As a result of current geopolitical tensions, the price of the yellow metal is reaching record levels. Our advice for investing in the yellow metal with complete peace of mind.
Gold was one of the winners of this year 2023, establishing a historic peak level, beyond the symbolic threshold of 2050 dollars per ounce at the beginning of this month of December, driven in particular by geopolitical tensions in the Middle East. -East. Indeed, as Laurent Schwartz, president of the Comptoir National de l’Or, points out, the metal behaves as a safe haven par excellence in phases of severe geopolitical crises.
Beware of fees associated with physical gold purchases
However, despite the current enthusiasm of investors, we must keep in mind that this is an asset which brings nothing back to its owner. Care must therefore be taken to limit all costs associated with its detention as much as possible. Indeed, to buy physical gold (coins and ingots) from your bank or from a specialized reseller, you need to pay a commission, generally between 2% and 5% of the transaction amount, the purchase but also resale. Added to this are possible storage costs if you decide, for example, to rent a safe in your bank branch in order to avoid any risk of theft.
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Favor purchases of paper gold
To reduce the bill, Christopher Gannatti, head of research for WisdomTree Investments, recommends that investors turn to paper gold and in particular ETFs, these investment funds continuously listed on the stock exchange, like a share, which replicate almost identical to the evolution of the price of the yellow metal.
Easy to use and displaying annual management fees not exceeding 0.5% on average, these products offer the opportunity to invest at a lower cost in the yellow metal. However, to trade them, you must have a securities account allowing access to stock markets.
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Another solution is to invest in a Sicav or an equity mutual fund specializing in the theme of precious metals. Around ten funds implementing this type of investment strategy are currently available on the French market.
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The only drawback is that these funds are invested in gold companies listed on the stock exchange whose valuation obviously depends on the price of the yellow metal but also on other external factors, which can have an unfavorable impact on their share price, the image of the evolution their financial situation or the location of their mines in politically unstable countries.
Take taxation into account
In any case, for an ETF or a gold fund, it is the taxation of transferable securities which applies in the event of a profit. Net gains from disposal are thus subject to income tax at the flat rate of 12.80% or optionally at the progressive scale of income tax, to which are added social security contributions at the rate of 17.20%. .
Regarding physical gold, capital gains are taxed at 36.2%, social security contributions included, after a reduction of 5% per year from the third year of ownership. Clearly, twenty-two years of detention are necessary to benefit from total exemption from one’s profits.
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