Investment Gold

What is investment gold?

Many still think that gold is the “money of the past” but investment gold today has exactly the same role as it did centuries ago – modern gold coins are still recognized as legal tender in the countries where they are minted. However, not every gold coin is investment gold.

In order for a product to receive the status of investment gold it must meet precisely defined criteria, prescribed both in Serbia and in the European Union.

Criteria for Gold Coins

A gold coin is considered investment gold if:

• has a clarity of at least 21.6 carats (.900 fineness)
• was minted after 1800
• has served or continues to serve as legal tender in the country of origin
• its price does not exceed the spot price of the contained gold by more than 80%

Criteria for Gold Bars

In the case of gold bars and bars, the criteria are simpler – it is enough that they have a purity of at least 23.88 carats (.995). Serious manufacturers also print the serial number and name of the refinery on the bars and plates, which is an additional guarantee of authenticity.

Why invest in investment gold?

Physical investment gold is still the most popular way of saving in gold today – it is bought and sold all over the world, which makes it an extremely liquid investment.

In Europe, including Serbia, investment gold is exempt from VAT by law, so the price of gold bars and coins remains as close as possible to the world spot price of gold. When importing from outside the European Union, Great Britain or Turkey, excise duty is paid. As a reputable dealer, we regularly publish and update the prices at which we buy and sell gold, so that every transaction is completely transparent.

Throughout history, investment gold has proven to be one of the safest assets in times of crisis – it successfully preserves the value of money and human labor during inflation. To illustrate: in the last seven years, the Serbian dinar has lost over 70% of its purchasing power, while the price of gold in euros has increased by 253% in the same period. That is why the interest in buying gold bars and coins in Serbia is continuously growing.

Among the most popular gold coins in Serbia are the Vienna Philharmonic, Austrian Franz Joseph ducats and French francs.

There is also strong interest in the 1 gram Tavex gold bar, as well as the larger bars of 10, 20, 50 and 100 grams produced by Swiss refiners Valcambi, Argor Heraeus and PAMP. Regardless of the current market price of gold, even lighter weight bars store significant value in a physically compact form, making them a practical choice for both smaller and larger investors.

The most popular gold coins and gold bars for investing in Serbia

As an official partner of the world’s most famous refineries and foundries, we offer extremely liquid products, the prices of which we form to be as close as possible to the current market price of gold.

Gold bars most often chosen by investors are Valcambi bars of 50 and 100 grams, as well as Argor-Heraeus gold bars of 100 grams and PAMP Fortuna of 50 and 100 grams. These bars stand out as an excellent investment because they are sold on the market for only about 5% above the price of the gold they contain.

Gold coins that dominate demand in Serbia:

• Franz Joseph (Small ducat) – they have been minted for almost a thousand years and the Münze Österreich still issues them today as a symbol of financial stability
• Vienna Philharmonic – the first gold coin was minted in 1989, and today it is one of the most recognizable gold coins in the world (it is also produced in silver and platinum)

What should you know about saving in investment gold?

Investors associate physical gold with low risk and view it as protection against currency devaluation due to inflation. The price of gold often moves independently or oppositely to other investment instruments, which is why investors use it for portfolio diversification – the same reason that large institutions and central banks buy gold.

The benefits of saving in investment gold are not just VAT exemption. It is also about:

• long-term security
• portfolio diversification
• protection against inflation
• historically proven value in periods of geopolitical and financial uncertainty

Thanks to the wide variety of weights, owners of gold bars and coins have significant financial flexibility – in case of an urgent need for a smaller amount of money, they can sell a product of lower weight, instead of liquidating the entire investment. This should definitely be taken into account when planning a portfolio in investment gold.

Since the gold market gathers a huge number of participants, the price usually does not change suddenly, which is why this precious metal is not ideal for short-term speculation. Also, it is important to keep in mind that physical gold does not bring passive income (interest or dividend) – its value is solely in the preservation of capital. Investment gold is a long-term investment, so it is recommended that you own it for at least 3 to 5 years before selling.

Storage and protection of physical investment gold

Proper storage directly affects the value of investment gold:

• Do not remove the products from the factory (blister) packaging – with bars, the packaging also serves as a quality certificate, and by removing it, the price of the product decreases
• Modern gold coins should avoid any kind of damage
• Historical coins should be protected from punctures, scratches, dents and edge wear – although, given that they were once in circulation as a means of payment, they are not expected to look “like new”