Trading in precious metals

The agony of choice

There are various ways to invest in precious metals or to bet on rising prices. Those who want to actually hold their investment in their hands can do so in the form of physical gold. For this purpose, investors can resort to gold bars or various gold coins. However, the costs associated with the purchase and safekeeping are higher than for securities investments. In addition, it should be borne in mind that the silver mentioned at the beginning as bars or coins takes up somewhat more "storage space" than gold for the same investment amount. The custody risk can be countered by engaging a reputable partner. In proaurum's cooperation with trade bitcoin Exness, customers can retrieve their current gold assets at any time along with their custody account balance. The government currently still favors gold bars and coins by exempting them from VAT - if held for more than 12 months, price gains are even tax-free. Please note that the tax treatment depends on your personal circumstances and may be subject to change in the future. Please consult your tax advisor.

Exchange traded commodity certificates or ETCs for short (exchange traded commodities) are generally more cost effective when compared to physical precious metals, considering the difference in buying and selling price, product costs and order fees etc. ETCs track the price of the commodity in question as closely as possible and can be bought and sold daily on the stock exchange. In the case of certificates, there is basically a total risk of loss in the event of the issuer's insolvency. In the case of some products, this is to be mitigated by physical collateralization/depositing with precious metals in the value of the bonds issued. In addition, some issuers also offer delivery of the commodity for a fee. Nevertheless, in contrast to physical ownership, the focus of certificates is usually less on the hedging aspect and more on the yield aspect. The latter is even more the case with the third alternative. Investors willing to take risks can also consider an investment in mining shares. Rising precious metal prices generally generate higher profits for mining companies, which in turn can boost the share price.

Conclusion:

Gold can certainly be a stabilizing component in a portfolio, but there is no guarantee. As with all investments in stock market securities, the price risk must be taken into account. From an economic and chart-technical point of view, there is also a lot to be said for a further rise in the price of gold. Investors can profit from an upswing in the yellow precious metal in a variety of ways:

    physical precious metals in the form of coins or bars
    certificates that track the performance of the precious metals in question
    Mining shares / mining share funds (broader diversification can reduce opportunities as well as risks)