How to invest in the digital world’physical gold ?

Gold is considered worldwide as the safe haven par excellence. Indeed, this investment medium is timeless and not very sensitive to the policy of banks. However, the valuation of the precious metal is still determined by supply and demand.

Thus, it is an asset like any other that exposes to risks of losing money. You can nevertheless secure the investment by taking certain precautions.

To invest in the physical gold: for what to make ?

Individuals most often decide toinvest in physical gold to ensure the security and fungibility of their assets. Indeed, this precious metal inspires confidence and has a universal value. You can therefore get cash from it, regardless of the country and the context of the exchange.

Moreover, the purchase of gold bullion is now facilitated by the existence of specialized sites and dedicated counters.

As an investor, you can also take advantage of the Gold’s reputation as a safe haven. The value of the asset is generally stable in periods of economic growth or even stagnation. In case of instability or crisis, the precious metal suddenly becomes very sought after by individuals, professionals and institutions.

This increase in demand will necessarily increase the price of gold and the potential capital gains on resale.

Physical gold is also distinguished by its tangible and available side. Indeed, you will have gold bars or coins in your possession. You will be able to use them at any time and as you wish (sale, exchange, transmission, fusion, transformation…). In comparison, you will have to meet certain conditions and perform various operations before converting shares into cash.

How to go about it ?

Before investing in physical gold, you must take the time to choose your interlocutor well. The asset itself is a a guarantee of security. However, you are not immune to dubious practices and scams.

In the best case, you will buy gold bars or louis at a price higher than the market price. However, fraud is the biggest risk in the sector.

As a precautionary measure, choose recognized players such as banks, counters or brokers and specialized sites. You can then be sure of the reliability of the advertised characteristics and the security of the transaction. Moreover, these operators often offer additional services such as gold storage.

You should anticipate this problem by investing in physical gold.

Unless you have a safe-deposit box, it is not recommended to keep gold bars or coins in your home. Jewelry can eventually blend in with your fashion accessories. On the other hand, the other forms are easier to identify.

However, lost gold is difficult to trace, because it can be transformed. Nevertheless, collectible coins are more valuable in their original form. A connoisseur will avoid melting them and will allow you to find them.

Some tips for investing

As with any other asset, you need to clearly define your asset strategy for investing in physical gold. The best solution will depend on your objectives and your investment horizon. Moreover, these criteria are decisive when selecting your investment medium.

You can choose between jewelry, bullion of different weights, bullion coins and collectibles.

It is better to bet on coins and bars if you rely on the fungibility of gold. Indeed, collector’s coins are intended for a rather restricted public. Their value is disconnected from the price of the precious metal on the market. Depending on the situation, this can be an advantage or a disadvantage. On the other hand, you have objects at the price of gold with bars and coins.

However, you will be subject to capital gains tax (36.2%).

You must study the taxation of gold on a long-term investment or for patrimonial purposes. You will then have access to an interesting tax system in case of resale or transmission of your goods. You can, in principle, benefit from an exemption by keeping investment gold for more than 22 years. Before this deadline, you will have to pay capital gains tax (19%) and social security contributions (17.2%).

You can, however, switch to the tax on precious objects (6%) by investing in jewelry or collectibles.