Which gold investment should it be?
Those who rely on high security should round off their portfolio with gold . Martin Spieler explains the different investment options.
Martin player
Stable in value despite exchange rate fluctuations: Because gold offers a hedge against inflation.
Photo: Getty Images
I would like to invest part of my savings in gold. What do you have to pay attention to in general? What are the different types of gold investments? Which investment product do you recommend if you want to invest in gold as easily, safely and sustainably as possible? Reader’s question from SA
When investing in gold you must be aware of that gold does not generate any return. Gold is a good hedge for really bad times, but has the disadvantage that it neither earns interest nor pays a dividend. You also have to expect strong price fluctuations with gold. This is despite the fact that gold is considered a safe investment.
I therefore recommend a gold investment only if you have a long investment horizon and do not need the invested capital for a long time. Investors hope that gold will provide protection against a sharp rise in inflation. However, despite growing inflation fears, gold prices have not really risen lately. The stronger dollar was partly responsible for this. Gold is mostly traded in dollars. A strong dollar often leads to a lower gold price and a weak dollar tends to increase gold prices. But this is not always the case.
Rising interest rates are also bad for the gold price. Because if investors can generate interest income again with very safe bonds, for example, they are less likely to switch to gold. With interest rates of zero percent, it doesn’t matter that gold doesn’t yield any interest. If, however, the interest rates of very safe bonds are in positive territory, they will compete with gold. Since interest rates are rising in the US, this has a negative effect on the gold price.
You can also invest in precious metal funds or in passively managed Exchange Traded Funds ETFs that are linked to gold.
Nevertheless, I think it makes sense to invest part of your money in gold in the interests of diversification. However, because of the disadvantages mentioned, one should not overweight the gold content. You can hold gold in physical form – for example in the form of coins and gold bars. However, you pay a surcharge, especially with gold coins. You can also invest in gold stocks. Here, however, in addition to the fluctuations in the price of gold, you are also exposed to company-specific investment risks.
You can also invest in precious metal funds or in passively managed Exchange Traded Funds ETFs that are linked to gold. The ZKB Gold ETF AA CHF, for example, is popular with investors. This is listed on the SIX Swiss Exchange and is always 100 percent deposited with the physical precious metal. In addition, the gold is stored exclusively in Switzerland and there is no debtor risk, as it is a special fund in accordance with the Federal Act on Collective Investment Schemes (KAG).
As an investor, you always have the possibility of not only selling his shares, but can also demand a payment in kind in physical gold in the form of standard bars of 12.5 kilograms. The UBS ETF (CH) Gold (CHF) hedged (CHF) A-dis is also recommended. This also offers a right to payment in kind in gold when the units are returned.
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