Gold - long-term investment value!
Gold belongs to the precious metals group, it is one of the heaviest and is characterized by its resistance to chemical influences.
In many countries, gold serves as a monetary standard and a guarantee of purchasing power. Two thirds of the world's gold reserves are in the form of gold coins and gold bullion in bank vaults. The gold base of money, or the gold standard, is a form of monetary system in which the nominal value of the issued money is limited to a certain amount of gold.
Throughout history, there have been three basic forms of this system in theory and practice:
- Gold coin system, which involves the issuance and circulation of gold coins of a certain nominal value.
- A system of gold bullion that does not involve the issuing and putting into circulation of gold money, but the coverage of the issued money is guaranteed by the possibility that at any time interested holders of money can exchange the same for gold bullion at a fixed, predetermined price.
- A system of gold exchange that does not involve the issue of money or the possibility of direct and guaranteed exchange of the same for gold bullion, but is based on fixing the exchange rate of one currency for the currency of another country that issues money with a gold backing.
History confirms the importance of gold, although there is actually very little of it, the resources for production are very limited, making production not at all cheap.
Why invest in gold
Due to constant printing and ubiquitous inflation, paper money loses value. The US dollar has lost 98% of its value, that is, purchasing power since 1913, while the value of gold has increased 60 times over the same period (measured against the US dollar).
Investing in gold is one of the most profitable investments, as its value remains conserved over time. This is supported by the fact that gold is the only currency that has been maintaining and increasing its purchasing power for over 5000 years.
Investment gold makes it possible to secure and store the value of money outside the traditional financial system, providing protection during adverse market conditions or in other crisis situations. Although storing money in this way does not provide a guaranteed interest rate, making money on gold is possible, even certain, precisely because of the limited quantities in circulation as demand continues to grow. Increased demand and limited quantities, as well as the fact that gold is exempt from sales taxes, make trade easy and fast. While gold has real value, ensuring a more secure future without unpleasant surprises, the diversification of investments is an additional measure of protection against potential and unforeseen risks.
In times of financial turbulence, while recognizing the fragility of the global system, a wise and prudent decision involves the protection of funds through the physical preservation of the value of money, in the form of gold, outside the banking system.
Gold - the currency of the future!
Gold is the most liquid form of property. Its price is known at all times and can always be converted to money without waiting. The protection of the purchasing power of money is the basic useful value of investment gold.
Exclusive possession of gold in the physical sense can be a one hundred percent guarantee that the gold really exists and is your property.
The price of gold tends to rise in the future. The reasons for this are:
- The amount of gold in the world is limited,
- The value of gold is concrete and known at all times,
- Investing in gold suitable for risk diversification and,
- Gold ownership is an inflation insurance policy.
Purity of gold is expressed in carats. Pure gold has 24 karats (999/1000; ie 99.9%) and is considered investment gold and as such is of strictly guaranteed weight. Investment gold is produced exclusively in the form of Investment bullion, coins and ducats, but gold jewelry can by no means be considered investment gold. Investment gold bars are made in grams of: 1g, 2g, 5g, 10g, 20g, 50g, 100g, 250g, 500g and 1000g of 999.9 quality gold, namely 24k gold.
Investment gold is considered to be:
- Gold in the form of bullion or tiles, a mass accepted in the precious metal market, having a fineness equal to or greater than 995 thousandths (995/1000),
- Gold coins of a degree of fineness equal to or greater than 900 thousandths (900/1000).
Bullion is the traditional way of investing in gold, which is preferred because gold in physical form has higher liquidity, can be sold anywhere at any time, is a part of property that is easily transferable and indestructible.
Bullion normally has certificates proving they have been made by reputable investment gold producers. All products have an impeccable reputation and a guaranteed physical integrity.
Since January 1, 2000, EU-wide investment gold has been exempt from value added tax and has been expanding ever since.
The Law on Amendments to the Law on Value Added Tax defines the concept and special procedure of taxation for the marketing of investment gold, including prescribing tax exemption for the import of investment gold.
In Serbia, interest in investment gold has been growing rapidly since April 1, 2018 when the obligation to pay VAT was abolished. Also, no tax liability arises when exchanging for money, which indicates that there are no hidden and subsequent costs. Every serious gold trader will ask you some specific questions, after your intention expressing to buy, in order to determine your needs as accurately as possible. Apart from the amount you want to invest, your experience in buying precious metals is an important part of the purchase - whether you have already invested in gold and in what forms have you been buying it. The answers to these questions guide you to the right choice of gold bullion. Our team will expertly advise you and answer your questions in a non-binding and free conversation.