Investing in gold seems like an attractive investment for many people. This metal is gradually increasing in price, which allows you to sell it more expensive than buy. Equally important is the fact that gold is a product that is in demand at all times. Accordingly, there should be no problem finding a potential buyer.
Features
Earning on gold has its own unique features. Experts say that this method of investing brings about the same profit as real estate. In fact, this means that you should not wait for fabulous profits instantly.
Gold is really growing in price, but this has been going on for a long time. As a rule, this metal is actively bought when they want to protect their own savings from the effects of economic crises.
In Russian realities, the question is particularly relevant: "How to make money on gold?" Citizens are almost always in an unstable economic situation. That is why they have to actively seek out ways to invest, so that the accumulated capital does not melt away under the influence of constantly increasing inflation.
So, let's find out how to make money on gold.
Investment Methods
There are many different ways to invest in a precious metal.
- Buying bullion.
- Anonymous accounts.
- Investment coins.
- Shares of gold mining companies.
- Specialized funds.
- Buying gold.
Each of the options listed above has its own unique features and characteristics. Let's talk about them in more detail.
Buying Ingots
This is the most understandable way for most citizens who are interested in how to make money on gold. Theoretically, he should be the leader among all the others and bring the greatest profit. Indeed, in exchange for money that depreciates inflation, you get a gold bar, which in the future can be profitably sold.
However, there are many nuances associated with the purchase of physical bullion from precious metals. For example, when buying, VAT is added to the cost of a gold bar, which will soon be 20%. When selling, you may have to pay an expensive examination that can confirm that your bar is really made of gold. Such additional costs significantly increase the initial cost of the ingot.
In addition, gold is very difficult to store. If there is any damage, the bar cannot be sold at its original cost; its price will be significantly lower. That is why the purchase of bullion is not always the best option for those who are interested in how to make money on gold.
Depersonalized metal accounts
Abbreviated as OMS. This is a worthy alternative to the previous option for those who are interested in how to make money on gold. In this case, you also acquire precious metal, but you do not receive a physical ingot. Purchased grams are stored in a special account.
Formally, you become the owner of a certain amount of gold, but in fact your account is measured in monetary terms, tied to the current rate of gold.
The benefits of anonymized metal accounts are simple and straightforward.
- Transactions with precious metals are not subject to VAT.
- You can make a sale or purchase of gold remotely.
- No need to worry about the safety and transportation of precious metal.
In fact, an impersonal metal account is more convenient than buying physical bullion from precious metals. In addition, this makes it possible to make purchases even for those who do not have impressive amounts. You can buy the amount of gold or any other precious metal for which you have enough own funds at the moment.
In addition, the convenience of an impersonal metal account also lies in the fact that at any time you can sell a certain amount of gold. If there is an ingot, such a transaction will be impossible. Will have to completely sell the ingot.
Investment coins
This is not the most standard way for those who are interested in how to make money selling gold. Its essence is that the Central Bank of Russia periodically issues rare coins. However, it is immediately worth saying that they may be of potential interest to collectors. And then not immediately, but several decades after release, when they will begin to disappear from circulation.
If you turn, for example, to buying gold, there is a high probability that they will offer you a price much lower than the initial cost. That is why such a method of investing in precious metals does not bring significant profit that can interest potential investors.
Gold Shares
This is a rather indirect way of investing your own funds in precious metals. If the price of gold rises, the shares of the respective companies engaged in its mining also rise.
However, it should be understood that this method does not involve the purchase of gold. You acquire shares, which entails the corresponding consequences. For example, a company may go bankrupt and leave its own shareholders with nothing. That is why such a method of generating income is not recommended for those who do not have the relevant knowledge regarding the stock market.
Specialized Funds
Investment funds associated with precious metals are capable of generating greater profits than buying gold. However, this is a relatively new financial institution in the Russian market. That's why it is not suitable for those who are not ready to take risks and prefer to invest their own savings in proven tools.
Buying gold
This is an option for those who are ready to open their own business with all the ensuing consequences. Unlike a simple purchase of gold as a means to preserve savings, you need to be prepared to devote enough time to this business.
Initial investments will be required for expenses associated not only with the registration of the business, but also with the purchase of the necessary equipment, as well as the rental of the premises. In accordance with the law, jewelry must be kept in a safe. That is why a pawn shop engaged in the purchase of gold must take care of the safety of property that customers trust it.
Profitability
How much can you earn on gold? This is perhaps the most pressing issue for those who are interested in generating income in this way. Do not expect to know the exact amount. Because many factors influence income:
- The amount of gold you own.
- A method of acquiring a precious metal.
- Period of ownership, etc.
Even the economic situation in the market affects the success of the transaction.
Suppose you buy gold at a price of 2123 rubles, and after a while you sell for 2223 rubles per gram. Accordingly, your profit is one hundred rubles for each gram sold. The more grams of gold you sell, the higher your bottom line.
You need to understand that profitability largely depends on the period of ownership. Do not try to sell the precious metal almost immediately after the acquisition and make an impressive profit. Experts say that you need to own an asset for at least four to five years. In this case, the transaction may be profitable for you.
It is important to understand that investing in gold is not a short-term profit, but a long-term investment. That is why, for short-term profit, a potential client is better to consider alternative ways of investing their own funds. However, if you just want to save the accumulated from inflation, buying gold may be the most suitable option for you. In addition, this method with an increase in the price of precious metals can bring additional profit. Agree, the above reasons are enough to understand the topic in more detail. Do not agree to the first offer when buying gold.