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Life insurance policies, pension savings contracts or time deposits are only considered crisis-proof investments to a limited extent. Gold and silver, on the other hand, are physical materials that cannot be multiplied at will and are therefore very stable in value. The major central banks rely on gold as a currency reserve and have tons of it in storage. For private investors, however, silver can also be an interesting option.

The precious metal is needed in many branches of industry - but since so far only a fraction of the processed metal is recycled, an increasing shortage is to be expected. Experts therefore expect a large increase in value in the coming years, which is why a long-term investment in silver is recommended in https://sg-exness.com/exness-accounts/. However, the trading margin, i.e. the difference between buying and selling value, is higher for silver than for gold. Accordingly, the performance must be more favourable in order to earn a return with silver.

Buying silver Bars

When buying silver bars, 19 per cent VAT is charged on the pure ounce price. If, on the other hand, one decides to buy silver investment coins, the tax authorities only charge the reduced VAT rate of seven percent.

The proceeds from the sale of gold and silver are tax-free in Europe, provided the precious metal has been in the seller's possession for at least one year. The payment receipts should therefore be kept as proof for the tax office.

Avoid these mistakes!

Gold can be purchased very easily at banks, coin shops or internet shops. Nevertheless, you should consider a few things before investing in gold:

•     Gold should primarily serve as a long-term hedge against possible loss of monetary value. Gold as a speculative investment is extremely risky due to the strong price fluctuations.
•     Gold is best bought regularly and independently of the price. This results in an average price that compensates for price fluctuations.
•     Gold should only be bought from reputable precious metal dealers or banks. Cheap bait offers may well come from fraudsters.
•     The gold investment should be adapted to the personal income situation. Gold bars and coins can only be sold as a whole. If the gold investment has to be partially liquidated due to a financial bottleneck, several coins of one or half an ounce are cheaper than a large gold bar, even if coins are relatively more expensive due to the premium.
•     When buying gold, the so-called premium is added to the value of the gold coin or bar. For example, an additional 15 to 20 percent is due for a one-gram bar, but only about two percent for a 100-gram bar.
•     Jewellery is unsuitable as a gold investment, because large markdowns are to be expected when selling it. The dealer's margin plus VAT clearly exceeds the potential for value appreciation.
•     Gold is a good reserve for times of crisis, but as a protection against inflation the precious metal is only suitable to a limited extent. In the past, investors achieved the highest real returns precisely in times of deflation.