Buying gold - 7 good reasons to buy gold

Buying gold - 7 good reasons to buy gold © Own image
  • Gold is suitable as an investment to preserve value
  • Gold can also be used as a barter object in times of need (keyword: cash ban)
  • Gold is exempt from sales taxTherefore, unlike silver or platinum, for example, it can be bought at a lower price.
  • Gold is most tradable in its known forms compared to the other precious metals
  • They are independent of banks and financial institutions (keyword: state account access, creditor liability)
  • They have real physical values (currency is without trust or only paper)
  • Spreading the risk in times of crisis (an alternative in the area of real value investments)

Gold as a long-term investment

Those who invest their money in gold think in the long term - that means at least in decades. Gold always proves its worth when the other values lose the confidence of the population and the markets. Then the gold price can also rise explosively. In return for the yellow precious metal, the currency loses purchasing power. However, since in such an environment many people have to liquidate their reserves in order to get out of debt, many homes also come onto the market, causing prices to fall due to oversupply. Gold, on the other hand, has limited availability in the market. Unlike other valuable assets, oversupply can hardly cause prices to fall.

Some say that we have already had an economic crisis, while others are sure that it is still ongoing and has not yet reached its peak. Against such a peak, the crisis of 2008 would be a "mail fan". From 2001- 2011 the gold price quadrupled and reached its peak in 2011. Especially the years during the economic crisis were a turbulent time for the stock market and investors. Many feared the collapse of the Euro, which caused the demand for gold bars and coins (e.g. Vienna Philharmonic) to rise sharply. After all, if there should ever be a financial crisis or a decline in the value of a currency, it is likely that gold will nevertheless retain its value or even increase. In the past, the following could always be observed: The more uncertainty was triggered in society, for example by financial crises, the more people trusted in gold.

However, when investing in gold, you should pay attention to some aspects. This is where good products differ from better ones and reputable traders differ from dubious sellers.

Buying gold - what should you pay attention to?

Gold is not equal to gold! A gold investment, for example, in jewelry does not represent a value investment, unless the jewelry represents a cultural-historical value. Likewise, it is better to buy bars from manufacturers who are also allowed to produce the large bars for the banking trade(good delivery manufacturers). Other bullion bars may have the same gold content, but will not be purchased by banking institutions and many precious metals dealers. Bars from Good Delivery manufacturers, however, are accepted worldwide. This is true even if these manufacturers have had their license revoked over the years.

A reputable dealer will point out the advantages, but also the disadvantages of his products and take enough time for you. This is part of the good service. The precious metal experts of Gold & Co. advise you seriously and competently in all questions about buying gold:

  • Is it better for you to buy gold bars or coins?
  • What denomination or sorting do you use within these product classes? Does it make sense to buy small gold ducats, for example, or the Vienna Philharmonic ounce?
  • What amount of money should you invest wisely, taking into account your circumstances?
  • Are your gold bars certified?
  • How and where do you store the gold?
  • When is the right time to buy and at what price?
  • Which products are particularly suitable for sale and what are the differences in price?
  • How do you achieve the best flexibility at the best price/performance ratio? Which products pay off in terms of grams and which ones should you avoid anyway?
  • What is the difference between buying gold and silver?

The question of division/denomination when buying gold is closely linked to your wishes and needs. Any reputable precious metals dealer will ask you about your intention to buy, in order to be able to respond to your needs as precisely as possible. It plays an important role what amount you want to invest, if you have already made a gold investment and also in what form you bought gold. This information is therefore relevant in order to find the right mix of gold bars and gold coins for you. Once this weighting has been determined, the next step is to work out which products are right for you. A reputable dealer will guide you through the consultation and answer all your questions competently.

Gold & Co. is a family business and looks back on 130 years of gold tradition. The management as well as all employees will gladly and professionally advise you in your concerns around the topic of investment gold, investment in precious metals (gold, silver, platinum) or gold purchase. Benefit from our service and let us advise you in a non-binding and free conversation about the purchase of gold.

Are there risks in buying gold?

As with any investment, buying or selling gold creates both opportunities and risks. In addition to gold price fluctuations, currency fluctuations are also a factor that can contribute to the increase or decrease in value of your gold investment. For example, a falling gold price in dollars does not automatically mean that your gold will be worth less. Provided the dollar strengthens against the euro, even if gold prices fall in dollars, gains can be made in the euro currency. This has been observed especially in recent years. However, what puts gold ahead of any other investment product is the experience that it retains its value over thousands of years and retains its color and beauty even under the most adverse environmental conditions.

Especially in times of crisis, it makes sense to intelligently diversify one's assets, mitigate risks and buy real assets. The probability that gold will retain its value, even if classic financial investments lose value, is very high based on centuries of experience. In addition, gold has enjoyed continuous value for centuries and is therefore suitable for long-term value preservation.

However, gold does not yield interest - which is why we recommend that our customers invest only about 10-20% of their assets in gold. However, at the current low interest rate level, an even higher ratio is possible.

Gold in history

Gold was already considered "hard currency" by the ancient Egyptians. Gold represented the money of the time. Especially gold bars and gold coins were used in trade for the exchange of goods. The Egyptians knew the precious metal and were well aware of its value - the natural limitation of the resource always guaranteed a certain value throughout history. In every war (in WK I, WK II but also today - see Ukraine, Libya, Iraq etc.) the winners always secured the gold treasure of the loser first. The larger quantity of gold strengthened the currency of the victor.

Even though the gold standard has been officially abolished, nowadays every currency is nevertheless backed by gold to secure its value - at least to a certain percentage. In 2015, the European Central Bank (ECB) held 15,794 tons of gold to back the euro.

In addition to physical means of payment such as gold & silver coins, electronic money and resulting modern financial instruments as we know them today also emerged in the course of development. However, these means of payment are often subject to speculation, price fluctuations and are sometimes very susceptible to crises. This has been particularly evident in the price of gold in recent years. It was to be observed that investors around the globe took distance from the money and increasingly put on a gold investment. The great demand increased the gold price: From the year 2001 to the year 2011, the gold price developed from 257 dollars per ounce (31.1 grams) to 1,837 dollars per ounce. This corresponds to an increase in value of approximately 715 percent or 1,412 euros per ounce. Experts differ widely in their forecasts, but actually the majority expect a medium-term increase. Nevertheless, forecasts must be treated with extreme caution.

Despite this enormous increase in value in the past, an investment in gold is not suitable for short-term speculation on profits. We strongly advise against short-term speculation, even more so in physical form. However, if you want to invest your money in the medium or long term to preserve its value, you are on the safe side with a gold purchase from Anlagegold.

Sie möchten Gold kaufen oder verkaufen oder haben Sie Fragen? Dann können Sie uns jederzeit kontaktieren oder uns einen Besuch abstatten. In unseren Filialen 1090, 1030 oder 1220 Wien erwarten Sie freundliche und kompetente Mitarbeiter, um Ihnen einen bestmöglichen Service zu bieten.  Wir freuen uns über Ihren Besuch!

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