You want to make a profitable investment? Wondering in which product or sector to invest in? Gold can indeed be a good idea. As long as you are familiar with the conditions of purchase and sale and understand the rules governing this coveted field.
Gold: Where to buy and sell?
Even if you don’t know much about gold, you’ve probably heard about its ever-increasing value. While many sectors have experienced ups and downs, the price of gold is still in a privileged position, as it is one of the most valued and profitable products on the market. In 2012, studies have shown that the French have invested up to €1.1 billion in gold. With such attractive figures, taking an interest in this area is not such a bad idea. But where to start? Novices will go straight to the banks. This may seem like the safest of all approaches, but it quickly comes up against its limits, namely the fees in the event of a sale, which can be as high as 3%. There is another alternative: The Internet. Several sites offer to carry out transactions that ensure you receive the quantity purchased by means of an envelope. In the majority of cases, the delivery is done within a week. Even if this process can put off more than one person, the procedure remains common as for all products, even of higher value, bought and sold on the web. But it is clear that you have also seen a shop that specializes in gold transactions. These shops are flourishing on every street corner, ensuring that you will find a professional. You can thus benefit from reliable expertise on the spot and go straight home, in the case of a sale, with your money.
Quality or quantity: what makes the price vary?
As a general rule, the purchase of gold, like the sale, depends on the quantity. Without wanting to fall into banalities, the more you have, the more you will receive. But another parameter also comes into consideration: the quality of the piece. The rarity of a stone makes it more expensive when buying back gold. Even if the coins are recovered by casting, they must be estimated according to their value. A “touchstone” test is not enough to determine the price. It should then be understood that gold coins differ in their possible rarity even if they show the same figure on the scale. Coins of the Louis 18 or Louis-Philippe type have a value up to 5 times that of a classic Napoleon. However, if you have them appraised in a resale shop, you will get a much lower price on the pretext that they contain less gold. Solution: If you hesitate about the value of a piece, nothing prevents you from asking a collector’s opinion. He will have the eye and the know-how to determine its origins and what it is really worth.
Buying and selling gold: taxation
Since 2004, we can’t really talk about prices in France for gold. As surprising as it may be, it is CP Or, the largest French wholesaler, which applies and generalises the tariffs in force. Since the advent of Internet sites specialising in these transactions, the prices can be as much as double for no apparent reason other than that of a poorly regulated price system. What about taxation? Surprising, isn’t it? Gold and taxation are two inseparable sectors, even though many dealers have no idea about this. For example, did you know that the Krugerrand is an 8% tax-exempt coin. And with good reason: this coin, which weighs one ounce, or 28.35 grams, is legal tender in South Africa. You should also know that there is a 34.5% capital gains tax. But you have to present your gold purchase invoice to benefit from it. This should not be overlooked, as this alternative gives you the opportunity to earn more, compared to the so-called flat-rate tax estimated at 8%. You are probably asking why the counters do not systematically apply this exemption system. The reason, far from being a concern for dishonesty, is a desire to simplify the calculation or simple ignorance.
How to choose your gold buying and selling counter?
To make your choice, you must check the reliability of the establishment in question, whether it is a physical shop or a website. Then start by making sure that the gold price and the price per gram per carat are displayed. Since the decree of 18 August 2015, this display is mandatory. If the professional derogates from this rule, you must ask yourself questions about its reliability. An establishment that deserves your trust must also use an approved scale. It is important to remember that this is normally reviewed by a certified organization that offers what is called a “green sticker”, which is considered a guarantee of certification. Although the law does not require the buyer to weigh the parts in front of the seller, it assumes that this step is unavoidable. The sale must also be registered. To do this, assuming you are the seller, you must provide identification. Otherwise, the sale will be outside the legal framework. In addition, a person under the age of 18 is not allowed to make this type of transaction. Please note: The above mentioned conditions are not the only ones. You should therefore find out enough about the reliability criteria of a gold bullion dealer before you start.