How much gold to buy ?

Gold can come in various physical forms, ingots, coins, jewelry, powder or even wire. The purchase of gold, since the 2018 finance law, is no longer attributable to the ISF or the IFI. Furthermore, any purchase of investment gold is exempt from VAT. Thus, you have the possibility of acquiring gold in bars, ingots or exchangeable coins to build up a financial reserve.

However, the tax administration views gold sales with caution. If you want to sell your investment gold, you will need to pay the Flat Precious Metals Tax, which is equivalent to 11.5% of the sale price. You also have the option of choosing the capital gains tax. This choice allows you to have a total tax exemption from the 22e year of holding.

Finally, you can absolutely pass on your gold to your descendants. The rules of succession then apply. In all cases, you must declare the donation to the tax center, to avoid paying additional taxes.

You wish to make a purchase of gold ? Here are the main solutions for purchasing gold gold.

Physical gold

Physical gold is a way to directly own the precious metal. You have the choice between several investment golds:

• gold coins: to be considered exchangeable, the coins must be or have been legal tender, be minted after 1800 with a purity equal to or greater than 90%, and have a premium less than 80%. One of the most sought after investment coins is the Napoleon Franc;
• The gold ingot and the gold ingot: legal purity is 995‰.

There are many sizes of bars and ingots, accessible to all budgets. As for gold coins, you should also pay attention to the current premium, weighted premium and premium difference, which are all indicators of possible leverage.

Finally, physical gold allows capital protection, but is not intended to generate profits upon resale. It’s security.

Paper gold

If you cannot or do not wish to invest directly in a gold product, you have the option of purchasing gold indirectly. The purchase and resale of paper gold consists of purchasing:

• A share: you invest in a gold company. The profits will be linked to the good financial health of the company;
• ETFs, trackers or stablecoins: you hold products that are backed by gold.

Paper gold has two advantages over physical gold:

• Easy storage;
• Larger capital gains.

Conservation of gold is the most important step after purchase. Indeed, storage conditions have a significant impact on the value of products upon resale.

Physical gold requires a healthy and protected environment to guarantee the value of your bars and other Napoleon coins. You can invest in a fireproof safe.

You can also opt for bank or private company safes. They offer the same level of reliability.  However, you must plan an additional budget for security and insurance, which are not always included in the costs.

Contrary to the solutions proposed for physical gold, paper gold does not need a specific storage location. Stocks, ETFs, trackers or stablecoins may be part of your investment portfolio. If you opt for digital currencies, a digital vault or secure key may be required.

Diversifying an investment portfolio is one of the keys to avoiding significant losses in the event of a crisis.

Determine your objectives

Investment in physical or paper gold must meet a diversification objective. Indeed, gold plays the role of a safe haven. It thus allows you to protect your other investments in the event of crises or losses due to difficult economic conditions.

This is why you must first determine your objectives. Is it security ? Profitability ? These questions allow you to choose the investment amount, generally between 5% and 10% of your portfolio.

Investing in gold

Investing in gold therefore responds to a certain desire to protect and secure one's investments. To best help you choose the amount of gold in your portfolio, you can use the Ponzi pyramid to help you. It allows you to see what percentage of your assets can be invested in real estate, life insurance, stocks and gold. For more information, Gold Union teams can help you better understand current gold markets and prices. 

You can now make an appointment at one of the Gold Union agencies to find out about the entire range. Our employees specialized in the purchase of gold bars adapt to your projects! For your convenience, our advisors are also available via our e-commerce site.