Physical investment gold has been considered throughout history as a safe way to protect and grow wealth. With its distinctive brilliance and intrinsic value, gold has captured the imagination of investors and collectors for centuries. In this article, we answer some basic keys to investing in physical gold: characteristics and advantages of investing in physical gold, its taxation, how to buy it, how to convert it into money once purchased, where to store it and in what format it is best. acquire it, among others gold ira companies comparisons.
- What is physical investment gold?
According to the Tax Agency, they are gold ingots or sheets of gold equal to or greater than 995 thousandths of 2 grams or more, and whose weight complies with the provisions of the ninth section of the annex to the Law.
Coins that meet the following requirements are also physical investment gold: that they are of a grade equal to or greater than 900 thousandths, that they were minted after the year 1800, that they are or have been legal tender in their country of origin and that are usually sold for a price no higher than 80% of the market value of the gold contained in them. The coins must be included in the list published by ‘The Official Journal of the European Union’ before December 1 of each year.
- Why invest in physical gold?
For thousands of years, gold has been an element that has allowed economic transactions and, as a store of value, it has always been present in humanity. It can also be considered the currency par excellence.
Throughout history, physical gold in the form of investment bars and coins has helped its holders maintain purchasing power over long periods of time. It is one of the few assets that, being physical, remains outside the financial system and acts as a refuge value in times of crisis, conflict and geopolitical instability. For all these reasons, it is a way to diversify and secure assets.
In addition, gold provides stability and liquidity and is insurance for other investments. It can also be considered the currency par excellence.
- How do you buy physical investment gold?
Physical investment gold must be purchased from any accredited establishment with sufficient experience to provide correct advice. In Spain, Degussa, the leading company in Europe in the marketing of physical investment gold, has accreditation from the LBMA, the London Bullion Market Association, which is the most important association of market professionals who operate with gold and silver. of the world. The purchase can be made at its physical headquarters (Velázquez Street, number 2 in Madrid), through its online precious metals store or by phone (91 19 82 900). - What is the best format to acquire it?
All pieces base their price on the gold content they have. However, several conditions must be taken into account:
· For equal weight, ingots are cheaper than coins (due to the cost of the design applied by the Mint).
· In larger pieces the price per gram is cheaper than in smaller ones.
· Buying smaller pieces allows you to undo the investment in parts in the future, selling only the bars or coins that are needed and keeping the rest.
For these reasons, each investor must analyze their personal situation to decide on one or another format.
- Can you pay in cash?
In accordance with current legislation, at this time the maximum amount to be paid in cash is 1,000 euros. If you pay with a bank card, you must ensure that its purchase limit is not less than the purchase amount. - Do you have to identify yourself?
When the purchase is equal to or greater than 1,000 euros, a nominative invoice must be made. However, it is always advisable to prepare a nominative invoice for all purchases, as it is the document that certifies the acquisition.
When making an online purchase, the customer has to send a digitized copy of their ID and indicate their profession, since this business is subject to the Money Laundering Prevention Law.
When it is the client who sells his gold, the seller must always be identified, regardless of the amount of the sale.
- What percentage of physical gold is recommended to have?
In general, it is advisable to have between 5 and 10% of your total assets invested in physical gold, understood as the sum of all assets (money, shares, real estate, collections, etc.). - What taxation does physical gold have?
The pieces considered in the special regime for physical investment gold, that is, those that meet the characteristics explained in question 1, are exempt from paying VAT according to European regulations.
As for personal income tax, it is taxed on the increase or decrease in assets that represents the difference between the purchase price and the sale price and must be applied to the savings base, just like a share or participation in an investment fund.
- Where do I keep it?
As it is a metal that does not deteriorate or rust, it can be stored anywhere, but it is advisable to do so in a safe. Degussa offers its clients a safe deposit box rental service in which they can store not only coins and ingots, but any other valuable personal item, with the option of insuring the deposited contents. - Where do I sell it when I need to convert it into money?
As in the case of purchasing, when you need to sell gold pieces, it is best to go to accredited and experienced establishments, which have specialized personnel and very precise technical means to obtain a fair valuation and price for the objects. . According to current legislation, if the amount to be paid is less than 1,000 euros, it can be paid in cash. For higher amounts, payment must be made through a bank transfer, so it is essential that the client provide proof of bank ownership.
To formalize the transaction, the person selling the gold piece must identify themselves by means of a DNI, passport (in the case of foreigners) or NIE (in the case of resident foreigners).
In Spain, Degussa distributes gold bars and coins of various weights and sizes, within a range that goes from 1 gram to 1 kilo, to provide the best service to customers and adapt to the possibilities of different economies. It also offers the possibility of repurchasing investment products and jewelry or ornaments made of this precious metal. It is accredited by the London Bullion Market Association and in its online precious metals store , apart from being able to purchase its entire product offering 24 hours a day, it is possible to consult, updated every five minutes, the international reference prices of the gold. In addition, it has safe deposit boxes for rent in which you can deposit any object or document with the option of insuring its contents.