Our Services in the Purchase of Gold and Other Precious Metals
Allow our team of investment lawyers to examine your portfolio and provide clear and straightforward advice as to the right investments for you – the investments we advise on are tailor-made to suit your demands. The benefits of gold are outlined below, but in particular gold is a stable investment that tends to hold its value during turbulent times.
Our lawyers will advise you on how to identify reputable buyers and how to avoid those who appear to be untrustworthy. Additionally, we guide you through what aspects you should be aware of when making the purchase. In particular, it is important to be aware of certain requirements that have been introduced to combat money laundering, namely IDs are required for the purchase of gold over the value of €2000. Allow our lawyers to also oversee the paperwork involved and all other aspects of the purchase of gold. Furthermore, we will support you in all issues relating to the storing and eventual sale of gold. We will advise you on the tax implications involved in such purchases and where best to store your investment.
When it comes to the sale of the gold, our lawyers will carry out the necessary due diligence needed to ensure that you receive the true value applicable for the sale of your gold. Contact us now to start working with our team today.
Why Should You Invest in Gold?
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 easily be sold or transferred in times when it is needed. The demand for gold comes from all over the world and, with the right assistance, finding a trustworthy and reliable buyer is possible. Our lawyers assist in such transfers.
Investing in 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 investments can be more volatile, gold tends to be a safer investment.
Advice on the Purchase of Gold
Identifying trustworthy partners is vital in the purchase of gold. For this reason, we advise that you should approach agents who are members of the professional association of the German coin trade. The importance of dealing with such professionals is that those who are members of such a professional association guarantee the authenticity of the objects they sell. The likelihood of fraud is greatly reduced and in the event of a legal dispute it is possible to identify the agents involved. Those within the association also take the required responsibility when it comes to 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 the form of gold bars or gold coin will depend on your situation and preference. Ask our investment experts for personalized advice as regards to which form of gold to purchase 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 important for ensuring that it is of the required quality. Remember that impure gold is often not worth the investment.
Tax Matters and Purchasing Gold
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 not worth investing in. 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 on 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.
Storing Gold – the Options Available
After the purchase of gold, the next step is deciding on 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 – of 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. It is strongly advisable to have the appropriate insurance cover for storing gold at home.
When storing gold with banks or with third-party storage firms additional charges will apply. 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, it is beneficial to examine the companies in question when determining which one is most suitable for your purposes. Our lawyers will work with you in the making of this decision.