Investments in precious metals. How to make money on gold, silver, platinum..?

Investors typically view precious metals as a defensive asset. By purchasing gold and silver, they seek to hedge against a fall in the value of stock market instruments, as well as the national currency. options for investing in precious metals - from direct purchase of bullion to alternative ones - purchase of securities of mining enterprises.
From this article you will learn:

1. Features of investing in precious metals
2. Pros and cons of investing in precious metals
3. What kind of profitability should you expect?
4. How to diversify a “metal” portfolio?
5. Investment options in precious metals
6. Alternative ways to invest in metals

Features of investing in precious metals

• Gold is always in price, especially physical gold. Demand for it remains at all times, so it can be confidently called a liquid asset. Bullions made of precious metals can always be sold quickly and profitably. Moreover, during times of crisis, governments and large investment funds look for salvation in gold and begin to actively buy it - quotations of precious metals are rising. Over the past 10 years, gold has risen in price more than 4 times. Considering that it is traded on world markets in dollars, when the ruble weakens, the investor’s profitability increases even more.

  
  Gold price growth chart from 2000 to 2021

• Silver is more volatile due to its lower price and wider use compared to gold. It reacts quite sharply to news, and is more susceptible to outside influences and “storms” in the markets. Therefore, prices for silver rise faster, but also fall faster than for gold.
• If you buy bullion silver, you will have to pay attention to the costs of its maintenance - the metal darkens over the years.
• Platinum and palladium prices mainly depend on industrial demand. Both of these precious metals are used in the automotive industry, computers and gadgets. For example, in 2021, due to the active growth of the Tesla company, which produces electric cars, the engines of which use a large amount of palladium, quotes for this metal increased by 50%.

All these points should be taken into account when planning your investments in precious metals.

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Peculiarities

Making money on gold has its own unique features. Experts claim that this method of investment brings about the same profit as real estate. In fact, this means that you should not expect fabulous profits instantly.

Gold does rise in price, but this happens over a long period of time. As a rule, this metal is actively purchased when they want to protect their own savings from the impact of economic crises.

In Russian realities, the question is especially relevant: “How to make money from gold?” Citizens are almost constantly in an unstable economic situation. That is why they have to actively look for ways to invest funds so that the accumulated capital does not melt away under the influence of ever-increasing inflation.

So, let's find out how to make money from gold.

Pros and cons of investing in precious metals

The main advantages of investing in precious metals are:

• high liquidity – both bullion and investment coins are quite easy to sell and buy;
• the price of metals rises during crises, which protects against losses on other “fronts”;
• the price of gold is rising in dollars, which makes ruble investments even more profitable;
• low entry threshold - literally 1000 rubles are enough for investment;
• you can diversify within a “metal” portfolio;
• There are different ways to invest in precious metals - buy bars, investment coins, shares of mining companies, or open impersonal metal accounts.

But it is necessary to note the disadvantages of investing in precious metals:

• gold itself does not generate income, like, say, a deposit or bonds;
• during periods of stability, prices for precious metals fall or freeze;
• not all assets are liquid - for example, assets on compulsory medical insurance can only be sold in the bank where they were purchased;
• bars and coins need to be stored somewhere and taken care of (for example, silver quickly tarnishes and its price drops), and this is an additional expense;
• When selling bullion, you will have to pay not only personal income tax, but also VAT in the amount of 18%.

In short, without proper experience and accurate calculations, investments in precious metals can bring losses instead of income.

How to invest in gold for an individual

It is generally accepted that investing in gold

- these are the privileges of large players in the financial market, however, in reality this is not the case. Today there are a large number of opportunities for individuals to invest small amounts in this stable and reliable metal. We will try to talk about each of these methods.

Ways to invest money in gold:

• Buy gold in a bank (Unallocated metal accounts)
• Buy gold bars in a bank
• Trade gold on financial markets with the help of a broker
• Invest money in gold coins
• Invest in shares of gold mining companies
• Buy jewelry and antiques
• Electronic money

Let's analyze each of these methods in detail, find the most profitable one and determine whether it is worth investing in gold today.

Gold price chart

Buy gold from a bank at interest

For those who do not know how to buy gold in Russia, there is an official offer. You can buy gold at Sberbank, VTB 24, and Alfa-Bank

. These banks offer the most favorable conditions and occupy leading positions in the domestic market.

