Unlike interest-bearing investments or shares, pure precious metal investments do not offer any current income. The yield lives solely on the price developments. In times of low-interest rates, this classic disadvantage of investing in precious metals has been put into perspective, but it still exists. Precious metals can offer possible stability of value and the possible “real” value retention, especially in the long term, but there is no guarantee of this.
Precious Metals As An Asset Class In Augusta
It looks completely different when gold is to be added to a portfolio. Then there’s gold -or real estate. Modern portfolio theory has shown that precious metals in an optimally sorted securities portfolio can cushion price slumps in times of crisis.
We at Augusta have always been forward with the idea that anyone who buys precious metals as an investment can do without physical availability. Rather, he should buy gold or silver as cheaply as possible.
Banks have been offering so-called ETCs (Exchange Traded Commodities) for several years. They are a good alternative to physical gold or are debt securities with which investors acquire a right to the precious physical metal. However, ETC is exposed to issuer risk. If the issuer files for bankruptcy, if the invested money were all the precious metal physically deposited, the security will retain its value even if the issuer goes bankrupt.
When making an investment decision, it should also be noted that precious metals are traded in US dollars. This adds a currency risk. It, therefore, makes sense to purchase currency-hedged ETC. Gold ETC’s annual fee is 0.3% – the price of the bond shell. Another 0.3% must be calculated for the currency-hedged variant.
Buy Coins Or Bars?
Coins are more beautifully decorated, harder to counterfeit, and better suited as a crisis medium of exchange. Bars have slightly lower surcharges on the material price, usually come with a manufacturer’s certificate, and there are more weight classes.
Here at Augusta, we think it would be better to buy ten 100-gram gold bars than one kilogram of gold. The difference in minting costs is very small for bars of this weight class. In addition, medium-sized bars can often be sold at a lower discount because dealers seek them. For silver, we recommend coin bars: they are only taxed at around 7 percent instead of 19 percent. So you save 12 percent tax compared to normal silver bars.
Where Is The Best Place To Buy Gold And Silver?
Augusta offers you precious metals of the best quality at fair prices and, of course, with safe shipping. But you probably won’t make a mistake going to your house bank. One disadvantage: You will probably pay more at the house bank than at an online retailer. Also, ask critical questions to determine whether the bank advisor has dealt with precious metals in more depth.
Augusta Precious Metals Review
In conclusion to this review of Augusta Precious metals we believe the are one of the most trusted precious metals companies, they are multi award winning, a BBB accredited business, honest and reliable with a great track record in delivering Gold, silver, platinum and palladium at reasonable prices. They also specialise in Gold and Silver IRA to help you diversify you retirement portfolio and protect it against inflation or volatility in the stock market.
Augusta Precious metals do an excellent gold and precious metals guide which you can request at no cost to yourself and with no further obligation or commitment. To request the guide click the image below.
