Precious metals as protection against the crisis
By the time you reach your mid-thirties at the latest, you start thinking about your money, and especially nowadays about crisis-proof forms of investment. The situation on the financial markets does not make it easy for us to find the right investment.
Precious metals as an investment - the savings book was yesterday
Having money in a savings account is no longer worthwhile today. Why? Mainly because banks no longer pay any significant interest on savings balances either. Negative interest rates are still (?) prohibited in Austria on savings accounts held by private individuals, but in Germany some banks are already charging penalty interest on savers' balances.
The monetary policy of the central banks is also increasing the amount of money in circulation. Thereby the inflation or demonetization advances. The more money is put into circulation, the faster the prices rise and the less you get for your money - unfortunately! While the value of money is constantly decreasing, precious metals such as gold, silver, platinum and palladium are stable in value and available in limited quantities. Unlike money, they cannot be increased at will and are therefore a good protection against inflation.
A portion of one's assets should therefore be invested in precious metals as a store of value in order to ensure value stability and capital preservation.
Gold as an investment: Security instead of profit seeking
History has shown that, especially in times of crisis, the greatest gain lies in having one's assets safely invested.
Gold, silver and other precious metals are a safe investment that is not subject to fictitious air bookings or risky financial transactions. Depending on the possibilities, 10 to 20 percent of total assets should be invested in precious metals.
Gold, in particular, is a suitable investment, as no sales tax is charged on purchases in Austria or in most other countries of the world.
Always consider gold as a long-term investment, primarily for asset protection. Precious metals should not be seen as an object of speculation! Those who are looking for short-term gains should look at other forms of investment. In the long term, however, the value of gold in particular has increased enormously.
Bullion coins & bars as a store of value
The most important advice that can be given to investors is to follow the rule of broad diversification. This way, any losses in value on one side will be offset by increases in value on the other.
When you buy gold as an investment, you go for small units of coins and bars. If you want to turn the gold back into money later, this gives you flexibility. It is best to choose so-called bullion coins ("bullion coins"), such as the Vienna Philharmonic or gold ducats. Such bullion coins have a high fineness, are therefore traded close to the gold price and are accepted by banks and precious metal dealers worldwide at any time.
If you want to buy silver or gold bars, choose bars from Good Delivery manufacturers! These are bars produced by certified manufacturers (Austrian Mint, Argor-Heraeus, C.Hafner,...).
Silver, platinum or even palladium are suitable for rounding off the precious metal portfolio. The cheapest way to buy silver, for example, is to buy coins that are subject to differential taxation.
Currencies can go under. What remains is gold
We can buy the same for one ounce of gold (31.103 grams) today as we could 150 years ago.
A common example is a good man's suit: today, 50, or even 150 years ago, you always got a man's suit for the equivalent of 1 ounce of gold.
In the same period, several currencies have fallen victim to demonetization, e.g. the krona, which perished in 1922. After the great inflation, money was suddenly worth nothing and the schilling was introduced in 1924. And since the introduction of the euro in 2002, inflation has increased once again.
Conclusion: Gold, Silver & Co as a safe investment make sense
Precious metals, unlike currencies, are crisis-proof and a sensible investment. Rely mainly on gold and silver, which can be purchased in handy bars or in the form of coins.
We at Gold & Co. are happy to advise you if you want to buy precious metals as an investment. Contact us or drop by one of our branches. If you already know exactly which pieces you want to buy, feel free to visit our Gold & Co online store.
