HOW TO INVEST IN GOLD MINING
Get information on how to invest in gold mining, purchase gold mining shares, you can invest in the stocks of gold mining companies, or the royalties, as well as gold mining exchange traded funds (ETFs) and mutual funds in Africa. As with any investment, carefully evaluate the instrument, such as the financials of a gold mining company and the prospectus and fees of a fund.
Learn how to invest in gold mining, in general, investors looking to invest in gold directly have three choices: they can purchase the physical asset, they can purchase shares of a mutual or exchange-traded fund (ETF) that replicates the price of gold, or they can trade futures and options in the commodities market. Average investors, for example, might buy gold coins, while sophisticated investors implement strategies using options on gold futures.
With increasing financial uncertainty, people are jumping into gold. And gold is responding with recent all-time highs. However, if you’ve started tracking the price of gold, you’ll see it drop just as fast as it spins up.
Gold prices are notoriously volatile. If you want to invest in gold, you need to get comfortable with it. Gold does not behave like cash, stocks, or bonds — and that is exactly what you’re looking for in an alternative asset.
Some ways to invest in gold mining:
Buying the metal itself, buying gold funds, or buying gold options.
Investing in gold bullion for individuals takes the form of gold bars or coins.
Mutual funds and exchange-traded funds that invest in the precious metal or shares of mining companies offer a more liquid and low-cost way to invest.
More sophisticated investors might trade gold futures or futures options.
Buying Gold Mining Stocks | Invest in Gold Mining
In case you cannot get your hands directly on any gold, you can always look to gold mining stocks like what we offer at bunia precious metals.
Keep in mind however, that gold stocks do not necessarily move in concert with bullion prices, you must contact us for further information so that we can discuss the details with you.
Buying Gold Bullion (Gold Nuggets/ Gold Bars) | Invest in Gold Mining
Compared to other commodities, gold is more accessible to the average investor, because an individual can easily purchase gold bullion (the actual yellow metal, in coin or bar form), from bunia precious metals dealers.
Bullion bars are available in sizes ranging from a quarter-ounce wafer to a 400-ounce brick, but coins are typically the choice for new investors. Learn how to invest in gold today. Buy gold bars in Al Utouriya from Africa today.
Not to be confused with vintage numismatic coins, these are new issues priced on their gold content, plus a 1% to 5% premium. Whatever you prefer, be sure you are buying from a reputable dealer like us at bunia precious metals, either in person or through the internet, but at bunia precious metals we always prefer you to come in person.
Invest in gold mining, gold coins obviously require safekeeping either a home safe or a bank safe deposit box. Be sure to insure them, too.
Gold jewellery also allows the investor in gold to also experience the enjoyment of wearing it. Gold is often combined with other precious gems and metals to enhance the overall value and appearance of the jewellery.
Frequently asked questions about buying gold bars in Europe
What are gold bars in Europe?
Gold bar is another word for gold stick. It is an often rectangular-shaped block of pure gold. A gold bar is produced by a smelter and gold bars in Europe always contain pure gold, at least 99.5% as gold content.
Gold bars in Europe from recognized producers always show the weight and content.
What are the cheapest gold bars in Europe?
The gold bar in Europe with the lowest price is the 1 gram gold bar. An important note here is that production costs are often very low with such small gold bars in Europe, so it is generally wiser to invest in gold mining or buy a gold bar in a higher weight.
The cheapest gold bar in relation to the gold price is the 1 kilogram gold bar. This is a gold bar that can be bought at a premium of typically only 1% above the gold price. This makes it the gold bar with the lowest price per gram.
However, the size of 1 kilogram is such that the 1-kilogram gold bar in Europe is a very expensive product and represents a market value of currently around €69,000.
What are important considerations when buying gold bars in Europe?
Always read up carefully first when you want to buy gold bars in Europe. After all, invest in gold mining, buying gold is not an everyday occurrence for everyone and involves high purchase amounts. Would you rather buy gold bars or gold coins?
Gold bars in Europe are cheaper compared to gold coins. This has to do with production costs. The larger the gold bar, the lower the premium.
To best help you with your gold purchase, we have a guide to help you determine the best choice based on your purchase amount.
Buying gold is usually done for the long term, i.e. for an investment horizon of at least 5 to 10 years.
Which gold weight should you opt for?
The weight of the gold bar that best suits your needs depends on your own preference. Gold bars can be bought from 1 gram up to 1 kilogram.
If you want more flexibility, then perhaps the gold combibars could be a good option for you. This gold bar is produced just like a chocolate bar and breaks down into small gold bars of 1 gram. Gold combibars are available from 10 x 1 gram up to 100 x 1 gram.
Are gold bars in Europe subject to VAT – Invest in gold mining?
VAT is not paid on investment gold, provided it was minted after 1800, is at least 90% pure gold and – in the case of coins – it is or has been legal tender in the country of origin. Gold coins and gold bars in Europe are VAT-free. However, investment gold is part of your assets and you should declare the ownership of gold in Box 3.
Will I receive a certificate of authenticity with my gold bars in Europe?
Most newly casted gold bars in Europe come with a certificate of authenticity. Depending on the producer, this may look different. Gold bars sourced from local miners come in a blister pack that serves as a certificate.
You can filter our range of gold bars by new gold bars with a certificate of authenticity, and the specifications on the product page also indicate for each gold bar whether it comes with a certificate of authenticity.
How is the gold delivered in Europe?
There are various options for shipping your gold. With our personal delivery service, your gold is insured and discreetly handed over to you, but you can also choose to collect the gold yourself in Congo or by appointment.
Do I choose gold coins or gold bars?
During consultations, we are often asked whether you would be better off Gold bars or Gold Coins can buy. It doesn’t really matter much, since gold is just gold at the end of the day. Investment gold is exempt from VAT and, unlike silver, you won’t be able to make any mistakes with this.
When purchasing your precious metal, invest in gold mining, it is important that you take into account the production costs and other premiums that are passed on in the price.
For gold, the greater the gold weight, the more advantageous the premium. Large bars are cheaper per gram than smaller bars. This also applies to the well-known gold investment coins.
Do I pay VAT on precious metals? Do I pay VAT on gold?
Within the eurozone, gold is exempt from VAT, as long as it is Gold bars with a purity of 24 carats and Gold Coins with a purity of at least 90%. The reason for this is that the European countries and the ECB classify gold as a form of financial wealth that must be freely tradable, similar to stocks and bonds.
Do gold bars in Europe have a certificate?
Invest in gold mining with the Local Gold Miners Corporation sells only Gold bars in Europe which are produced by respected refineries. A quality mark that sets strict requirements for the production, weights and purity of gold bars, which ensures that the gold bars can be traded worldwide without further analysis.
Invest in gold mining, all gold bars come with a certificate of authenticity. Please note that this is not a separate document but a part of the packaging.
Why should I buy gold in Europe?
Gold in Europe offers protection in times of inflation and is therefore a pillar in every investment portfolio. In the long term, gold retains its value, while currencies lose a lot of purchasing power.
Invest in gold mining, An example of the value retention of gold is that 2,000 years ago you could buy a tailor-made suit for one Gold coin. And that is still the case today. In addition, gold is an insurance against a systemic risk: if the entire financial system collapses, so buy gold bars in Europe, the gold supply provides collateral to start over.