal in the world, which is why gold has an “intrinsic value”.
But you cannot just buy gold in bars or coins to invest in the precious metal. There are other options. t-online shows you which and what you should consider when investing in gold.
How can I invest in gold?
There are several options available to you to invest your money in gold. An overview of the most common, including their advantages and disadvantages:
Bars or coins
To invest in the precious metal, you can buy physical gold. So you acquire gold coins or gold bars.
- benefits: You have a “tangible” investment that is easy to understand. In addition, there are usually no tax payments on the sale of the bar or coins.
- disadvantage: You should buy a safe or rent a safe deposit box. For the latter, however, several hundred euros a year are due. That goes from your earnings, called rate of return, from. In addition, buying gold from a precious metal dealer is often associated with high fees. In addition, you are not very flexible when selling gold bars, because they can only be converted into money as a whole.
Alternatively, you can bet on gold stocks. In this case, you are not investing in gold directly. Rather, you invest your money in companies that make their money in gold.
A classic example of this is gold mining stocks. Here you become a co-owner of a gold mine. There are also stock corporations that make money by processing gold and their value depends on the gold price, as in the case of mining companies.
- benefits: You benefit when a mining company finds a new gold vein. Even if the demand for gold increases, companies specializing in gold mining or processing will pull in – and make a profit.
- disadvantage: Investing in gold stocks carries a high level of risk. If, for example, all of the gold is extracted in a mine without the company having found a new vein, it threatens bankruptcy. In addition, when you invest in gold stocks, you are heavily dependent on political developments in the mining countries. This applies, for example, to export restrictions or when a civil war threatens.
Special gold securities
Another way to invest in gold is to purchase special gold stocks. These are gold ETCs or gold ETFs.
Gold ETFs are securities that are backed with gold. However, they are not allowed to be bought in Germany. Ask an alternative to them Gold ETCs This is a certificate, a kind of gold delivery note. Gold ETCs also track the development of the gold price and may be traded in Germany.
- benefits: Investing in gold ETCs is relatively easy. Because you don’t have to own a safe or rent a safe deposit box.
- disadvantage: When selling gold ETCs, the withholding tax is due, which you also have to pay when trading stocks. In addition, gold securities are not as “tangible” as physical gold.
Is it worth investing in gold?
That cannot be said across the board. The answer depends largely on the forms of investment and the development of the gold price. Basically, however, gold becomes interesting for investors when there is a threat of inflation or an economic crisis.
Because gold is the “currency of last resort” – means: Since gold has an “intrinsic value”, it can act as a currency if the actual currency loses value. Don’t worry: The euro is generally considered to be a very stable currency, and you certainly don’t have to use gold as a means of payment.
Note: You shouldn’t invest in gold alone. Instead, you should get one broad portfolio to have. Gold should be a small addition here.
What should I consider when investing in gold?
First things first: The gold price is usually very volatile, so it is prone to fluctuations. That means you should have strong nerves when investing in gold.
You should also know: Because gold is considered Crisis currency applies, the gold price often develops in the opposite direction to the Share prices. Falling prices on the stock exchange, the price of gold rises – and vice versa. Also when bond yields fall, the price of the precious metal rises.
Namely, with Bonds achieve less income, this lowers the so-called Opportunity costs for investing in gold. These are the costs you have to put up with if you forego purchasing one product – in this case bonds – because you are instead betting on another product – gold.