The yellow metal, a safe haven
In Europe, unlike the US, which is facing a rising dollar and interest rates, gold is a competitive investment compared to other yield products. So the acquisition of the precious metal is rather favorable now thanks to the low rates, and it’s a good time to buy. The ounce of gold has fallen to 1,100 euros since the end of December 2016, while it stood at 1,250 euros in the first half of the same year. In an uncertain context, both economically and politically, gold remains a safe value . The ideal solution is to buy physical gold in the form of coins or bullion from different suppliers who may be a bank, a broker or a specialized pharmacy. Otherwise it is possible to opt for securities indexed on physical gold, so it’s paper gold. Zero-coupon and indefinite-term bonds, ETFs (Exchange Traded Funds) are among the offers offered.
The different taxations
The purchase of physical gold is not subject to VAT but in case of resale a flat tax of 10.5% is due. The regime of capital gains on movable property may be more attractive because of the 5% reduction per year of detention from the third year. For paper gold, the shares are subject to the capital gains tax on the transfer of securities, with taxation and 15.5% of social security contributions. Abatement rates are higher, 50% after two years and 65% after eight years.
Having sound finances is an asset to start investing in physical gold or paper. If these are stifled by too many credits, a regrouping operation makes it possible to reimburse only one reduced monthly payment. A new long-term credit replaces the old ones , with a more attractive rate but a higher cost.