Gold Investment Advice

Gold glitters again – not only in the eyes of investors, but also in those of the manufacturer. Investment houses eagerly bring products to market, based on the safety needs of targeted investors. Often the name but promises more than he can keep – or the costs are significantly higher than for established products.
Trigger for a series of new offerings, the success of the Gold Fund, the money of investors in precious metal ingots invest. The largest, the SPDR Gold Trust, hoarding more than 1000 tons of gold and more than the Swiss central bank.

The SPDR fund is in Germany, however, not authorized for distribution, just as similar offers from Julius Baer and the Zürcher Kantonalbank. U.S. investors so far, therefore, access to the Xetra-Gold and Gold Bullion Securities (GBS) – with precious metals deposited bonds.

As the “golden solution” will be a few days since the fund-Promont Golden ProtectStar advertised. “Uncertainties in the capital markets demand a product that the security needs of the investors’ expectations,” as stated in a press release. Unlike the name at first glance suggests, makes the bulk of gold is not out of the portfolio – not more than ten percent of the fund may be used in documents such as Xetra-Gold or GBS invests his. The fund manager primarily uses interest rate on short-term investments. Further selection criteria are the impeccable creditworthiness of issuers and connect the Institute to a deposit insurance fund “, it says further. Low-risk investments mean low returns – and these are covered by the annual fee of up to 1.15 percent significantly diminished. This is a initial fee of up to five percent.

Already a few weeks longer at the start is Hansa Gold. For the Signal Iduna product advertises with the slogan “Gold in your portfolio. The first German gold fund.” The fund, however, must not exceed 30 percent of physical gold buying – allowed the German Investment Act does not. The rest of the money is flowing into other paper gold, silver certificates and government bonds. The management may also buy inflation-linked bonds.

The latest offer comes from Solit capital and is a closed fund. The money of the investors in gold and silver bullion and invested in the safe areas of the Zurich Freilager AG hoarded. The investors decide what proportion of gold and silver in the flow.

“Many brokers and clients have approached us that they have a gold independent investment bank want to hedge against systemic risk,” says CEO Robert Solit-Vitye. As head of the financial distribution VSP, he knows what customers needed. His partner at Solit Dümmlers is Karsten, CEO of the agent pools Netfonds. For the Gold & Silver Solit, they created a special issuing house. “It was important to us direct, absolute possession of the precious metals,” says Vitye. “Behind the Xetra-Gold is well-known houses are, ultimately, it is but a bearer bond, which an issuer risk.”

The detour via a closed-end funds, however, is not exactly cheap. Investors pay five percent premium, plus another 3.5 percent for sales and 1.5 percent for the fund concept. From 21,000 Euro from the outset will therefore only 19,000 euros in gold and silver. The annual burden amounts to 1.8 percent of the deposit value. About his participation before the expiry of three years, sold, once again pays three per cent fee.

“The Fund costs by purchasing more than benefit,” defends himself Vitye. “The fund will acquire the precious metals to interbank rates, investors will save up to twelve percent for gold and up to 40 percent for silver. When Silver is also the VAT, because we are the bars in the transit area of store.”

Nevertheless, a constant price of precious metals provided that melted 21,000 Euro investors capital after 20 years at around 13,200 euros. Xetra-Gold will cost in the year just 0.36 percent, the surcharge for buying and selling on the stock exchange does not exceed one percent. After 20 years, the cost advantage is more than a quarter of the deposit.

If the financial system will collapse over night, are probably neither gold nor Xetra Solit Gold & Silver is the best choice. Then may be lucky, who gold coins in small denominations under the pillow has.

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