Since Richard Ferrand, Président du parlementaire, a décidé d’augmenter la fiscalité des métaux précieux, investors are unsettled. They are beginning to wonder whether investing in gold is still advantageous. With the burden of the tax on resale, this new taxation therefore implies measuring the risks before getting started.
Investing in gold differently
On the London Stock Exchange, the prices of the yellow metal are quivering. We will still have to wait before gold recovers. In the meantime, it’s better not to pin all your hopes on this rare metal. « The share allocated to gold varies according to clients’ risk profiles, but is generally in the range of 2 to 3% of the total » notes an official at Naxitis Wealth Management.
According to the expert, the most important thing is not to make profits, but to take advantage of this diversification tool when prices rise. A turbulent economic situation benefits gold for the simple reason that it moves counter to the stock market.
Some tips to benefit from the precious metal
To enjoy the benefits of gold, it is sometimes profitable to buy physical metal. Wealthy investors can, for example, opt for bullion bars while less affluent ones can choose small gold bars. For your security, they should be stored in a bank vault.
Under the new taxation in force, taxes and duties must also be taken into account. When reselling your asset, you must show proof of purchase or risk being taxed at 11% of the sale price, compared with 10% in 2017. However, the 6% tax has not changed for the resale of jewelry and collectible coins.
Alternatively, it is quite possible to limit the portion paid to the tax authorities. This involves buying tokens and legal-tender gold coins. The exemption applies to these savings instruments. Tokens have retained the flat-rate tax of 6.5% for transactions over 5,000 euros and legal-tender gold coins up to 5,000 euros.
Alternatively, you can also buy an Exchange Traded Fund that replicates the value of gold. In particular a Gold Bullion fund which has the advantage of being backed by physical gold. Thus, the ETF can move at the same pace as the precious metal, for an annual fee of 0.4%.