Physical gold acts as a safe haven and a diversification asset and investors often use it to protect their portfolios from banking risks, the harmful effects of inflation, the accumulation of government debt or a reversal of the financial markets.
Gold has retained its acceptability as a medium of exchange and its appeal as a store of value throughout the centuries. It has held real and symbolic positions of prime importance to humanity since time immemorial. It is frequently mentioned in the Old Testament and drew explorers to unknown lands throughout history.
The yellow metal remains the ultimate representation of the best (the Olympic gold medal) or exclusive (the wedding ring). While 50% of all gold extracted from the earth today is transformed into jewelry, 40% of it is destined for the investment market. Gold appeals to all age groups and social classes.
Finally, even after the end of the gold standard in 1971, central banks around the world retained the bulk of their gold reserves to maintain their credibility and that of their currencies. Today, central banks continue to buy gold in large quantities, which is an important supporting factor for the precious metal.
Gold for investment purposes is refined and transformed into bars or coins. The gold bar is the format of choice for investors due to its low premiums. Each bar is stamped with its weight, fineness, refiner’s seal, and unique serial number.
Gold bullion coins have special characteristics which translate into higher premiums. They are issued each year by government institutions in limited quantities and are legal tender in their countries of origin. However, their precious metal value always exceeds their face value by far. There are also coins without face value because they are issued by non-governmental entities. They are commonly known as 'rounds' and generally have a low numismatic value, and therefore a low premium.
All our gold bars are produced by LBMA certified refiners such as Valcambi and Credit Suisse. They have a guaranteed fineness of 99.99% pure gold (.9999). You can also buy magnificent gold coins such as the 1 oz Britannia, the 1 oz Maple Leaf, the 1 oz American Eagle, or the 1 oz Philharmonic.
The choice of the product type is crucial to any successful investment in precious metals. It depends on your investment goals, the planned investment amount, the desired liquidity and also the applicable tax regulations in your country of residence.
Coins have the main advantage of being divisible, although it is important to have some basic notions of numismatics before buying them because even with equal weight, they don’t necessarily have the same value. The purchase of small bars makes it possible to invest in several tranches and to partially resell your stock in the event of an urgent need for liquidity. Finally, the acquisition of large gold bars allows you to benefit from lower premiums and to maximize the number of ounces you can buy with your investment.
The quantity purchased also affects the premium, which is reduced considerably if you buy several bars or coins. GoldBroker.com offers commissions (premiums included), which are adapted to the total investment amount.
The issue of storing your gold coins and bars is critical. There are several options such as storage at home, in a bank, or with a third-party company, but they do not all offer the same security guarantees.
For optimal protection and long-term holding, GoldBroker.com offers a storage service in your own name and outside the banking system. The vaults are managed by Malca-Amit, an independent company specializing in the safekeeping of valuables goods. As the sole owner of the precious metals, the client has direct access to the secure vaults for stock inspections or withdrawals. The stored products are insured against all risks by an internationally renowned company.
As a safe haven, gold is considered a more secure savings solution than the various "paper" currencies.
While it is recommended to buy gold as a long-term investment, rising prices or the urgent need for liquidity encourage some gold holders to part with their bars or coins earlier than expected. But be careful, before selling gold it is essential to choose a solid intermediary and to find out about the applicable taxation in your country of residence.
GoldBroker.com offers a gold buyback service (within 2 working days), exclusively reserved for clients who store their products in the vaults of Malca-Amit. The precious metals kept in the storage units have never left the professional logistics chain and thus retain their maximum resale value.
