The independent research agency MAGRAM Market Research, commissioned by the World Gold Council, conducted a study in which Russian experts estimated the optimal share of gold in the portfolio of the average Russian investor. In their opinion, it is 10-20%.
According to the World Gold Council, the hypothetical investor portfolio in Russia consists of the following assets: cash - 61%, real estate - 27% and securities - 9%. The share of gold in the portfolio at the level of 10% would significantly increase the profitability of the portfolio of the Russian investor - at least 7% over the past 20 years. In 2020, the demand of Russians for ingots and coins amounted to 5 tons. Last year, Russians bought 4 tons of physical gold.
Experts advise determining a sufficient amount of investment in precious metal, taking into account individual needs. It is recommended to increase investments in gold during times of economic instability and volatility in financial markets. The world is experiencing a crisis with energy prices. According to many experts, the global energy crisis will lead to energy collapse. Energy prices for the year increased by 29%. Russian investors should pay attention to this dynamics, since it will significantly affect the yellow metal exchange rate in the future.
However, some experts believe that gold, as an asset, should be a constant companion of the investor. Ray Dalio, founder of the investment company Bridgewater Associates (USA) and Sanford Mann, CEO of the investment company American Hartford Gold (USA), believe that even in "stable" times, at least 10% of the portfolio should be formed by gold and silver in order to diversify.
Benefits of investing in precious metal
The absence of counterparty risk, issuer risk and external risks related to international relations are the main positive aspects of gold purchase. The buyer of yellow metal can not worry about the safety of their assets, which guarantees a sense of confidence in the future and psychological comfort. Whatever happens in the stock and currency markets, precious metal can always be sold quickly at a good price.
Gold is a long-term asset with intrinsic value. In addition, buyers of yellow metal can expect to profit from the growth of its price in the long term. Dragmetall is not tied to the economy of any country, does not lose its physical qualities over the years and does not require special storage conditions. Gold can be stored at home or in a bank cell.
What is investment gold?
Investment quality gold is an item whose price is determined not by the form, but by the content of precious metal in it. Investment gold, unlike jewelry and art, is a precious metal of the highest standard: in ingots with a purity of at least 995 parts from 1000, in coins - at least 900 parts from 1000. In other words, investment gold refers to a high-purity physical precious metal.
How to competently invest in precious metals?
Investment in gold must be carefully planned. First of all, you need to choose an investment object. In the case of physical metal, it could be investment coins or bullion. The main barrier to investment in gold bars is VAT, which creates a wide gap between the price of purchase and sale. If the tax were abolished, then this would be a factor in the growth of purchases of gold bars.
Gold coins are a great solution for investing cash. When buying coins, you will not have to pay VAT. Coin prices are determined by gold quotes.
Coins can be collectible and investment. Collectible coins have not only investment value, but also numismatic, historical. The cost of such coins varies depending on the circulation, design of the coin, the presence of damage, year of issue, subject matter. Investment coins may not have any numismatic value. The price of such coins is as close as possible to the spot of gold. Investment coins can be commemorative, which are distinguished by higher quality minting. The circulation of such coins can be many times less than that of ordinary investment products.
When buying investment coins, be sure to indicate the name of the issuer, denomination and year of issue. Other data can be located on the coins, for example, a mass and a sample of metal. You should choose only trusted sellers of gold coins and carefully read all documents when making a purchase.
There are two strategies for investing in precious metals: long-term and short-term.
Raising prices in the precious metal market is a lengthy process. The investor does not profit from investments in precious metals immediately, but after a few years. Changes in yellow metal prices are influenced by global factors: political and military conflicts, increased investor income, changes in the exchange rate of world currencies, rising prices for the main groups of commodities, etc. Individual investors can buy investment coins at a bargain price, knowing about the long-term upward outlook. A favorable period for buying gold at a minimum price is the beginning of summer. There is an opportunity to sell it at the maximum price at the end of autumn.
The situation in the world is now turbulent, so there is a high probability of short-term profit when investing in precious metal. It is only necessary to respond in time to changes in the political and economic situation. These events can be monitored through international communication channels. With systematic analysis of information, you can timely record a favorable situation and respond instantly, resulting in significant profits. It is necessary to monitor the situation in industries that are the main consumers of precious metals, namely in the jewelry and energy industries, medicine, etc.