Where to invest? What is a well-balanced portfolio like? Is the allocation of money to more types of the same asset diversification?
A well-balanced investment portfolio is such a portfolio that will always work as effectively as possible. If investments are to be well - balanced, it is necessary to allocate money wisely to multiple queues. It is ideal to combine risky higher-yielding assets (shares) for example with property and with sustainable investing in gold. A common mistake when assembling a (risk-adjusted) diversified portfolio is an investment in different variants of the same asset. A truly diversified portfolio IS NOT the place where e. g. only shares occur even if from various companies. This principle can often do more harm than good.
What does that mean? How to compile it correctly?
An investment portfolio is a summary of investments in assets of various types (even in more assets of the same type). You can always choose how to compile it. Quickly profitable investments are often associated with high risk. On the contrary, a safer portfolio goes hand in hand with lower yields. The best way of compiling investment consists in compiling a long-term stable portfolio working in every situation. It may be achieved by following the rule of thirds and by allocating money to more parts which cover their backs mutually.
TAXES – INCOME TAX
Do I have to pay the income tax as a natural person when selling gold? Under what conditions can gold be sold without tax by a company or by a self-employed person?
The sale of gold and silver is regarded by the state as a sale of movable property. The sale of precious metals is therefore exempt from income tax (the Act No. 586/1992 Sb., Section 4). However, this applies only to natural persons. In a case of buying precious metals for a company, the investor must tax gold or silver when buying if it is held for less than 5 years. After the expiry of the 5 year period, the company does not have to pay the income tax either. The standard income tax rate is 15 % for natural persons (self employed persons) and 19 % for companies.
Why is it the basic unit in weighing gold? What is its history and how to convert it to grams or pounds?
Troy ounce (oz) is the basic unit of mass on the national and international markets of silver, gold, platinum and other precious metals or gemstones. The name comes from the French town of Troyes, where it was first use in trade in the Middle Ages. One troy ounce = 1/12 troy pound = 31,1034768 grams; 32.15 troy ounces = 1 kilogram.
FINENESS / PURITY
How to recognize really high-quality gold and how is its purity measured? What does a carat unit mean and a what is a millesimal method?
The degree of purity represents the purity of gold. Gold sold by IBIS INGOLD® is gold of highest quality and is characterized by the highest purity of 999.9/1000. Sometimes also the unit carat is mentioned. For carats, the definition is that pure gold containing 1000 g/kg has a purity of 24 carats. One carat corresponds to 1/24 of the weight, so the pure metal has fineness of 24 carats. The millesimal fineness (999.9/1000) is then de facto similar – the number (usually three digits) determines how many parts of pure metal is in thousand parts of the alloy.
How is the price of gold determined? Who decides on it and how often can it change? What about the prices of other precious metals?
The price of gold, silver, platinum and palladium among thirteen accredited members – Bank of China, Bank of Communications, Goldman Sachs International, HSBC Bank USA NA, Industrial and Commercial Bank of China (ICBC), INTL FCStone, Jane Street Global Trading LLC, JP Morgan Chase Bank N.A. London Branch, Koch Supply and Trading LP, Morgan Stanley, Standard Chartered Bank, The Bank of Nova Scotia –&ScotiaMocattA and The Toronto Dominion Bank. Since 2015, the price fixing is carried out electronically under the supervision of the IBA – ICE Benchmark Administration. It is announced twice a day – the so called morning fix and afternoon fix. Gold fix is announced at 10:30 AM and 3:00 PM, the silver fix at 12:00 PM (noon), and the platinum and palladium fix at 9:45 AM and 2:00 PM London time.
WHAT IS LBMA
What does the association govern and controls? Who must follow the rules set by the association?
It is an acronym for the London Bullion Market Association, which is an association that supervises gold trading and issues the rules for the London Metal Exchange (LME), where the precious metals are traded. It is often associated with the certification GOOD DELIVERY, which proves that you are investing in gold that is liquid, precisely because of the quality guarantee that the London Bullion Market Association (LBMA) regularly checks.
GOOD DELIVERY CERTIFICATION
Why is it worth looking for gold with this certification? What does the manufacturer have to do to get such certification and what does it mean when he has it?
The main requirements that a refinery or other gold supplier must meet to be listed in the GOOD DELIVERY list of manufacturers and traders:
- The supplier has to produce (refine) the metal (gold and other precious metals) already for three years at least.
- Produces (refines) or trades in one calendar year in an amount of minimum of 10 tons of gold and 30 tons of silver.
- Must have a minimum registered available capital of £ 15,000,000 (in any currency).
The “Good Delivery” list is essentially a list of recognized refineries that can market their gold under specified conditions.
List of gold members of LBMA is here. The PAMP refinery® is one of them.
GOOD DELIVERY denotes a quality standard and has three meanings:
- It is a gold standard traded on the London Metal Exchange, which has historically been recognized by members of the London Gold Market. It is a declaration and determination of the parameters of gold that members accept in their trades, without any comments and acceptable to all members.
- Getting a Good Delivery membership is not easy. A manufacturer or refiner who can label his products in this way must comply with strict standards, control mechanisms and tests to be listed in the LBMA list.
- The GOOD DELIVERY standard is now a widely recognized standard for the quality of bars to be accepted as “standard” gold in the commerce.
WHY A BAR
What are the benefits of Lady Fortuna gold bar? What makes them unique and what do I get when I buy it?
Gold investment bar PAMP® with Lady Fortuna™ design is protected by the eriscan™ technology. The investment bar has a fineness of 999.9/1000 and is packed in a plastic package, which is an integral part of the certificate, which has all the essentials required for an investment gold – the country of production, refinery, weight. Each bar has its own unique number, which appears on both the certificate and the bar itself. The PAMP® bars up to 100 g with a stamped Fortuna design are the bestselling bars in the world. Their easy recognizability, thanks to the mint, is a guarantee of high liquidity for every precious metal dealer. IBIS InGold® guarantees the purchase of these goods.
Why is it worth investing in investment coins? Why they are different from normal ones and what is the difference between investment and collector coins?
Coins are issued as an official tender of a particular country and have a nominal value. It is therefore money. This may be an advantage when transported abroad. Even if they are made of one of the precious metals – most often gold or silver – the owner usually avoids possible duties, because the duty is not imposed on the money. However, the specific conditions for importing precious metal coins may vary according to national regulations. Investment coins do not have a limited circulation, they are marked only by the year of issue and their number is given only by the demand, the value is then given only by the price and weight of the precious metal from which they are made. Collector coins have a limited circulation and their price is determined not only by the price of the metal, but also by the demand of the collectors and may differ diametrically from the price of the metal.