Rediscovering the merits of gold in times of economic crisis, many new savers, and therefore little familiar with the risks associated with its acquisition, have let themselves be tempted by the precious yellow metal, but not always for the better. Aware of the situation, Jean-François Faure, president of AuCOFFRE.com, recalls the “golden rules” to be followed for those who want to invest safely in a trusted intermediary
Avoid banks It is no longer their job. All the bankers say it themselves. They cannot easily sell physical gold so they either avoid doing it or don’t always do it right. This complexity is due to the fact that agencies can no longer manage securities. In addition, they do not achieve sufficiently attractive margins on these products compared to the time spent. And they don’t buy gold either because there are no more numismatists or experts who can measure the
2: Gold yes, but in what form?
Only investment gold Investment gold is a financial concept defined by the European Union. According to Directive 77/388 / EEC, investment gold can exist in three forms. It may be a bar (or ingot) or a wafer with a purity equal to or greater than 995 thousandths, of more than 1 gram. Second possible form: a coin minted after 1800, of a purity equal to or greater than 900 thousandths, having been legal tender in the country of origin and sold at a price not exceeding 80% of the value of the ‘gold contained in the room.
3: Store your gold in secure vaults
Keeping your gold at home is not a good idea It’s dangerous because gold stirs up greed as evidenced by the many snatching thefts, pharmacy attacks … And, in the event of death of a person holding gold, it is common that no one is aware of this hidden gold. – Check and choose the domiciliation of the safes (France, EU, non-EU) The various licensed physical gold sellers generally offer safe deposit boxes. This can be located in France, in the European Union or outside the EU. Each of these countries has tax consequences on the gold kept: in the European Union either the flat-rate tax or the common law regime applies, outside the European Union only the common law regime applies (details below).
4: Monitor the price of gold on the Internet
No more official quotation since 2004 The best way to buy investment gold at the most interesting price is to compare the prices displayed in the quotations of the various players recognized on the market. – Bearish or bullish trend Whether the gold price trend is bullish or bearish, you still need to have a minimum of gold to protect your assets. Wealth managers agree that you need to own between 5 and 20% of your portfolio, depending on the economic context and other investments made.
5: choose the moment of the resale
The moment of resale is essential .You must be able to resell or incash your gold, even in the midst of a financial panic, through a system that allows you to place a sell order quickly and have your order executed within minutes, then ” have your money credited to your account in less than 48 hours. It is also recommended to ensure that you can place sales orders 24/7 on the chosen platform. – interesting times to sell your gold. Ideally in a bullish period. Another reason to invest in gold is you can cash your gold in time of financial crisis. Taking a loan is a difficult, complicated and long process. Loan lends 75% at LTV whereas You can avail Cash for Gold which is an instant process & would be 99% around the actual value.”
6: Only buy parts under seal with number on each bag and invoice
The parts must be kept under seal, invoice included, for various reasons … Firstly, for conservation: a badly preserved part loses its value. Secondly, to choose the most advantageous tax system for resale.
7: Choose the most attractive tax system
From the start, the investor must orient himself towards actors who allow to opt for the most advantageous tax system. It is necessary to verify, during the acquisition, that the products purchased will allow to choose its taxation (sealed parts) for a total exemption after 12 years! In precious metals, a distinction is made between coins, jewelry and the like (medals and tokens). The coins are divided into two subsets: minted before 1800, they are considered as collector’s coins, after 1800, as precious metals that are legal tender or demonetized. A specific tax system applies to each of these products:
8: Compare the commissions of the actors
The sites for the sale and purchase of gold are remunerated in different ways, most often by deducting a percentage from the transactions carried out. On average, gold sellers get paid 2 to 4% per transaction, and redeemers 5 to 10%. Some specialists take a lower commission, like AuCOFFRE.com with 1% on sale and 1% on purchase. In any case, you have to find out beforehand so as not to have any bad surprise