Don’t buy physical Gold or Silver!

Don’t buy physical Gold or Silver!

The title says it all. Don’t buy physical Gold or Silver. Been there done that.

Not only you will pay high fees for purchase but you will also need to store them somewhere safe.

And if you want to sell them you will have to wait 2 weeks for the cash to arrive in your bank account.

For example. A 31,1g gold bar costs 1700€ to purchase. and if you want to sell it right away they will only give you 1594€. that’s a 106€ price difference. So by buying it you are already 106€ in -.

For silver its even worse because you have to pay 20% in taxes when you buy.

What I recommend instead you buy XAU(gold) or XAUG(silver) on the stock exchange.

Or invest in gold mining companies that pay a nice dividend.

You won’t get a ripoff price and also you can sell them anytime you want. And invest in stocks.

I have an account on CapTrader and I can buy gold and silver there and pay the minimum fee. It costs 2€ wether I buy 1000€ worth of gold or 10 000.

Also for stocks, the fee is the same. It doesn’t matter if I purchase 1 share or 1000 shares I always pay 2€ in fees.

A perfect example happened to me quite recently.
I bought silver at 14$ in march right after the corona crash. and sold it @28$. Now it has fallen below 23$ and i will slowly start buying it again. dollar cost average is the way to go. Will buy 50% now. and if it drops more I will buy more. I will explain in a later post how dollar cost average is the best way to invest and trade.
Also bought gold @1600$ and sold it @1900$.
Now if I would buy physical gold @1600 and sold it at 1900$ I would only make a profit of 100$. Because you pay a fee when you buy and when you sell. So you see the problem here.

The only time I recommend buying physical gold is when you expect a full-blown out War (China-USA atm.). Or a total collapse of the system. But then you will have much bigger things to worry about. That’s why I have only a fraction of my portfolio in physical gold. Around 5%.

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