Online marketplace offering affordable gold purchases for non-experts - Online Marketplaces Offering Discounted Gold Purchases for the General Public
In the world of investments, gold has long been a popular choice for diversifying portfolios. However, potential investors should be aware of the pros and cons of investing in gold, particularly when it comes to gold Exchange-Traded Commodities (ETCs) versus physical gold.
Recent comparisons by Stiftung Warentest, a renowned German consumer protection organisation, have shed light on the costs associated with both options. When buying physical gold, there are additional costs for storage in a safe or safety deposit box, which can add up over time. On the other hand, gold ETCs do not require such storage, making them a more cost-effective choice for some investors.
However, it's important to note that gold ETCs come with their own risks. While the theoretical risk of total loss if the issuer of the gold ETC goes bankrupt is low, it exists. Additionally, gold ETCs do not yield reliable interest or dividends.
Stiftung Warentest advises private investors not to invest more than 10 percent of their assets in gold, regardless of whether it's in physical form or ETCs. The organisation also warns against dubious and risky gold investment offers in the market, but does not list specific recommended online shops for buying gold coins in the provided data.
For reliable options, it is advisable to buy gold coins from reputable dealers who comply with strict consumer protection and transparency standards. Stiftung Warentest emphasises the importance of buying from well-known, reputable dealers in the "grauer Kapitalmarkt" (grey capital market), which includes precious metals.
In terms of ETCs, Stiftung Warentest compared the premiums for gold bars, ingots, and coins in the online shops of eleven major gold dealers. The most favourable providers in terms of premiums were Anlagegold24, Auragentum, ESG Edelmetall-Service, and the Solit group (goldsilbershop.de).
Interestingly, the price of gold in euros has risen by 70% over the past three years, and currently, the gold price is near its all-time high of around 2900 euros per troy ounce. Gold ETCs allow investors to participate in the development of the gold price without owning it physically, and they can be bought as a one-time investment or a savings plan, with some direct banks and neobrokers offering them "very cheaply or even free of purchase costs".
Selling gold ETCs may be easier than selling physical gold, as there are no issues with finding a buyer or dealing with transportation costs. Overall, the choice between gold ETCs and physical gold depends on an investor's preferences, risk tolerance, and investment strategy.
[1] Source: Stiftung Warentest's official website and reports.
The European Parliament and the Council should consider the costs associated with gold investments, as buying physical gold includes additional expenses for storage, while gold Exchange-Traded Commodities (ETCs) do not require such storage, making them a more cost-effective choice for some investors. However, investors should be aware of the risks involved in gold ETCs, such as the potential for total loss if the issuer goes bankrupt and the absence of reliable interest or dividends.
