Today, the German magazine Focus published an article about precious metals. It can be found here (in German).
We’ll analyze the article here and check how its topics match our previous recommendations and the offer of our partner.
Topic 1: How big should the portion of precious metals be in the total asset portfolio?
We should not forget that one of the main goals of purchasing precious metals is the protection of your assets from inflation. The more you see the risk that fiat money will be devalued, stocks might face bearish market pressures, the more you should shift towards precious metals.
Whether the portion of precious metals in your assets would be 1%, 10% or 40% – it’s up to you. Bank of America and JP Morgan recommend holding around 20% of your assets in gold and it certainly has its reasons.
Topic 2: Physical gold is your insurance against financial crisis.
Surely, you can also invest your money into certificates, fonds or any other papers linked to precious metals. However, you are at the mercy of the emitter of those papers. If you want to securely protect yourself against devaluation, physical metals are a must.
The bigger the bar, the smaller the handling fee. But not everybody has enough pocket money to purchase directly a bar of 1kg of gold. And here the offer of our partner comes in handy: our partner purchases bars of 1 kg (if talking about gold). But you can purchase just a fraction of 1 kg (starting with 1 EUR/ USD/ GBP/ CHF) at the same price per kg. You then become a co-owner of the bar with documented ownership.
If you wish to get your metal sent to your home and your owned metal is a fraction of a bar, additional stamping costs will be charged on top.
Topic 3: Owning metals and storing them
The purchase is one topic. If you purchase gold and let it deliver to you, the delivery can easily take few weeks. During this time, you do not hold your metal and cannot dispose of it.
Once your metal arrives, another topic arises: how to store it? At home, your standard household insurance might not be sufficient.
You surely can deposit it in one of the safe deposit boxes in a bank. In this case as well you might need additional insurance as your whole metal value (depending on how high it is) would not be automatically ensured by the bank itself. And the fact that bank safe deposit boxes are not always very secure was demonstrated recently with few German banks.
Topic 4: Storing abroad and securing it from access by state authorities
A better alternative is storing your metals in a highly secured customs-free storage, for example in Switzerland. You pay your storage fees, but your metals are completely insured without limits as well.
Other benefits of this solution:
- metals are outside of your own country. No access to money-hungry governments or in case of any law changes in your country
- no impact if personal possession of gold would be prohibited (which happened multiple times in the past in many countries in Europe and Americas)
- No VAT charged when purchasing white metals, like silver, platin or palladium (if you let deliver them at your home, the local VAT will be charged)
- You can purchase and sell any fraction of your metals targeting certain weight or certain monetary value at the best spot prices. The metals become available to you in the app within minutes
- Purchasing and selling is possible in four main currencies: USD, EUR, GBP and CHF.
- Using our swap strategy you can further increase the quantity of your metals without even investing more from your cash
All the benefits of our partner offer can be found in our blog articles:
You can also compare the offer of our partner with potential competitors reading the following article:
And if you wish to have more insights or need a consultation before registering to our partner offer, feel free to contact us. A representative of Singabiz or our partner will be glad to assist you further.
