Throughout history, gold has remained the ultimate store of value precisely because it maintains or increases in value during periods of economic uncertainty. That is why buying physical gold is an excellent investment option that is usually safe and profitable. However, it can also carry risks if some basic precautions are not taken into account.

Its long-term profitability, the possibility of diversifying and reducing the risk of our investment portfolios and its great liquidity that allows us to quickly recover the money invested in case of need, make gold a very attractive asset for any investor or person who wants to protect their savings in an inflationary period or in times of economic crisis.

In the last five years, it has experienced a spectacular increase in value, doubling in price and reasserting itself as the most valuable asset on the market. However, it is advisable to take certain precautions and avoid making certain mistakes when acquiring this golden metal, which we detail below:

Ignoring the purity of gold

Gold bullion must be at least 99.5% pure, although 99.99% pure gold bullion is common, while coins must be at least 80% pure. Bullion and coins that do not meet these purity standards will be subject to the standard VAT rate of 21%, which applies to the purchase of other precious metals. Preciosos 11Onze gold guarantees the highest purity (999.99 out of 1,000).

Confusing physical gold with digital gold

It is essential to be very clear that physical gold is a raw material that, once acquired, automatically becomes the property of the customer. On the other hand, digital gold, usually in the form of ETFs, are exchange-traded funds run by a fund manager, which operate on a system of leverage, so that not all the gold that is represented in the ETF’s holdings have physical gold behind them to support them.

Disregarding buy-backs

One of the first questions to ask the trader or platform that has sold us the gold is whether, if we want to sell it, he offers a buy-back service. If not, we must be suspicious of the selling price and the reliability of the trader. At 11Onze we make it easy for our customers who store their gold at home to find a buyer at the best possible price for the customer, or we sell it on their behalf if they have contracted a custody service with us.

Not planning for storage

Physical gold needs secure storage such as safes or professional storage services. Not having a safe place can expose your investment to theft. By contracting a safekeeping service, you ensure that your gold is protected and insured by a professional storage company specialised in precious metals.

If you want to discover the best option to protect your savings, go to Preciosos 11Onze. We will help you buy at the best price the ultimate safe-haven asset: physical gold.