Buying gold - 7 good reasons to buy gold

• Gold is a suitable investment for preserving value
• Gold can also be used as an object of exchange in times of need (keyword: cash ban)
• Gold is exempt from sales taxso you can buy it cheaper than silver or platinum, for example
• Gold is the most tradable of the other precious metals in its known forms
• They are independent of banks and financial institutions (keyword: state access to accounts, creditor liability)
• They have real physical value (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

Anyone who invests their money in gold is thinking long-term - that means at least in decades. Gold always proves its worth when other assets lose the confidence of the population and the markets. Then the price of gold can also rise explosively. In return for the yellow precious metal, the currency loses purchasing power. However, as many people have to liquidate their reserves in order to reduce their debts in such an environment, many homes also come onto the market, causing prices to fall due to oversupply. Gold, on the other hand, is only available on the market to a limited extent. In contrast to other investments, an oversupply can hardly lead to a fall in prices.

We have already had an economic crisis, say some, while others are certain that it is still ongoing and has not yet reached its peak. Compared to such a peak, the 2008 crisis would be a "mail fan". The price of gold quadrupled between 2001 and 2011, reaching its peak in 2011. The years during the economic crisis in particular were a turbulent time for the stock market and investors. Many feared the collapse of the euro, which led to a sharp rise in demand for gold bars and gold coins (e.g. Vienna Philharmonic). After all, should a financial crisis or the value of a currency fall, it is likely that gold will still retain its value or even increase in value. The following has always been observed in the past: The more uncertainty was triggered in society, for example by financial crises, the more people put their trust in gold.

When investing in gold, however, you should pay attention to a few aspects. This is where good products differ from better products and reputable dealers from dubious sellers.

Buying gold - what should you look out for?

Not all gold is the same! A gold investment in jewelry, for example, is not an investment unless the jewelry is of cultural and historical value. It is also better to buy bars from manufacturers who are also authorized to produce large bars for the banking trade(good delivery manufacturers). Other gold bars may have the same gold content, but are not purchased by banks and many precious metal dealers. However, bars from good delivery manufacturers are accepted worldwide. This applies even if these manufacturers have withdrawn their license over the years.

A reputable retailer will inform you of the advantages and disadvantages of their products and take enough time for you. This is part of good service. The precious metal experts at Gold & Co. will provide you with serious and competent advice on all questions relating to 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 an ounce? Vienna Philharmonic?
• What amount of money should you invest, taking your circumstances into account?
• 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 price differences?
• How do you achieve the best flexibility at the best price/performance ratio? Which products pay off in grams and which should you avoid?
• What is the difference between buying gold and silver?

The question of the division/denomination when buying gold is closely linked to your wishes and needs. Every reputable precious metal dealer will ask you about your intention to buy in order to be able to respond as precisely as possible to your needs. The amount you wish to invest, whether you have already made a gold investment and also the form in which you have bought gold play an important role. 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 the right products for you. A reputable dealer will guide you through the consultation and answer all your questions competently.

Gold & Co. is a family business and can look back on 130 years of gold tradition. The management and all employees will be happy to advise you professionally on all matters relating to investment gold, investing in precious metals (gold, silver, platinum) or buying gold. Benefit from our service and let us advise you on buying gold in a non-binding and free consultation.

Are there risks when buying gold?

As with any investment, buying or selling gold involves both opportunities and risks. In addition to gold price fluctuations, currency fluctuations are also a factor that can contribute to the appreciation or depreciation of your gold investment. For example, a falling gold price in dollars does not automatically mean that your gold will be worth less. If the dollar strengthens against the euro, profits can be made in the euro currency even if gold prices fall in dollars. This has been particularly evident 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 influences.

Especially in times of crisis, it makes sense to diversify your assets intelligently, reduce risks and buy real assets. The probability that gold will retain its value, even if traditional 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 any interest - which is why we recommend that our clients only invest around 10-20% of their assets in gold. At the current low interest rate level, however, an even higher ratio is possible.

Gold in history

Gold was already considered "hard currency" by the ancient Egyptians. Gold was the money of the time. Gold bars and gold coins in particular were used in trade to exchange 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 WW I, WW II but also today - see Ukraine, Libya, Iraq etc.) the victors always secured the loser's gold treasure first. The larger quantity of gold strengthened the currency of the victor country.

Even though the gold standard has been officially abolished, nowadays every currency is 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 and silver coins, electronic money and the resulting modern financial instruments that we know today also emerged in the course of development. However, these means of payment are often subject to speculation, price fluctuations and are sometimes very crisis-prone. This has been particularly evident in the price of gold in recent years. It has been observed that investors around the world have moved away from cash and increasingly invested in gold. The high demand increased the price of gold: from 2001 to 2011, the price of gold rose from 257 dollars per ounce (31.1 grams) to 1,837 dollars per ounce. This corresponds to an increase in value of around 715 percent or 1,412 euros per ounce. Although experts differ widely in their forecasts, the majority actually expect a medium-term rise. 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, especially in physical form. However, if you want to invest your money in a way that preserves value in the medium or long term, you are on the safe side with a gold purchase from Anlagegold.

Would you like to buy or sell gold or do you have any questions? Then you can contact us at any time or pay us a visit. At our branches in 1090, 1030 or 1220 Vienna, friendly and competent staff await you to offer you the best possible service. We look forward to your visit!