How to buy gold in a bank

Sberbank, for example, has been working with impersonal metal accounts since 2002. During this time, many investors managed to use the services of a financial institution. Some even managed to double their capital.

The bank works with both accounts and physical gold.

At Sberbank, time deposits for compulsory medical insurance range from a month to a year. Annual interest does not exceed 5%, but on average will range from one and a half to 2% for longer-term deposits, and 0.5-1.5% for short-term deposits lasting less than 6 months.

• At Sberbank, to open such an account, you need to buy from 50 to 100 grams of standard metal at least; you must admit, this is a considerable amount for most.

• The working conditions of Alfa-Bank and VTB 24 are very similar to each other. These financial institutions have much fewer branches throughout the country than Sberbank. But problems, as a rule, do not arise. Even for small investors, information is provided on how to invest in gold. Alfa Bank offers physical purchase of precious metal or opening an account starting from 1 gram.

Below is a table with the conditions for bank deposits in gold at interest:

You should not take the data literally as the numbers provided are constantly changing and perhaps the next day after writing this information is already out of date.

But in general, it becomes clear what to focus on and whether it is worth investing in gold at interest in Sberbank or others.

Unallocated metal accounts (OMS)

How to safely invest in gold?

When using this method of investing in gold, an agreement is concluded with any bank of your choice to create an account in which grams of gold

.

Since this investment method for individuals is not subject to deposit insurance, it is better to invest money in proven and reliable VTB24

and
Sberbank
- this will reduce investment risks.

When concluding the agreement, you receive a copy in your hands and can withdraw all the gold from your personal account at any time and pick it up (in this case you will have to pay a value added tax of 18%). This type of investment does not involve paying a commission either for the purchase of metal or for servicing your account by the bank.

Compulsory medical insurance, as a rule, can be replenished. The bank will automatically “add” grams to the existing gold and foreign exchange savings, making the necessary conversions at the current internal rate. The return on compulsory medical insurance consists of the percentage of the deposit (for a fixed-term deposit) and, of course, the increase in the exchange rate of the precious metal itself. When converting “gold” for compulsory medical insurance into money, VAT is not withheld.

Account with unallocated metal

has maximum flexibility. The opening procedure includes signing an agreement and paying the amount of money specified in it. The period during which the deposit is valid, the mass of gold purchased, the price of the precious metal at the time of purchase, and the conditions for closing the account are specified. The depositor must provide a passport and TIN.

It is imperative to clarify the availability and amount of interest on the deposit, since not all banks establish it. It is also useful to find out whether top-ups are allowed and, if so, how. You need to find out whether you will need to pay for account maintenance. According to the law, when opening an impersonal account, VAT is not paid.

Investments in gold bars

This is perhaps the first option that a person thinks about when answering the question of how to invest in gold.

Gold bars

Bank gold bars can only be purchased from large banks authorized to carry out transactions with physical bank metals, in particular, bullion.

For Russia, for example, this is Sberbank, VTB24, Alfa Bank

. Of course, this is gold of the highest standard, available in bars from 1 gram to 1 kg, and the higher the denomination of the bar, the cheaper each gram of gold in it is, and small denomination bars are very rare.

Thus, it is more profitable to purchase large bars, from 100 grams or more, but we should not forget that massive “portions” of gold have much less liquidity, that is, they will later be more difficult to sell without a loss in value. At the same time, there are usually no problems with the sale of gold “trifles”. Therefore, the investor needs to carefully consider which bars from which “weight category” it is more profitable for him to purchase.

Please note that: All bars have their own number, a stamp indicating the denomination, a mark of the plant where the bar was made and a quality certificate. The price of a gold bar should always correspond to its weight, and the precious metal content should be 99.9%.

Remember that when purchasing gold bars you must pay VAT of 18%.

The slightest damage (a scratch, for example) on an ingot reduces its cost if you want to sell the gold. Sberbank of Russia does not purchase gold bars with a missing or severely damaged manufacturer's certificate. Ingots whose dimensions or weight differ from the values ​​​​in the documents are also rejected.

Trading on the financial market with the help of a broker

It is deservedly considered the simplest and most profitable way to invest in gold on the Internet.

- trading on the stock exchange.

When trading gold through a broker, there is no physical purchase of the metal, however, this method of investment allows you to make a profit as a result of both a fall and an increase in the price of gold.

Gold futures and options account for the bulk of trading in futures contracts, the underlying asset of which is the precious metal. These instruments are used primarily by gold producers to protect against the risk of adverse price movements and by speculators attempting to benefit from correctly predicted price movements in the spot market.

