What kind of gold is suitable for investment
Precious metals are an excellent way to diversify your investment portfolio. When buying investment gold, however, you should make sure to buy the right gold products. Because not all gold is equally suitable for investment.
Gold as an investment: Why at all?
Gold and other precious metals are suitable as a long-term and above all crisis-proof investment that primarily serves to safeguard assets.
While the value of money is constantly decreasing thanks to inflation, precious metals such as gold, silver, platinum and palladium are stable in value and have limited availability. Depending on the possibility, we therefore recommend investing 10 to 20 percent of total assets in precious metals.
Investment gold tax-free in Austria
Gold in particular is suitable as an investment, as investment gold in the form of coins and bars is exempt from VAT in Austria, as it is throughout the EU. However, in order to qualify as investment gold, certain requirements must be met:
Gold bars must have a fineness of at least 995/1000 and have a weight generally accepted on the gold market.
Investment gold coins, on the other hand, must have a fineness of at least 900/1000, have been minted after 1800, be legal tender in their country of origin or have been in the past, and the selling price of the coins must not be more than 80% above the pure material value.
If these conditions do not apply, the gold does not count as investment gold for the legislator. For investment products made of silver, platinum and other precious metals, value added tax is due, but it may be possible to claim differential taxation.
Classic investment gold is available in many varieties:
Buy investment gold in bar form
The advantage of gold bars is the lower issue premium compared to coins. While smaller gold bars - between 1g up to 100g - are today mostly issued in the form of minting bars, larger bars, mostly from 250g, are usually found as casting bars.
If you want to buy gold in bar form, we recommend buying bars exclusively from Good Delivery manufacturers. These are produced by LBMA-certified manufacturers and are considered "bankable" worldwide, so they can be sold easily and without deductions at any time and anywhere.
Gold bullion coins as an investment
Not every gold coin is equally suitable for investment. A distinction is made between collector coins and bullion coins.
Bullion coins are made of pure fine gold (999/1000) or very high alloys (986 ducat gold or 22 carats for the Krugerrand). The price of such a coin is made up of the pure material value plus a small surcharge for the minting. Its price is thus tied to the current price of gold. The minted face value is always far below the actual material value.
In modern bullion coins you can find both reprints of old curant coins (ducats, crowns,...) and on the other hand modern gold coins like the Vienna Philharmonic or the Maple Leaf.
The best gold coins for beginners are bullion coins that are as well known as possible and thus widely accepted.
Our Tip: The "big six" bullion gold coins
Jewelry, medals and collector coins not suitable as an investment
Jewelry, medals and collector coins are not suitable as gold investments. When selling jewelry, precious metal dealers usually only pay the scrap gold price for the material, which is based on the gold price with a discount for melting and recycling.
In the case of collector coins, the material value is secondary to the value; what counts first and foremost is the offer, the condition of the respective piece and also whether a collector likes it and is willing to spend money on it.
Medals are between collector coins and jewelry. Rare award medals but also commemorative coinage may be in demand among collectors, but when gold is purchased by a dealer, only the old gold price is paid.
Investment gold: Get advice!
If you are interested in investing in precious metals, let our gold experts advise you free of charge and without obligation!
In a personal discussion, we get an idea of your motives for investing in gold. Based on this, we work together to develop a denomination tailored to your personal needs and recommend the ideal gold products for you.