Gold Bullion: Everything You Need to Know to Invest

Key Points

• The stability and global liquidity of gold bullion make it an attractive investment.
• Bullion is more efficient than coins for long-term investment, although both have their place.
• The value of gold depends on the international price, its purity, and the weight of the bullion.
• Buying gold bullion in Spain is practical and tax-advantageous thanks to VAT exemption.
• It is crucial to ensure secure storage and verify the authenticity of the bullion.

Introduction

Gold bullion represents a solid and secure investment option, providing a safe haven against financial volatility and a means to preserve wealth. Its popularity as a strategic tool is growing both in Spain and globally (Source: DracmaMetales). But how and where can you invest in gold bullion safely? How can you assess its current value and what are the key considerations? These are some of the topics we will explore in this guide.

Why Invest in Gold Bullion?

There are several reasons why gold bullion is an attractive investment:

• Stability: Gold bullion is renowned for maintaining its purchasing power over the long term, surviving financial and inflationary crises (Source: DracmaMetales).
• Global Liquidity: Bullion can be sold in virtually any country and market (Source: DracmaMetales).
• Diversification: Experts suggest that gold bullion could be part of a balanced investment portfolio, reducing overall risk and enhancing security (Source: DailyForex).

In contrast to digital or financial investments, physical gold bullion does not depend on banking or computerized systems, eliminating certain systemic risks. As for the today's gold bullion price, its value is determined by macroeconomic factors and can be checked on international markets and specialized platforms (Source: DracmaMetales).

Bullion or Gold Coin? Key Differences

Both gold bullion and gold coins possess intrinsic value, but there are key differences to consider:

• Bullion generally has a lower premium over the spot price due to simpler manufacturing processes (Source: YouTube).
• Coins, although they may be more expensive, might be preferable if you anticipate needing to use gold as a form of exchange, as they are more recognizable and easier to subdivide (Source: YouTube).
• For long-term investment purposes, bullion offers a more cost-efficient option (Source: YouTube).
• Both can have a place in your investment portfolio, depending on your specific liquidity and diversification goals.

How the Value of Gold Bullion is Determined

The gold value per gram depends on several factors:

• The international quotation of gold fluctuates based on supply, demand, and macroeconomic factors (Source: DailyForex).
• The purity of the bullion, which is normally 99.99% for investment purposes (Source: DracmaMetales).
• The weight of the bullion; larger bullions tend to have a lower premium per gram than smaller ones (Source: YouTube).

The today's gold bullion price can be determined by checking international market websites, brokers, and specialized stores (Source: DailyForex).

How and Where to Buy Gold Bullion in Spain

There are several secure options for buying gold bullion in Spain:

• Authorized banks and specialized precious metal stores (Source: DracmaMetales).
• Trusted online platforms that offer bullions certified by the LBMA (Source: DracmaMetales).
• It is essential to verify the authenticity of the gold bullion; therefore, you should always request authenticity certificates and check the seller's reputation.

Furthermore, investment bullions should be marked with their weight, purity, serial number, and the manufacturer's mark (Source: DracmaMetales).

Regarding regulations, purchasing physical gold in Spain does not require complex procedures; however, it is advisable to keep the purchase invoice for future sales and tax purposes. It is important to note that in the European Union, gold bullions are exempt from VAT, which makes them more attractive from a tax perspective (Source: DracmaMetales).

Storage and Custody: How to Safely Store Gold

Once you have acquired the bullion, ensuring its secure storage is essential. Options include bank safety deposit boxes, private companies specializing in gold custody, and storing it yourself in secure locations (Source: DracmaMetales). Each option has its advantages and disadvantages, and the costs may vary depending on the value stored and the chosen provider.

What to Consider Before Investing in Gold Bullion

Despite its advantages, there are several factors to consider before investing in gold bullion:

• Risks: There is a risk of theft or loss, and moreover, bullion does not generate returns through dividends or interest (Source: DailyForex).
• Diversification: Never put all your eggs in one basket. Diversifying your investment portfolio is a basic and healthy principle in the world of investing (Source: DailyForex).
• Liquidity: Although gold bullion is highly liquid, there may be significant differences between the buying and selling prices (Source: YouTube).
• Tax Considerations: In Spain, the sale of gold is taxed as a capital gain, so it is important to consider the corresponding tax implications.

How to Invest in Precious Metals Beyond Bullion

In addition to bullion, there are other ways to invest in gold that can also be profitable:

• Gold ETFs: Exchange-Traded Funds allow you to invest in gold shares without the need to physically store bullion, making liquidity easier and reducing custody costs (Source: DailyForex).
• Gold Certificates: These certificates represent ownership of a specific amount of gold. They are more convenient since they do not require physical storage, although the security of the physical asset is not present (Source: DailyForex).
• Gold Mining Stocks: By investing in these companies, you are indirectly investing in gold. However, the performance of the investment will also depend on how the mining company is managed.

Conclusion and Final Recommendations

Investing in gold bullion is an excellent way to safeguard your wealth and diversify your investment portfolio. However, it is essential to ensure secure purchasing, verify authenticity, store it properly, and stay updated on market values. We recommend checking the latest prices and seeking professional advice before making your investment. (Source: DailyForex, Source: DracmaMetales)

FAQ

When is the Best Time to Buy Gold Bullion?

There is no "perfect" time to invest in gold. However, many investors choose to buy gold during periods of economic uncertainty as a way to preserve their wealth.

Is it Safe to Buy Gold Bullion Online?

Yes, provided you purchase from recognized and trustworthy sellers who offer bullions certified by the LBMA. Always ask for a certificate of authenticity.

How Should a Gold Bullion be Stored?

You can store your gold bullion in a secure location such as a bank safety deposit box, a private custody company, or even in a secure place at your home.

How Can I Tell if a Gold Bullion is Authentic?

Authentic gold bullion should be marked with its weight, its purity percentage, a serial number, and the manufacturer's name. If you buy from a reputable seller, they will always provide you with a certificate of authenticity.

Do Gold Bullions Pay Taxes in Spain?

No, in the European Union, gold bullions are exempt from VAT. However, the sale of gold is taxed as a capital gain, which must be declared at the time of sale.

Which is Better, Buying Coins or Gold Bullion?

It depends on your investment goals and plans. If you intend to use gold as a medium of exchange, coins are more recognizable and easier to subdivide. For long-term investing, bullion is more cost-efficient.