How do you choose which precious metal to invest in?
Why is it risky to keep all your savings in paper money?
Why buying gold is a good idea?
Invited by a popular YouTube channel for a relaxed discussion, GOLD AVENUE CEO Alessandro Soldati answered all the top questions new and future gold buyers might have about gold savings and investing in precious metals.
“Some people, especially younger generations, might think gold is a ‘boring investment’, but it’s a must-have in your portfolio. As an asset, it’s relatively stable, has no big swings in price, and tends to increase in value over the long run.”
Tune in for an hour-long talk full of useful and practical questions about buying and storing gold, protecting yourself from inflation, and diversifying your portfolio.
Watch the interview here (automatic English subtitles available):
To turn on English subtitles, got to the bottom of the screen, click on Settings ➡️ Subtitles/CC ➡️ Auto-translate ➡️ English.
What is the episode about?
In a frank and open conversation with host Jérémie Brygo, Alessandro gives his take on investment, savings and buying gold, and also shares some eye-opening insights into the gold market.
Here are the key takeaways from the interview:
Why physical gold is a must-have in your portfolio?
“Some people, especially younger generations, might think gold is a ‘boring investment’, but it’s a must-have in your portfolio. As an asset, it’s relatively stable, has no big swings in price, and tends to increase in value over the long run,” Alessandro says.
“While the gold price has historically been relatively stable, it gained astonishing 50% in the past 2 years because of the Covid pandemic.”
How much of your investment portfolio should be in gold?
“You can think of gold as your ‘rescue piggy bank,'.”
“Gold does not generate any yields, so one probably shouldn’t put 50% of their wealth in gold. But physical gold protects your other wealth [from risks] … Thanks to this protection provided by gold I can allow myself to take bigger risks with my other investments.”
Why inflation might be more dangerous than you think?
“A lot of people don’t know much about inflation. They don’t realize that their money is losing value. Because for many, inflation is an abstract concept that hasn’t much impact on their daily lives. At least that’s what they think.”
“The biggest risk is to keep [all your savings in] paper money that is losing its value … That’s why it might be better to spread your money across different assets.”
Where do you store gold?
“If you store gold at home and want to sell it at some point, you will have to find a physical gold store you can sell it to, and it takes time.”
“There’s a lot of stories of people losing their physical gold. A client of my father was unable to find 20 kg of gold hidden somewhere in his house, and mentioned in an inheritance statement.”
“I’m not saying that storing your gold at home is not good. There’s a lot of people who want to be able to hold their gold in their hands, hide it someplace in their house, and pass it on to their family but there are certain risks attached.”
“GOLD AVENUE gives you access to a secure vault to keep your gold savings. If you decide to sell them, you can do it easily in one click, and sell it back to GOLD AVENUE at market price with 0% commission.”
How do I choose a precious metal to invest in?
“Everything depends on your risk appetite … Silver is more volatile than gold, and platinum and palladium are even more volatile [than silver].”
“Since both platinum and palladium are heavily used in catalytic converters, their value depends on the situation in the automotive industry, that’s why these metals are so volatile. So these precious metals will probably be more interesting for experienced investors.”
What investment strategy should I choose?
“DCA is often the best buying strategy for almost all assets … With gold, you should pay attention to the amount of money you would like to invest … With bigger amounts, it would be relevant to use the DCA strategy. When buying smaller products, it’s important to pay attention to the margin and the production cost.”
Do I have to pay taxes on precious metals?
“Silver and PGM group metals [platinum and palladium] are usually subject to VAT. On GOLD AVENUE, you can buy silver and PGMs VAT-free and store them in the Swiss Free Port, it’s like a duty-free area in the airport.”
“This gives you exposure to physical silver while saving you 20% on taxes [in France, the VAT rate on silver is 20%].”
Want to know more? Tune in to watch the full interview.
What is Frugalisme et Liberté Financière?
It’s the YouTube channel led by Jérémie Brygo, the author of the book called Un salaire sans rien faire (ou presque). The channel is for those who want to take control of their money and create a financially secure life.
We want to thank Jérémie and the Frugalisme et Liberté Financière team for this great opportunity to explain what GOLD AVENUE is about, and share our thoughts about the precious metals market that hopefully will be useful for beginner investors and help them find the best way to start their gold savings.