As 2021 progresses, economic growth and a solid recovery are expected globally after a 2020 in which everything fell apart due to the great health crisis. It is time for investors to start considering which are the best assets to invest in considering the current panorama goldco review, and gold is one of those that always receives special attention because it is considered a good safe haven asset. Is it worth buying gold in 2021? Experts point to the importance of always having investment gold as part of the portfolio in order to protect against inflation, among other things.
Here’s a look at the top reasons that make buying physical gold a great investment idea for this year.
Gold as a store of value
Regardless of the economic impact that may take place this year, buying physical gold can be a good option for a number of reasons. One of the most important to keep in mind is that the precious metal acts as a long-term store of value.
We are facing a reality in which fewer and fewer people use cash in their daily lives, especially young women. It is a trend that has occurred for some years, which has not stopped growing, and which increased significantly in 2020 as a result of the coronavirus pandemic. There are even countries that hardly use cash payments anymore. Buying a gold bar or an investment coin offers the security of having something physical and palpable with a value that is maintained over time and that does not depend on the fluctuations of the policies of central banks or governments.
Investing in gold to hedge against inflation
Another attraction of gold is that it serves as a hedge against inflation. The fear that investors have of an upcoming rise in inflation due to the measures that governments and central banks are taking, has caused the demand for physical gold to grow. What they seek with this is to protect their purchasing power.
Gold has always been an excellent inflation hedging tool. In fact, the asset stands out for maintaining its value over time against the constant degradation of currencies, which causes its price to increase. In this way, central banks cannot degrade the purchasing power of gold by printing larger amounts of coins, and the gold metal does not pose a risk of default.
The special taxation of physical gold
The taxes that the investor must pay to the State is a compelling reason when deciding on one asset or another. One of the advantages of physical gold, whether in the form of bullion or coins, is that it has a special taxation in the European Union, in which investors are exempted from paying VAT with the acquisition of pieces of 2 or more grams. What does this imply? That all the money that is invested translates into gold.
If we talk about personal income tax, the sale of gold is taxed by the difference that exists between the purchase price and the sale price, as an increase or decrease in equity in the savings base. On the other hand, if the investor is a resident of a community in which it is necessary to make a declaration of patrimony, the gold is declared in the same way as the rest of the assets and investments.
Immediate liquidity
Finally, we cannot forget the ability of gold to generate immediate liquidity anywhere in the world.
Gold has been the universal currency par excellence for thousands of years. Nowadays, it is very easy to convert it into cash or currency in all countries, even the most remote ones.