Buy gold and benefit from the gold price development – that’s how it works!

Gold: deposit security?

Gold has always been considered a crisis currency by investors. Physical gold, i.e. gold bars and gold coins, can complement a well-diversified portfolio – and protect against price losses on the stock markets. Investors who fear a stock market crash or a currency crisis should therefore buy gold.

In principle, 10 percent gold belongs in every well-diversified securities account, because: In uncertain times on the stock markets, gold can be an optimal security for investors. This was impressively demonstrated in the period from 2007 to 2010, for example: After the bankruptcy of the major US bank Lehman Brothers and the ensuing banking and economic crisis, the price of gold climbed by 640 US dollars within three years (January 2007 to January 2010). Troy ounce of gold to nearly $1,100 – an increase of more than 70 percent. For comparison: the German share index DAX collapsed by around 11 percent in the same period.

But gold is more than a crisis currency! Aside from investment purposes, gold is needed in the electronics industry, for optical gold plating, for dental gold and, of course, for jewelry. Gold can also be recycled as often as you like, which is also worthwhile given the high price of gold.

Gold also has the following pragmatic advantage over investments in other precious metals: Due to its high specific gravity, it is possible to store large assets in a relatively small volume.

Conclusion: Those who had well diversified their portfolio at the beginning of the financial crisis were able to significantly mitigate the losses in shares, certificates and other securities thanks to the gold price development.

A notice: Typical investment products such as gold bars and bullion coins are exempt from VAT. If gold investors hold coins or bars for more than a year, any capital gains are exempt from withholding tax.

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