Gold as an investment and store of value

Precious metals as protection against the crisis

From your mid-thirties at the latest, you start to think 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 account is a thing of the past

Having money in a savings account is no longer worthwhile today. Why? Mainly because banks no longer pay any significant interest on savings balances. Negative interest rates are still (?) banned on private savings accounts in Austria, 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. As a result, inflation or currency devaluation is progressing. The more money is put into circulation, the faster 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 have a stable value and limited availability. Unlike money, they cannot be multiplied at will and are therefore a good hedge against inflation.

Part of your assets should therefore be invested in precious metals to ensure value stability and capital security.

Gold as an investment: security instead of profit-seeking

History has shown that the greatest gain, especially in times of crisis, is to have your 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 is particularly suitable as an investment, as no VAT is payable on purchases in Austria and most other countries in the world.

Always view gold as a long-term investment that primarily serves to secure your assets. Precious metals should not be seen as an object of speculation! If you are looking for short-term gains, you should look at other forms of investment. In the long term, however, the value of gold in particular has risen enormously.

Bullion coins & bars as an investment

The most important advice that can be given to investors is to follow the rule of broad diversification. This means that any losses in value on the one hand are offset by gains in value on the other.

When you buy gold as an investment, you are investing in small units of coins and bars. This gives you flexibility if you want to convert the gold back into cash at a later date. It is best to choose bullion coins, such as the Vienna Philharmonic or gold ducats. Such bullion coins have a high purity, are therefore traded close to the price of gold and are accepted by banks and precious metal dealers worldwide at all times.

If you want to buy silver or gold bars, choose bars from good-delivery manufacturers! These are bars that are produced by certified manufacturers (Austrian Mint, Argor-Heraeus, C.Hafner,...).

Silver, platinum and palladium are suitable for rounding off a precious metal portfolio. The cheapest way to buy silver, for example, is to buy differentially taxed coins.

Currencies can go under. What remains is gold

We can buy an ounce of gold (31.103 grams) today for the same price as 150 years ago.

A common example of this is a good man's suit: today, 50 years ago, or even 150 years ago, you could always get a man's suit for the equivalent of 1 ounce of gold.
At the same time, several currencies fell victim to currency devaluation, e.g. the krone, which went under 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 again.

Conclusion: Gold, silver & co. make sense as a safe investment

Unlike currencies, precious metals are crisis-proof and a sensible investment. Focus mainly on gold and silver, which can be bought in handy bars or coins.
We at Gold & Co. will be 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 would like to buy, you are welcome to visit our Gold & Co online store.