All that glitters is not gold
During the euro crisis in 2011, gold experienced an enormous upswing. In the years that followed, the precious metal bobbed along, leading to some chagrin among many an investor who had taken refuge in coins, bars or certificates out of fear at the time.
In fact, it took until 2019 before gold started to attract attention again and finally marked a new high in 2020 with a price of over 2,000 U.S. dollars per ounce.
So should you be investing in gold as a desirable investment? Or haven’t cryptocurrencies long since replaced the precious metal as a “safe haven” and ultimate store of value (see related article)? Is gold more contemporary than ever or just a relic of the last millennium?
The fascination of gold
When you talk to gold investors, you’ll quickly notice the passion and fascination with which true enthusiasts approach the subject. And as is so often the case, when too many emotions prevail, facts are overlooked. Therefore, let’s take an objective look at some facts.
1. Price development
The gold price, like investments in securities in general, is also subject to price fluctuations. As an investor in Switzerland and Europe, whether with the Swiss franc or the euro as the base currency, you run a double risk when investing in gold. Because: The gold price is always calculated in US dollars. Of course, you can buy a bar in CHF or EUR, but then you have in addition to the fluctuation of the gold price also the currency fluctuation as a risk in the deposit. Consequence: If the gold price rises, but your base currency moves in the wrong direction, you may even record a loss. Conversely, your profit can increase significantly due to a rising gold price, but also due to a potential gain in the currency. Be sure to take this special constellation (gold price fluctuation and currency fluctuation) into account.
Unlike stocks (here: dividends) or fixed-income securities (here: interest), gold does not yield regular returns. So the only profit is that you sell your holdings at a higher price than you originally acquired them. However, please note that there is a so-called spread between the buying and selling price, which can be 3-5% depending on the bank or gold dealer. Therefore, compare the current rates and make transactions only with trustworthy houses.
Only invest in truly fungible assets, i.e. those that can be traded at any time. This includes the usual bars, available from 1g upwards, as well as a number of coins, such as Maple Leaf, Krugerrand or American Eagle. However, leave your fingers from any special coins, which are offered gladly in connection with any anniversaries. Often such special coins quickly lose value and are then only resalable with significant price reductions.
If you have acquired physical gold, the question always arises: Where to put it? If you have a safe at home, the gold is reasonably safe, but still exposed to the risk of burglary. Bank safe deposit boxes are a safe option, but be sure to clarify here up to what value your safe deposit box is insured. If the value seems too low, you can upgrade with additional insurance. It goes without saying that this will incur corresponding costs.
As in many other areas of our lives, the virtual world has also reached precious metals. You do not necessarily have to make physical purchases, you can invest in financial products that securitize gold. This eliminates the worry of how and where to physically deposit your gold investments. However, in the case of a securitized product (such as gold certificates), always make sure that
your investment is completely deposited with gold in physical form.
a delivery claim exists, i.e. you have the right to have parts or the complete product delivered in the form of bars.
the costs for safekeeping and, if applicable, delivery are within reasonable limits.
Under a similar aspect you should also see gold savings plans, in which a gold stock is built up through regular payments. Always pay attention to possible commissions or other fees in the fine print to save yourself trouble later on.
If it is not important for you to own physical gold, then an investment in companies that own gold mines in which they mine gold can be an interesting alternative. This is because such shares are closely linked to the gold price and thus you indirectly benefit from a rising gold price. On the other hand, you also bear the risks of such a mining company, such as flooding of a mine after heavy rain, strike of the miners, end of gold reserves in the mine or similar. The settlement, on the other hand, is just as simple as with any other share purchase or sale.
Die goldene Dualität
Sie sehen, auch die Goldmedaille hat, wie vieles andere im Leben auch, ihre zwei Seiten. Letztlich ist es immer eine Abwägung von Pro’s und Con’s, immer eine Frage der persönlichen Präferenz. Für den einen Anleger bleibt Gold ein absolutes must, für den nächsten wiederum ist es ein komplettes No-Go.
Welche Bedeutung messen wir als Vermögensverwalter einer Anlage in Gold bei? Gold stellt zweifellos einen Inflationsschutz dar, Gold ist im Sinne einer breiten und risikogestreuten Kapitalanlage ein valides Instrument und deshalb sind wir auch in unserem Aktienfonds in Goldaktien investiert. Diese Positionen bewirtschaften wir je nach Erwartungshaltung sehr aktiv im Hinblick auf Anzahl und Grössenordnung und steuern damit auch die Gewichtung im Portfolio. Wie immer Sie sich aber entscheiden, wir richten uns gerne nach Ihren Vorstellungen und schaffen für Sie einen massgeschneiderten Rahmen, sprechen Sie einfach mit uns!
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