Since futures and options are one of the most complex instruments, the easiest way would be the Forex market

, on which metals are also available.

The advantages are: the ability to use leverage, the absence of taxes and the need to store metal, and ease of trading, since only the Internet and a computer are needed to conclude transactions.

I’ll give you a little instructions on how to start investing in gold on the Internet. Let's take one of the market leaders Just2Trade; I have been working with this broker for many years.

1. First you need to register on the broker's official website and open a trading account
   ;
2. Fund your account
   and download
   the MetaTrader 5
   ;
3. In the platform, select gold
   as a tool for work and make your first transaction to sell or buy metal.

• When setting the volume of a transaction, remember that one lot is equal to 100 troy ounces of the precious metal.

Using standard leverage, it would cost about $13 to open the minimum 0.01 lot of one troy ounce. All other funds will be needed to amortize the deposit in case of drawdown.

The advantages of gold trading as opposed to investments are obvious

— you receive profit upon closing the transaction, this can be even after 10 minutes. Trading requires much less money than buying physical gold.

You don't need to go anywhere and make sure that you are buying gold and not an alloy

, since registration takes place online, and you can replenish your account by card or electronic money, the choice of replenishment methods is huge.

In addition, you can always trade binary options on gold, which is obviously the most profitable thing. Here is an example of how I opened a deal with the broker FiNMAX (a branch of the broker for options trading) -

Select an asset - Gold

:

We indicate the option expiration time and forecast. I indicated the time at 14:30 and the forecast for the growth of the price of gold:

The option will close in 12 minutes. If at the time of closing gold costs more than at the time of opening the transaction, even by 1 cent, then I will make a profit.

12 minutes have passed and here are the results, look at the chart where you can see how gold continued to grow according to my forecast:

In 12 minutes I managed to earn $36 in gold:

Investing in gold coins

When you decide to invest in gold coins, remember that they come in two types - investment and collectible.

The purpose of the first type of coins is to preserve capital, and the second type is to collect for history. Collectible

samples initially have a high cost, as they are of historical value and are distinguished by skillful execution. I note that gold coins for collecting are more expensive and their real value can only be determined by an experienced specialist.

How to buy gold coins profitably?

In many countries, the purchase of investment coins is exempt from VAT. Investors can choose from a wide variety of gold coins issued around the world. American Eagles

", "
Maple Leaves
" from Canada, English "
Great Britain
" and many others.

Great! Gold coins rarely fall in value and are very easy to buy and sell.

Precious commemorative or numismatic coins can also be considered an investment. Their value largely depends not on the amount of precious metal in the coin, but on rarity, quality of coinage and historical value.

In addition, there are countless gold coins that already have historical value. Who hasn’t dreamed of having “ Nikolaevsky Chervonets”

"- a gold coin with a face value of 10 rubles of the Russian Empire, which, depending on its state of preservation, can cost fabulous money? And given the historical value, such investments in gold coins can bring huge returns in the future.

Coins that have a collectible value do not fall in value even when the market price for gold decreases, but are sold at a higher (collectible) premium compared to bullion coins.

Rare gold coins have long become very liquid assets - thousands of certified coins are bought and sold on the electronic numismatic exchange. They can also be sold directly to a dealer or at a public auction. A professionally put together collection almost always has the potential to increase in value.

Investment gold coins

Investment gold coins

- these are, in fact, the same small denomination bars, made in the form of a coin. At the same time, there are no special refinements in the design and minting of such coins, therefore, their value tends to the cost of the precious metal. A special advantage of such coins is that no tax is charged when buying/selling them. You can store them either independently (however, you should take care of special capsules or secure packaging) or in safe deposit boxes, and sell them through banks (which have a license for such transactions with gold) or through special intermediary services that allow you to bring together the seller and the buyer together. It is profitable to purchase coins abroad in single copies.

The term of this type of investment must be at least several years to obtain a tangible financial effect.

In order to properly invest money in gold using collectible coins, it is worth understanding at least a little about this or knowing collectors, especially for coins of historical value.

By the way, gold coins can be bought directly from a bank or from a company with banking licenses, for example the same broker Alpari:

Investments in gold mining companies

Another way to profit from rising metal prices is by buying shares of gold and mining companies. Shares of large companies - American Gold Corp, Newmont Mining

, Canadian
Barrick Gold
, British-Australian
BHP Billiton
, etc., are traded in New York.
This can also include shares of Russian or OJSC Polyus Gold
.

