At Schlun & Elseven Rechtsanwälte, our lawyers advise and support our clients in purchasing and selling gold in Germany. Gold and other precious metals remain attractive investments for a growing number of investors. Buying gold is a solid investment that is comparatively straightforward to liquefy. Gold is a particularly valuable investment during a crisis as gold is much more likely to maintain its value than other, riskier investments.
Our international sales lawyers advise on all matters relating to gold trading in Germany. If you require expert legal assistance, please do not hesitate to contact our team directly.
Gold Trading in Germany: Legal Advice
Compared with other investments, gold is a durable investment whereby it maintains its value over time. Gold has been a valuable investment for thousands of years and has been shown to withstand global crises. As a finite product, gold tends to respond well in times of increased inflation and is more reliable than other forms of currency.
Another advantage of gold is that there is always a market for the product. As an investment option, it can be quickly sold or transferred at times when it is needed. The demand for gold comes from all over the world and with the proper assistance, finding a trustworthy and reliable buyer is possible. Our lawyers assist in such transfers.
Gold is best seen as a long-term investment and should be seen as a vital element of a diversified portfolio. Whereas currencies and other assets can be more volatile, gold tends to be a safer investment.
Identifying trustworthy partners is vital in the purchase of gold. For this reason, we advise you to approach agents who are members of the professional association of the German coin trade.
The importance of dealing with such professionals is that members of such a professional association guarantee the authenticity of the objects they sell. The likelihood of fraud is significantly reduced, and it is possible to identify the agents involved in a legal dispute.
Those within the association also take responsibility for demonstrating professional and commercial care in their dealings with precious metals. Gold can be purchased from other, less reputable sources where the usual legal requirements are not sought after, but this carries a much greater risk of potential fraud.
Whether the gold purchased is in gold bars or coins will depend on your situation and preference. Ask our investment experts for personalized advice regarding which form of gold to buy and how best it fits into your investment portfolio.
Purchasing gold, which has been supplied by known and respected manufacturers such as Britannia, Kangaroo, Krugerrand, Maple Leaf and Vienna Philharmonic, is essential for ensuring that it is of the required quality. Remember that impure gold is often not worth the investment.
Tax Matters and Gold Trading
In Germany, gold is seen as an investment and therefore is exempt from VAT (sales tax).
However, impure gold coins and other items can be subject to VAT, but these are usually not worth investing in or purchasing for this purpose. Other precious metals (such as silver) are not seen in the same way as gold; therefore, a tax rate of up to 19% can apply to these different metals. Furthermore, capital gains tax is also not applicable when purchasing gold.
However, as with most aspects of gold investment, the purchase of gold and its eventual sale should be seen as a long-term investment, as gold can be sold tax-free once the purchaser has held it for a period of twelve months. Selling the gold before the end of the twelve months will mean that income tax applies to it as a private sale transaction.
After purchasing gold, the next step is deciding how to store it. There are three primary means by which gold can be stored, namely: storing it at home, storing it with a bank, or keeping it with a third-party storage firm.
The first option – storing it at home – ensures that the gold is easy to locate and allows the holder to use it at short notice; however, it is the riskiest option, as should the gold be stolen, it is gone. Having the appropriate insurance cover for storing gold at home is strongly advisable.
Additional charges will apply when storing gold with banks or third-party storage firms. However, the added security is the benefit of such a decision, and a safe deposit box with a bank can start at under €100 a year. When it comes to third-party storage firms, examining the companies in question is beneficial when determining which is most suitable for your purposes. Our lawyers will work with you in making this decision.
Regarding the sale of the gold, our international sales lawyers will carry out the necessary due diligence to ensure that you receive the actual value applicable for the sale of your gold. Please, do not hesitate to contact us directly to start working with our team.
Practice Group: German and International Sales Law
German and International Sales Law
Contact our German Lawyers
Please use the contact form to contact our law firm regarding gold trading in Germany. After receiving your request, we will make a short preliminary assessment based on the information provided and give you a cost estimation.