Buying investment gold · bars, sizes and storage

Investment gold is one of the oldest ways to preserve value. First-time buyers need to choose a size, check the certificate and think about storage. And the bar should be easy to sell later. Here are the key points.

What counts as investment gold?

Investment gold means bars with a very high fineness of at least 995 parts per thousand. That matters, because in Germany investment gold is exempt from VAT under § 25c of the German VAT Act (UStG). With jewellery you also pay for craftsmanship, design and tax. With a bar you are essentially buying the metal itself.

The C.HAFNER fine gold bars we stock at Wengengasse have a fineness of 999.9, which means 99.99 per cent pure gold. For comparison, a ring stamped 585 is 58.5 per cent gold, with the rest made up of other metals.

A word of perspective: the gold price moves up and down. Investment gold therefore tends to suit a longer time horizon rather than quick trades. If you are unsure whether gold, or how much of it, fits your personal situation, it is worth talking to your tax or financial adviser.

Minted or cast?

Bars are made in one of two ways:

• Minted bars have a smooth, even surface and a crisp design. They usually come in a sealed card. We offer minted bars from 1 g to 100 g, plus 25 g and the troy ounce: ¼ oz, ½ oz and 1 oz (roughly 31.1 g).
• Cast bars are poured into a mould, which gives them a more rustic look. At larger weights they often carry a slightly lower premium. We stock cast bars from 1 oz to 1,000 g.

Only the fine gold content matters for the value. Whether you prefer the smooth or the rustic look is purely a matter of taste. Small minted bars are a popular gift for a birth, a wedding or a graduation, as they look lovely in their card.

Choosing the right size

Every bar carries a premium on top of the pure gold value, covering production, minting and trading. Per gram, that premium is higher on small bars than on large ones. That leaves you with a simple trade-off:

• Small units (1 g to 20 g) are flexible. Later on you can sell exactly as much as you need. In return you pay a little more per gram.
• Medium sizes (around 1 oz or 100 g) strike a good balance between price and flexibility.
• Large bars (250 g, 1 kg) are better value in relation, but can only be sold as a whole.

A mix often makes sense: some gold in large bars for the better price, some in small bars in case you only want to sell part of it later. The sizes we have in store change from time to time, and we are happy to order larger bars on request.

Certificate and authenticity

Look out for these points:

1. LBMA Good Delivery. The London Bullion Market Association keeps a list of refineries whose gold is accepted in international trade. Bars of 999.9 fineness from such a refinery are easier to sell on later.
2. Sealed packaging with a serial number. Every C.HAFNER bar comes in a sealed CertiCard. You can check authenticity and condition without opening the packaging.
3. Certificate of authenticity. The enclosed certificate shows the serial number, which should match the number on the bar.

It is best to keep sealed bars sealed. Ideally they are only checked at resale, together with the dealer, so the seal stays intact and the bar keeps its full tradability.

Where the gold comes from

C.HAFNER is a precious metals refinery based in Wimsheim, founded in 1850. Its bars are made from secondary gold, in other words recycled old gold. They are made in Germany.

Storing your gold safely

If you own gold, it pays to think about where to keep it before you buy:

• At home a firmly anchored safe is a good choice. A loose hiding place in a cupboard is not.
• A bank safe deposit box is an alternative if you do not need regular access.
• Keep the paperwork separate. Store the receipt and certificate apart from the bar. If one goes missing, you still have the other.
• Take photos. A photo record with the serial number visible is helpful for insurance.

It is also worth asking your home insurer up to what amount valuables kept at home are covered.

Buying and selling back in Ulm

At our shop on Wengengasse you can buy fine gold bars from C.HAFNER. The price depends on the current gold rate and the bar size, so we are happy to quote it on request. And should you wish to sell later, we buy investment gold back at the daily rate. For that we need a valid form of ID, as required by law.

If you would like to hold a bar in your hand, do drop in. We will answer your questions about sizes at the same time.