However, if a company goes bankrupt or the value of its shares sharply declines, the investor risks losing all the funds invested in them. Therefore, shares should not be considered a protective asset that functions as a financial insurance.

Rather, it is a speculative instrument that can bring good income, provided that the risk and potential return are correctly assessed.

Gold mining companies

The potential for growth in the value of shares is determined not so much by the dynamics of gold prices, but by the financial indicators of the issuing company, which is why it is difficult to say that you make money by investing in gold by buying shares of gold mining companies. But the cost of such shares directly depends on the gold price.

Also, investors have the opportunity to receive not only income in the form of capital gains (as a result of rising market prices), but also profit in the form of dividends

. True, when gold prices rise sharply, companies usually begin to develop low-profit replicas and upgrade equipment that they could not afford during the period of low metal prices. This reduces their profits and, accordingly, restrains the growth of shares.

One of the most productive investment instruments, as well as an alternative to buying physical metal, is gold-backed securities.

. Trading them allows you to avoid commissions for purchasing physical gold, which can reach 7%, and without resorting to risky transactions with futures or options.

Trade in such securities is carried out by the World Gold Council

(The World Gold Council, WGC) on
the London Stock Exchange
(
LSE
), created by a number of the largest gold mining companies.
Each security guarantees the holder the opportunity to purchase one tenth of a troy ounce of precious metal (3.11 g). The gold backing the securities is held in the vaults of HSBC
in London.

Buying gold jewelry

Purchasing jewelry is considered the least promising way to invest in order to increase money, while this is one of the most popular ways to invest in precious metal, since it is enough to go to the nearest jewelry store, choose a piece of jewelry and make a purchase.

The method does not involve obtaining any tax returns or certificates. The disadvantages of this method of investment include a significant loss in the value of the jewelry after purchase and the subsequent difficulty in selling the product at the purchase price. The exception is antiques and jewelry that are of particular artistic or historic value. since over time their value will only increase.

When purchasing gold jewelry, you should keep in mind that jewelers do not work with pure gold, but with its alloys.

The price of a particular product consists not only of the cost of the precious metal itself, but also of the work of the craftsman and various kinds of considerable trade markups, which can increase the cost of such “gold” by 50 percent or even more. Immediately after purchase, the product loses value as it is considered used. You can quickly sell it exclusively as scrap by weight (which is beneficial only in the event of a significant increase in the price of gold on the market as a whole), or you can find a buyer who wants to purchase the jewelry (and far from its original cost in the showroom).

The advantages of such an investment include accessibility, simplicity, the ability to satisfy aesthetic needs and preserve capital in the long term by investing in “eternal value.” No declarations, certificates, red tape (except for antiques and art).

Electronic money

Gold-backed private electronic money Formally, electronic money is a financial obligation of a corporation to pay gold in a certain amount. Among the advantages

electronic money I would like to highlight:

• Possibility to provide loans and pay with them on the Internet;
• High liquidity;
• Anonymity, since electronic payments are not fully controlled by government agencies;
• No storage costs.

Flaws

:

• The reliability of investments depends on the reliability of the corporation that created the payment system;
• The activities of such systems are under threat of government intervention;
• Withdrawing funds into regular currency requires a significant commission;
• There is a risk of becoming a victim of scammers.

For example, we can cite the well-known electronic payment system (EPS) - WebMoney

which has the opportunity to create not only ruble and dollar accounts, but also a gold one -
WMG
.

Although it is difficult to call this a profitable investment in gold, when transferring funds from a ruble account to WMG, the exchange rate will be the exchange rate with an increase in the commission from the EPS, and when you exchange WMG back into rubles, you will also be charged a commission, besides this, the exchange rate is usually not much is overvalued not in your favor, so trading gold on the exchange is a more professional and profitable way.

The most profitable way

Many investors are interested in how to properly invest money in gold to get maximum profit?

Despite the attractive bars or coins, I still believe that buying gold on the exchange is the most profitable way.

By buying gold on the exchange, you can get the maximum benefit not only when the price rises, but also when the price falls, because there you can open transactions not only BUY

but also
SELL
- to sell.

• To get investment income, you don’t have to wait for years; if you read the news, looked at new data on production or production, found the correct forecast using technical analysis - you can earn money within a day and immediately withdraw this money.

