Today, everyone understands the importance of investing finances in order to protect them from inflation and make a profit instead of putting them in a “little box.”
However, what exactly should an ordinary investor invest in - buy shares of successful companies, invest in real estate, make a profitable deposit or buy gold? The answer from the experts is that gold will be the foundation of your successful financial growth.
In this case, you are guaranteed to save your funds and gain confidence, because the use of this investment method has been known for thousands of years.
There are many options for how to invest your money in gold: you can buy gold bars, open a metal account, you can also invest in gold options contracts or purchase a Perth Mint certificate, and you can also buy bullion coins.
There are also many companies that offer precious metals - you can buy gold at a large bank, there is also the State, gold coins, and various private companies.
The most popular ways to invest in gold
The most popular investments in Russia are:
- Anonymized metal account. You can purchase gold, which is subsequently stored in your account and is impersonal. This means the absence of any physical characteristics, including the gold bar number, manufacturer and condition. As the owner of the account, you can withdraw from it the gold bars themselves and the amount at which they are valued at any time.
- Gold measuring ingot. In this case, either you yourself can bring your own gold bars to the bank, armed with all the papers, or you buy the bars directly from the bank. They are subsequently stored in a bank safe.
- Collectible coins.
- Investment coins.
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How I bought gold. Stories of an Idiot Investor 3
Disclaimer: This is not an article by a precious metals expert. My material is about how a small private investor thinks when faced with gold.
First, a few sketches.
I recently visited the Diamond Fund exhibition. Haven't been since school. There is a huge collection of ingots and nuggets. Be sure to go, it's truly mesmerizing. Even those who are indifferent to gold.
To get there, you need to stand in a half-hour line at the box office. There are many women, elderly people and tourists from Asia in the queue. During the excursion they stand at the shop windows. I'm a little to the side, studying their faces. The ladies whisper to their companions and ask to buy jewelry. Old people react to the exhibits with loud exclamations. And foreign tourists just stand there with their mouths open.
Another sketch. I was once sitting on a forum. One of the local old-timers was busy buying scrap gold. I used this money to buy one-room apartments. Over the course of two decades, I managed to save up enough for 6 apartments in this way. Interesting strategy. Once a year I go to that forum to visit a colleague. Everything is still the same for him. Calculates the price per square meter in gold, compares the stock market with gold charts, etc. He's clearly having fun and comfortable.
What do these people have in common?
- Blind faith in the value of gold.
- Emotional attachment to the investment object.
- Hobby . They are very similar to numismatists.
- The desire to show off . That is, a demonstration of wealth.
I admit that a few years earlier I, too, succumbed to temptation. And he began to “invest” in gold. But they “caught” me doing completely different things. I stumbled in fear.
What prompted me to buy gold:
- Fears . What if the dollar is abolished? What if there is a war tomorrow?
- Various stories. Return to the gold standard, depletion of gold reserves.
- Absorption of useless literature , which very cleverly disguises itself as investment literature.
Selecting a tool
They changed the firmware for me. All that remains is to choose a storage form.
I chose intuitively and spontaneously. I was in a hurry for some reason. Probably preparing for nuclear winter. Or what were they afraid of then? I do not remember exactly.:)
OMS (an impersonal metal account) was not suitable for me due to distrust in banks and large spreads. We also had to immediately abandon the ingots. Losses of 18% on VAT. The secondary market is scary... suddenly they’ll throw you away.
I was choosing between scrap gold and bullion coins. The crowbar seemed incomprehensible to me. I didn’t really want to meet hucksters and pawn shop workers. I settled on coins.
First I contacted Sberbank.
Saw some crazy spreads there. I started looking for alternatives. It turned out that in Moscow only 2-3 companies are able to provide me with intermediary services - “Derzhava” and “Golden Coin House”. An exciting adventure
I arrived at the “Derzhava” office. Paid in cash. The bearded guy gave me a decent-sized bag. I took him home. The first couple of days I pulled out coins and licked my lips at them. I showed it to my children, friends and relatives.
