Successful people have kept part of their assets in physical gold throughout history and it has helped them through various economic crises and political expropriations. Gold is a stable and long term investment, mostly meant for the preservation of money. Tavex recommends acquiring investment gold in order to ensure that the money that you own today also has value when you need it as a pensioner. Gold also helps you to avoid the threat of political or economic turmoil.
Gold as pension fond?
Tavex recommends you to invest 10-30% of your assets in physical gold as an alternative or as a supplement to other pension fonds, and build yourself a so-called additional pension pillar.
Major differences between gold and other pension fonds:
- Money is kept in the possession of the person.
- Gold can be bought in small amounts every month for a conveniently available sum or in greater quantities once a year.
- As a pensioner, you can sell your gold in small quantities or leave it to your heirs.
- Should the economy go through a recession before you reach your pension age, it will not affect your assets held in gold.
Why is gold a good investment?
Should a larger catastrophe occur in the world, the security of electronic money and securities will be threatened and their circulation obstructed at once. Gold will always be within easy reach.
The value of gold cannot be decreased or nullified as a result of a political decision, which can affect the value of money or real estate. The value of gold cannot be decreased or nullified as a result of economic crises – bankruptcies, erroneous decisions, mismanagement, etc.
Gold is a feasible investment even for people who are not very experienced in the financial world, because they have no need to analyse the business news.
Gold is a stable and long-term investment that will not result in rapid profits, but has proven to be profitable and safe in the long term.
The price of gold is currently increasing and several analytics predict further rising. Different factors can influence the price also to move down from time to time. Nobody can give an absolute guarantee of rising rate. However, we can turn attention to factors which influence gold’s world market rate. In the end everyone must make their investment decisions themselves based on collected information. In real time, the prices can be monitored at www.kitco.com. Investment gold is free from value added tax in European Union.
What affects the price of gold? The price normally increases when there is instability in global economics or politics. The value of currency or securities can decrease due to political decisions or economic recessions. Prices increase when the state prints more banknotes – raw materials, such as oil and gold, increase the fastest in such occasions.
Why the price of gold dropped? In the middle of the 1990s several central banks decided to start selling their gold reserves. The market for gold is small compared to the market for money and it was filled in a short period of time by these large supplies of gold. The global gold market was not coordinated and a small panic occurred. On 11 September 2001, the purchase of gold was reactivated as insecurity increased.
The price of gold at Tavex
The price of gold is variable and dependant on the current global market price. The price of Tavex gold is based on the prices of large companies trading with European investment gold (for example Tax Free Gold), but Tavex keeps its prices at a more attractive level.
How gold is sold to Tavex
Money is given in exchange for gold at once if the gold is in an ideal shape and without any signs of forgery. In case forgery is suspected, money will not be paid immediately. The client is given an instrument of receipt and a copy is made of his or her identification document. The coin will go before an expert examination and the money is given to the client within 3 working days. Money is given only people who have been previously identified.
NOTE! The purchasing prices indicated in the price list are only valid for gold coins and bars produced by companies represented by Tavex, and if the coins or bars are in good shape. The value of the product will have decreased if it is made by another producer, is scratched, bent or if its vacuum package has been opened, which is why Tavex does not purchase them at the listed price. In such cases, the exact price of a particular gold coin or bar is determined by the cash flow manager at Tavex.
Which gold coins and bars to buy
It should be noted that the price of a gram of gold is lower in larger coins and bars. Coins of 1 ounce or more and bars of 10 grams or more are meant for investment. They are sold on the basis of the price of gold on the global market. In the case of smaller coins and bars, the price of a gram of gold already has a higher mark-up, as their production is technically more complicated and costly. Smaller coins and bars are mostly intended as souvenirs, presents and collectors' items.
In addition to price increases, one should consider that the numismatic value of some coins is likely to increase. One example of such coins is the Australian Lunar, which receives a new design every year (according to the Oriental calendar) and is produced in limited quantities.
For example, Australian Lunar Series 1 production has ended and these coins are available only on the secondary market. Some coins of the series (Dragon, Horse, Snake) have become so rare that they are sold dozens of percentages over the gold market rate.
All of the examples above apply to coins of 1 ounce. Of course, this income cannot be guaranteed, but as the quantities of Lunar coins are limited, it is certain that in the long run they can be sold at a higher price.
Gold is a stable and long term investment, but price increases have been known to be sudden from time to time. In case hyperinflation occurs, the price can increase even tens or a hundred fold.
Facts about investment gold:
- Free from value added tax
- Freely traded around the world
- Purity 999.9 (Except Eagle and Krugerrand 917.0)
- Gold is measured in troy ounces. 1 oz = 31.1034768 g
- Indestructible (does not burn, rot, rust etc.) – it cannot perish!