Just2Trade suggests using leverage, for example 1:300, which means that instead of $100 in your account, you will trade $30,000. The prospects for making a profit are high, the main thing is not to open transactions at random, but consciously.

Alternatively, you can try binary options on gold futures and get 60 to 75% profit on every successful trade. For this, I recommend the broker FiNMAX, with whom I have been working for several years.

Second profitable option

is an investment in gold investment coins, since their sale
is not subject to VAT
.

Choose not the smallest coins, since the cost of one gram of such a product is quite high due to the high costs of their production. The largest coins may not increase in value, so choose something in between these two options.

• Also, do not forget that coins must be stored very carefully, otherwise the bank may not buy them back.

Another way to avoid paying VAT is an impersonal metal account.

. Since no one can guarantee that gold prices will rise, you should not invest all your savings in this precious metal.

Experts recommend investing 5–25% of your total capital in gold.

Dynamics of gold prices

In the second half of the 20th century, banks actively sold gold, investing in short-term financial projects. The global economic crisis that broke out in 2008 brought everything back to normal. Forward-thinking investors who invested in the precious metal in the late 90's and early 2000's found themselves in a huge winner. Which is not surprising, because if you look at the statistics on the rise in gold prices, you can note not an arithmetic, but a geometric progression of growth:

• 2000
  : 31.1035 grams of gold (troy ounce) cost between US$300 and US$350
• 2010
  : price 1115 dollars
• 2011
  : an absolute record at that time could be observed - the price of a troy ounce broke the mark of $1,771. In other words, in just one decade, the price of gold increased by 590%. At the same time, investors could annually receive up to 60% profit, which no bank deposit or purchase and sale of real estate would provide.

Should you invest in gold now?

Should you buy gold?

Sharp jumps in prices for precious metals, which are usually caused by excitement, and artificially created ones, are not expected in the near future. However, given the specifics of gold, its value will continue to gradually increase with minor fluctuations. This means that investing in gold is nothing more than a long-term project that requires patience but is also a win-win.

An important feature and additional attractiveness is that the initial investment does not require significant one-time costs (in the absence of a large amount). There are several ways to invest in gold, each of which has its own nuances.

About 50% of all transactions related to gold are made when an economic crisis begins in the state.

This is due to the fact that precious metal is one of the most stable instruments. At the same time, the price per ounce never stands still. Gold at one moment can rise in price by 15% or fall in price even more. It is best to invest in precious metal for the long term. It’s worth forgetting about your investment portfolio for 5-7 years. In this case, its profitability will be really high.

Watch an interesting video about the truth about gold and whether it is worth investing in this metal now:

What kind of profitability should you expect?

As mentioned above, gold has more than quadrupled over the past 10 years. However, its growth is largely due to the fall of the ruble against the dollar, and not just the increase in the value of the asset. If the ruble strengthens, the growth in the value of gold will slow down.

However, in general, it is not possible to calculate how much you can earn from metal. Prices for gold and silver are formed due to various factors independent of each other.

Only one thing can be said for sure: if markets prepare for a global crisis, then the price of protective assets, including precious metals and American Treasuries, will rise.

Over the past decade, gold has grown by an average of 4% per year, silver by 6%, and palladium and platinum by 10%.

Palladium price chart from 2003 to 2021

Precious metals stored by themselves do not generate income. The investor can make money only if the price of the asset increases. This also needs to be taken into account.

Buying bullion

This is the most understandable way for most citizens who are interested in how to make money from gold. Theoretically, it is he who should lead among all others and bring the greatest profit. After all, in exchange for money, which is depreciated by inflation, you receive a gold bar, which in the future can be sold profitably.

However, there are many nuances associated with the purchase of physical bullion from precious metals. For example, when purchasing a gold bar, VAT is added to the price, which will soon amount to 20%. When selling, you may have to pay for an expensive examination that can confirm that your bar is actually made of gold. Such additional costs significantly increase the initial cost of the ingot.

In addition, gold is very difficult to store. If there is any damage, the ingot cannot be sold at its original cost; its price will be significantly lower. This is why purchasing bullion is not always the best option for those wondering how to make money from gold.

How to properly diversify a “metal” portfolio?

Experts advise that you allocate no more than 20% of your total assets to precious metals in your portfolio. For example, you might have 40% stocks, 40% bonds, and 20% precious metals. This is necessary to reduce risks and not depend on only one type of asset in terms of profitability.