Then the adventures began. I found forums and communities of eccentrics just like me. There, people in white gloves told interesting things. I will list the most interesting of them:
- When buying coins, no one thinks about storage. As a result, most people keep their homes haphazardly. More advanced ones keep coins in a safe and set an alarm. Someone places it in a safe deposit box. Someone buys a special tube and buries it in the country.
- Under no circumstances should coins be removed from the capsules. The slightest scratch and you will have to throw away the coin with a discount of 10-15% or more.
- No one really explains how to buy gold for a large amount. Even a million dollar bag weighs a fair amount and takes up a lot of space. But what about those who are going to spend a large sum of money?
- Russian coins are not very popular abroad. Therefore, taking out savings “in shorts” in the event of social upheavals and then selling them is not a good idea.
- The favorite story of the “coin-makers” is the spots on the Victorious. This myth has long been debunked. But people still value Moscow coins higher. And they ignore coins produced by the St. Petersburg Mint.
Today those “bitten” by gold took to YouTube.
Here is an example of such a community. Take a look at your leisure. Just be careful with your psyche www.youtube.com/channel/UCfvlB_OW246s7x17RhD-IaQ On my way out
I spent six months in coins. They even went up in price a little. But the fear of losing them (physically) began to become quite annoying.
I decided to sell. Did it without problems. Purchased upon request the next day. The spread wasn't very big. They gave me a piece of paper about the sale.
They didn't really explain the taxes.
It seems they say that they themselves do not report anywhere. But you need to declare profits. I can only note that owning a coin for more than 3 years exempts you from personal income tax. Paper gold
How was it necessary to buy gold in the first place? I turned on logic. I needed to find a tool that would provide the following capabilities:
- Quickly jump out of the metal.
- Own gold with minimal costs.
- Avoid large spreads.
- Owning gold is safe.
- Pay minimal taxes or not pay them at all.
If I had spent at least a month of my life analyzing it, I would never have gotten into “live” metal. The range of tools turned out to be extremely wide:
- FXGD ETF. The simplest and most understandable. Pros: Any investor can buy. Disadvantages: high commissions compared to Western counterparts.
- Gold ETFs from market monsters - IAU and GLD . The most liquid, convenient and inexpensive instrument. Buying is a little more difficult. Either through a US broker or obtain KVAL status.
- Gold mutual funds (Sberbank, etc.). Insane commissions.
- Contract GLDRUB_TOM (1 lot - 10 g of gold). Not very clear to the average person. Not all brokers have it.
- Gold futures. Not suitable for long-term investors.
And so I bought a paper analogue of gold - one of the bourgeois ETFs. I didn’t feel any joy. Why? Yes, because those factors that I mentioned at the beginning of the article have disappeared: emotionality, numismatic passion, faith. No adventures for you. I was left with a line in the terminal and a boring entry in an Excel spreadsheet.
Why is this very good?
Because I returned to the correct state of an investor - the absence of falling in love with my assets. Why this is bad - read below. Reverse flashing
First, I arranged a psychoanalysis session for myself. I wrote out all the horror stories and worked with them:
- What if there is a revolution and a change of system . In this case, I will need cash, a passport and a plane ticket.
- What if banks stop working ? Just look at our history and neighboring countries. In such a scenario, I would also need a solid cache.
- What if there is a war ? Ask the residents of Donetsk. What was valued at that moment? My wedding ring or a year's supply of stew? Think about where and with whom would you exchange your gold scrap?
Then I included the logic:
- Can something that does not generate cash flow be called a full-fledged asset?
- Gold is a hedge against inflation. But stocks and real estate perform the same function. In addition, they can generate dividends and rent.
- Gold is a protective asset in a crisis. A protective asset in the event of a crisis can be either cash or short bonds. And the crisis itself may follow such a scenario that all assets will fall into the abyss.
- Will faith in gold last forever? An entire generation of the gold standard is now dying. Young people generally do not understand what kind of entity this is.
There are no arguments left in favor of gold. I sold it without regrets. And I never returned to this instrument.
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Types of coins
Names of coins such as “commemorative”, “investment” and “collectible” can confuse a person who does not have this knowledge. What types of coins are there and how do their types differ?
