Gold has undoubtedly become the star investment of recent years. Many individuals and businesses buy and keep a few grams of gold, gold-minted coins ( napoleon gold, louis gold, etc.), and even gold bars in their safes. Why? Because gold appears today as an ideal financial investment for building up savings. Better: it even allows you to generate some income as part of well-thought-out wealth management. We tell you everything about the interest in saving gold.
Gold, an investment to know
Today, gold can be considered an investment in its own right. It has many advantages (and very few disadvantages) and allows you to make great capital gains in wealth management. We take stock of the advantages of investing in gold.
The benefits of gold as savings
Gold has a major advantage: today it is a haven that does not depreciate easily. Indeed, gold, unlike other securities (real estate, financial, etc.), suffers very little (if at all) during stock market crashes, recessions, or economic crises. It is for this reason that it is called a haven: it is a stable asset, which is sure to generate a profit when it is sold.
For this reason, gold is a particularly attractive financial investment for building up long-term savings: it does not lose its value. On the contrary, even during economic slumps, its value continues to climb.
The various economic crises experienced by the world economy in recent years only confirm this status as a haven. Since the beginning of the 2000s, the value of gold has increased sixfold … and the highest values were reached at the height of the economic crisis of 2011.
A partly tax-exempt metal
In addition, gold is a particularly interesting investment from a tax point of view: it is a metal that is only slightly taxed by financial institutions and States. As a result, gold is exempt from purchase taxes.
Similarly, the resale of gold benefits from relatively low taxes. These are the flat tax on precious metals at 11%, as well as the capital gains tax at 36%. This latter value-added tax benefits from an exemption of 5% per year. As a result, if the metal has been held for more than 22 years, the value-added tax is, therefore, nil which makes it an ideal metal for saving over the long term.
Better: gold escapes the declaration of property wealth tax (which replaced the wealth tax – ISF).
Physical gold and wealth management
For all of the above reasons, gold is an ideal investment. It can be integrated into wealth management to generate income from property owned.
The place of gold in wealth management
Gold can quite take a place of choice in wealth management. Moreover, many specialists cite gold as one of the three pillars of a successful wealth strategy, alongside real estate and business creation.
Gold, in this way, allows you to diversify your investments. Investment or savings gold makes it possible to possess, in a certain way, a heritage outside the banking system whose value will only increase, even in the event of a hard blow. Its quality as a haven makes it a particularly reliable investment.
For this reason, investment in gold can represent a small part of the wealth (around 5 to 10%). It is, in a way, insurance. In the same way, part of a company’s cash can be invested in gold, to take advantage of its tax advantages.
The advantages of physical gold compared to paper gold
To enjoy all the benefits of gold, it must be physical. Under no circumstances should it be “paper” gold. Paper gold represents and designates gold purchased in the form of a contract on the stock exchange. These contracts are also called “trackers”. These are financial products that reproduce the performance of gold, which makes it possible to speculate on the precious metal.
Yet physical gold is the only type of gold to fully offer its holder its safe-haven attributes. Indeed, physical gold, unlike paper gold, is outside the banking system. Paper gold, on the other hand, is comparable to an action… and therefore has the same disadvantages.
Because of this, the only gold you should have in your savings portfolio is physical, whether in the form of bars or coins.