Moreover, it is necessary to diversify your “metal” portfolio internally, since prices for different types of precious metals move independently of each other. Proper diversification will make you more likely to make money.

Experts recommend the following ratio of investments in precious metals:

• 60% – gold;
• 20% each - silver, platinum or palladium.

It is recommended to purchase when the asset price decreases. That is, it is not necessary to form a portfolio immediately in an unchanged form - it is enough to make purchases as funds become available. The main thing is to achieve the established proportion and then maintain it. If the cost of one precious metal increases excessively, a rebalancing must be done, i.e. sell an asset that has become more expensive and use this money to buy one that has fallen in price.

Shares of gold mining companies

This is a rather indirect way of investing your own funds in precious metals. If the price of gold rises, the shares of the corresponding gold mining companies also rise.

However, it is worth understanding that this method does not involve the purchase of gold. You purchase shares, which entails corresponding consequences. For example, a company may go bankrupt and leave its shareholders with nothing. That is why this method of generating income is not recommended for those who do not have relevant knowledge regarding the stock market.

Investment options in precious metals

Ingots

The most obvious and simple way to invest in precious metals is to buy physical gold or silver bullion. The cost of an ingot is determined by its weight and fineness. The higher the quality of the metal and the greater its weight, the more expensive the purchase will be - but you will also be able to sell it at the highest margin.

Precious metals in the form of bars are the most liquid asset. They can be purchased at any bank and then sold - to the same or to another bank, to other investors, to a jewelry workshop, etc. Physical gold can be used as collateral if necessary.

But this option has a significant drawback: the ingot must be stored in special conditions so that it is not damaged. If there is even the slightest scratch on it, the product will lose tens of percent in value. Most often, bullion is stored in safe deposit boxes, the rental of which can cost a pretty penny.

If you are planning to invest a large amount in precious metals , then bullion is an excellent option, since the benefits from the investment will exceed the costs. However, if you have small savings, it is better to choose other options.

Anonymized metal account

Compulsory health insurance is essentially paper gold. The investor actually invests money in virtual precious metals - the bank contains a record that a specific person owns a certain number of grams of gold or silver.

Compulsory medical insurance quotes change in accordance with the quotes of physical precious metals, so it makes sense to buy paper gold when the value of the main asset falls. An investor can make money by buying metals on an impersonal account at a lower price and selling them at a higher price.

Advantages of the method:

• metals do not need to be stored anywhere;
• no need to pay VAT on sales (only personal income tax);
• Compulsory medical insurance is free;
• the entry threshold is minimal - gold can be purchased from 0.1 grams, other metals - from 1 gram.

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Minuses:

• high spreads - some banks mark up 30-40%;
• no interest is accrued on the account balance;
• funds for compulsory medical insurance are not protected by the DIA, and therefore, in the event of a bank bankruptcy, they can only be returned during bankruptcy proceedings.

It should also be mentioned that gold can only be sold through compulsory medical insurance to the bank where the metal account was opened. You cannot open a compulsory medical insurance at Sberbank and sell it at VTB at a better price.

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Investment coins

Another option is to buy special investment coins. In Russia, most of them are sold at a nominal price through branches of Sberbank and VTB.

Numismatic experts advise giving preference to foreign coins. The most popular ones are American, British, Australian, Austrian, German, Chinese, for example, the Austrian Philharmoniker and the Australian Kangaroo are highly valued on the market.

Foreign coins have a higher gold content because the global coinage standard is the ounce. Russian coins contain only a quarter of an ounce of gold. Therefore, they are generally cheaper, but they can also be sold at a lower markup. The most popular domestic coins are the Soviet “Sower” and the Russian “St. George the Victorious”.

Silver bullion coins are also popular, especially among private collectors. They are an order of magnitude cheaper than gold (since silver is cheaper than gold) and are often purchased as a spectacular gift.

Investment gold coins

In addition to bullion, banks trade investment coins. For their purchase you do not pay 18% VAT - an obvious advantage. The rest is the same as for ingots. Bank commissions and transit costs are very high, which makes this type of investment unprofitable. But do not forget that a coin is not just an ingot; numismatists and other lovers of investing in antiques will be very happy to buy these coins from you in 10–20 years, when they will no longer be sold. Before you invest in coins, you need to decide whether you are investing in an antique or a precious metal.