In fact, there is not a single legislative document that would confirm that this coin is a collectible or investment coin.
The Derzhava company presents the gold chervonets “Sower” - it is an investment item, but can be a collector’s item, adding to any collection. Likewise, both commemorative and collectible coins, the issue of which was dedicated to a specific event, are investment coins.
A number of specific differences
Thus, among the distinctive features of coins, one can highlight the quality of workmanship, which is determined by the manufacturing technology. Investment coins are minted in “uncirculated” quality, that is, normal quality, and collectible coins are made in a higher quality “proof” or “prooflike”.
An important difference is also whether a given type of coin has artistic value - collectible or commemorative coins have artistic value, unlike investment ones.
The next difference is in the circulation of coins: investment samples, as a rule, come out in large quantities, while the circulation of collectible coins is limited.
Commemorative coins got their name in honor of some memorable dates to which they are dedicated, they have their own legend, this is where they differ from coins for investment purposes - they do not have a legend.
Depending on the collection value of coins on the numismatics market, the cost of the commemorative coins themselves may increase, while investment coins depend on the cost of the precious metal from which they are made.
No matter what, purchasing investment coins will be the safest way to invest money in gold. In addition, such a coin will be an excellent gift.
Advantages of investment coins
Let's talk separately about the advantages of this type of coins as investment ones. All transactions performed with coins, in accordance with the provisions of Article 149, Part 2 of the Tax Code of the Russian Federation, are not subject to value added tax, from which gold bars are not exempt.
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Also, the coin is the most liquid financial unit, compared with the same gold bars. Banks are usually not so picky about how a coin looks, unless you are a collector. And if you have collected a collection of coins, it will be valued according to the rules established in the numismatic market.
Today, both types of these coins can be purchased at any bank in Russia, or purchased from a private company. They appeared in Russia not so long ago, but some have already established themselves well and acquired a good reputation.
But still, why do depositors and collectors purchase coins from private organizations and not from banks, especially if the cost in a private company is higher than in a bank?
Private organizations value every client and marketers are constantly working to improve the service for their clients: creating useful and profitable services, adding pleasant bonuses. Regular customers are valued and there are usually special conditions for them. In addition to the service, the range is often updated here, so everyone will surely be able to find what they are looking for.
The leaders were such organizations as “Derzhava”, “MosDragMet”, as well as “Golden Reserve”. “Derzhava” appeared first and today is considered a promising and serious company.
The product range of this organization is very diverse. Here you can find investment coins - Russian, USSR, foreign. Also on display are commemorative coins, VIP coins and examples of Tsarist Russia.
There are both gold and silver coins, and you can also buy a gift set of coins and all the necessary things to care for your coins.
It is already clear that gold is the best choice for investment. But the next important step on the path to a profitable investment is finding the best investment for your valuable investment.
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This also applies to the place where the investment is made - you can do it in a private organization, bank or pawnshop. Based on the above, it also follows that investment coins are a worthy financial asset and a profitable investment.
Legislative nuances of transactions with “Power Gold”
about “Power Gold” are usually positive. However, lawyers consider it necessary to take into account the status of the organization. To open an LLC, an authorized capital of 10,000 rubles is required. This is stated in the Law “On Limited Liability Companies” of 1998, number 14.
In the event of bankruptcy or failure to fulfill obligations, 10,000 becomes the amount that the LLC can be withdrawn for the benefit of investors, even if the case is taken through the court. A bonus may be the sale of office property, but, as a rule, the property is a chair, table and computer. Premises are rented, not purchased. Expensive furniture and accessories are not installed in offices.
It turns out that the “Derzhava” gold rate is profitable, but the consequences of a possible closure of the company are unfavorable. Since it has been in business for 6 years, it is clear that the company intends to operate honestly. The director's contact information and name are not hidden online.
Alekseev Igor Vladimirovich is also the General Manager of Troy Standard. This company also engages in the purchase and sale of investment coins. On the one hand, several organizations in charge indicate a stable financial position. On the other hand, some companies can serve as a safety net in case others close.
