Gold Investment Coins : Recommendations for Investors
Example: when we say that the bonus of Napoleon is + 4%, it means that investors are willing to pay 4% more than the gold weight of this coin to acquire it. Fluctuating, the importance of the premium is determined by several factors: scarcity and condition of the room, difficulty of manufacture, popularity with investors. It is generally advisable to buy a coin with a low premium so as not to overpay.
Good to know: to be sure of being resold to their course, coins and ingots must be in a perfect state of preservation. Preference should be given to coins with a purity of 999.9% and coined by major coin houses (United States Mint, Perth Mint, etc.). Among the stars of the market are the pieces of an ounce “American Eagle”, “Maple Leaf” or the famous leader Napoleon, struck until 1914. The optimal shelf life of the pieces is about ten years.
Gold Investment Coins: Tips and Advices
It is better to buy physical gold:
selecting a trading house that has been established for several decades;
buying gold coins or bullion in Paris rather than in the provinces because, for lack of competition, prices can be 10% higher than in the capital;
by favoring a transaction on the Internet (secure sites only) to a purchase in store, because the commissions are lower. The best houses quietly deliver their home customers (anonymous packages) through ultra-secure networks.
Good to know: physical gold is penalized by a tax that has been increased in 2018. Two options are possible: a flat tax of 11.5% or a degressive tax on the capital gain (36.2%, then 5 % discount / year beyond 3rd year) if the seller can justify the price and the date of acquisition.
Gold Investment Coins : Investment Guide
Gold paper and invest in gold
It is also possible to invest in the price of the yellow metal through stock market products that have: the advantage of not having to hold directly yellow metal; for the inconvenience of exposing the investor to the bankruptcy risk of the issuer.
The paper gold market is made up of a multitude of investments. Among the main ones, we can mention:
shares of gold companies: unlike other metals such as silver, gold mines are generally monometallic. Depending on the level of production costs, the price of this metal will have a strong impact on the performance of these mining companies;
certificates and trackers that replicate the performance of the gold price. The investor holds representative shares of a fraction of an ounce of gold backed by the physical gold stocked by the ETF. The physical gold stock actually held by these ETFs is subject to recurring questioning. Some investors fear that they will not have sufficient consideration if investors sell their shares massively, for example in the event of a financial crash;
gold funds such as mutual funds and SICAVs whose assets are essentially invested in shares of listed companies whose activity is focused on gold: gold mines, mining prospecting companies, etc.
the Forex on which savvy investors can buy contracts by which they play on the rise or fall of the yellow metal with a strong leverage effect.
Good to know: the tax on paper gold is that of income and capital gains from the sale of securities.