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Is now the right time to buy gold/silver for investment purposes?

China, India and Russia are leading the way. They have realised that ordinary money is simply printed paper that only has any value for a limited time, that is, for as long as people are prepared to trust the respective economic system that underpins it. All three countries are in the process of gradually redeploying some of their currency reserves into precious metals. Across the globe, money printing machines are running at full speed to pay for the glut of state expenditure and to stimulate economies suffering from the financial crisis with a fresh injection of cash. But if the value of money is to be kept stable in the long term, the money supply should, in fact, only expand by the same percentage as the economy in the respective currency area actually grows.

 

In contrast, gold and silver cannot be reproduced at will. They have demonstrated their historical importance over millennia as the only method of payment to outlast all other monetary systems. Although gold and silver do not generate any revenues from interest, they retain their value in the long term. As the supply of precious metals (from gold and silver mines, precious metal recovery as a by-product from other mines, from selling by central banks and investors, through refining) has essentially not changed for years (fluctuations of a few per cent each year), precious metal prices can be expected to rise in the long term as the world's population grows and new technical applications for the metals are found. However, due to the fact that, particularly in the case of gold, holdings by central banks, funds and private investors are very large, major fluctuations in the price can be expected time and again as there are always many personal, psychological and political reasons for investors to redeploy their portfolio. An investment in precious metals should therefore not be thought of as an opportunity to generate profit in the short term but as security for the long term. It's not without good reason that traditional advice to investors was to: "Invest 10% of your assets in gold and hope that you never need it".

 

At the moment, investments in physical precious metals are also interesting because profits generated when selling in Germany are not subject to capital gains tax if the asset has been held for over one year and are thus tax-exempt for private investors. In addition, private investors have the option of remaining anonymous when buying precious metals up to an amount of EUR 10,000. As many investors believe that the State is constantly looking to extend its powers of control, this constitutes an important psychological argument.

 

In contrast to silver, the acquisition of gold in investment form (investment coins, gold bars) is exempt from VAT. Silver, however, will have a higher potential for price increases in the long term as industrial demand is constantly growing.

 

The price of both metals has already increased sharply in recent years. It is up to each individual when considering their investments to decide whether to sell now - and risk the irritation of having sold too early or at the wrong time in the event of a short-term price adjustment or not to buy now and risk the irritation of not reaping the benefits if the rally in prices continues.

 

In any case it is clear that an investment in physical precious metal represents a long-term investment for spreading personal risk. The investor should consider, ideally before the purchase, where and how the investment bars or coins are to be safely stored.

Is now the right time to sell gold?

Gold is money!

 

Gold is nothing more than a metal that is recognised internationally as a currency and an investment item. The problem that it has to be exchanged into the relevant currency by means of a sale transaction in order to pay for normal purchases or settle bills is not so marked if just the gold itself is to be sold. The problem is rather how and where it should be sold.

 

It's essentially the right time to sell if you want to buy something or have to pay for something, want to share out a precious metal inheritance fairly or turn it into money, or if you want to cash in on profits in the event of price increases.

 

As a traditional precious metal trading company we have been a safe and trusted partner in the purchase of precious metals since many years.

Disclaimer

Please note that the information provided on this website does not constitute investment advice nor any recommendation to buy or sell. The information is only intended to give you an overview of the general trends in the precious metal markets.