Alternative ways to invest in metals

If the options for investing in precious metals described above are not suitable for some reason, then you can use alternative methods:

• Acquisition of shares of gold mining companies . There are few of them in Russia - these are Buryatzoloto, Lenzoloto, Polyus, Seligdar and Polymetal. You can buy them through any broker with access to the Moscow Exchange. In addition to the increase in the value of the shares themselves, you can count on receiving dividends, the size of which will depend on the company’s revenue and, in general, on the prices of precious metals.
• Purchase of bonds of the same companies . At the moment, bonds are not publicly traded, but if they appear, they can be purchased to diversify investments. The main difference between debt securities and shares is that bonds have a guaranteed coupon income, which brings them closer to bank deposits in terms of the method of generating profit.
• Purchasing a gold mutual fund . Many management companies, including Sberbank Asset Management, VTB, Raiffeisen, Gazprombank, offer mutual funds that invest in securities of gold mining enterprises and directly in precious metals. In this case, asset management is carried out by professional market participants, and the investor receives income due to the growth in the value of the share.
• Purchasing ETF Gold . There is no opportunity to buy a “gold” ETF through Russian brokers yet. But you can find access to a foreign broker and buy shares of the desired fund through them.
• Options, futures, forex . Particularly risky ones can try to work in the derivatives market, purchasing options and futures on precious metals, or in Forex, making money on CFDs (contracts for difference), but this already relates more to the area of ​​speculation than investment.

Thus, there are many ways to invest in precious metals. The simplest and most effective is buying bullion or investment coins. For novice investors, the option with paper gold is suitable - opening a compulsory medical insurance in a reliable bank. There are also alternatives - you can invest in “gold” mutual funds and ETFs or directly in shares of gold mining companies. Or even speculate on price differences within a day or between days.

Investing in gold through the stock market

The easiest way is to invest in the stock market, here you won’t bother with a real bar or coin, all transactions are virtual, only the profit from them is very real, or a loss if you lose. So here's what you can buy:

• unit of a fund investing in gold and precious metals;
• futures or options on gold.

Whatever you choose, remember that you need to buy at local minimums, to do this you need to buy when everyone is selling and sell when everyone is buying. It is most convenient for a person living in Russia to trade through FORTS. Here you don’t need to transfer your money abroad, bother with paperwork and other bureaucracy. You can always withdraw your funds quickly and easily. The broker acts as a tax agent and pays all taxes. You can start investing with an amount of 50 thousand rubles. Abroad, gold futures are traded daily, but here trading continues as usual. In gold futures, delivery is not made on the expiration day, but the amount is paid to offset all open positions.

So we have looked at the main methods of investing in gold. Which one to use is a personal choice, depending on your qualifications, investment expectations, preferences, risk level and how much money you have. Subscribe to the Hyperion portal and earn not only from gold.

Buying gold

This is an option for those who are ready to open their own business with all the ensuing consequences. Unlike simply buying gold as a means of preserving your savings, you need to be prepared to devote enough time to this matter.

Initial investments will be required for expenses associated not only with registering a business, but also with the purchase of necessary equipment, as well as renting premises. According to the law, jewelry must be stored in a safe. That is why a pawnshop that buys gold must take care of the safety of the property that clients entrust to it.

Profitability

How much can you earn from gold? This is perhaps the most pressing issue for those who are interested in generating income in this way. Don't expect to know the exact amount. Because income is influenced by many factors:

1. The amount of gold you own.
2. Method of purchasing precious metal.
3. Holding period, etc.

Even the economic situation on the market affects the success of the transaction.

Let's assume that you buy gold at a price of 2123 rubles, and after some time you sell it for 2223 rubles per gram. Accordingly, your profit will be one hundred rubles for each gram sold. The more grams of gold you sell, the higher your final profit.

You need to understand that profitability largely depends on the holding period. Do not try to sell the precious metal almost immediately after acquisition and make an impressive profit. Experts say that you need to own an asset for at least four to five years. In this case, the deal may be profitable for you.

It is important to understand that investing in gold is not a short-term profit, but a long-term investment. That is why, in order to obtain short-term profits, it is better for a potential client to consider alternative ways of investing their own funds. However, if you simply want to protect your savings from inflation, buying gold may be the most suitable option for you. In addition, this method can bring additional profit when prices for precious metals rise. Agree, the above reasons are quite enough to understand the topic in more detail. You should not accept the first offer when buying gold.