Unlocking the World of Gold Investments: Coins or Bars?

Many who consider investing in gold wonder about the most effective instrument for preserving capital. At first glance, gold bars seem like an obvious choice, but in the Russian context, there are several nuances that make investment coins much more appealing.

Let's explore what types of gold coins exist and why they are often preferable for investing in gold than traditional bars.

Gold Bars: Hidden Challenges for Investors in Russia

In Russia, gold in bars is considered a raw material for industries, such as jewelry. This status entails mandatory VAT taxation.

Thus, when acquiring a gold bar, an investor automatically faces an additional 18% on the cost, which significantly reduces its appeal as a means for investing in precious metals.

Liquidity and Specifics of Gold Bar Circulation

The process of selling gold bars is also associated with certain complexities. To verify the authenticity of a bar, the bank conducts an examination, and the costs of this procedure are borne by the owner.

This examination takes time, and not every bank dealing with precious metals is willing to buy back bars from private individuals. Furthermore, selling bars outside the banking system can be risky, as there is a possibility of "falling under an article" for illegal circulation of precious metals.

1. The purchase of a gold bar is subject to 18% VAT.
2. Selling requires a mandatory and paid expert appraisal of the bar at a bank.
3. Not all banks are willing to buy back bars from individuals.
4. Selling outside the banking system may be classified as illegal trafficking in precious metals.

All these factors make gold bars in Russia not the most convenient and liquid instrument for investments.

Coins as an Alternative: A Variety of Choices for the Investor

Considering other options, let's look at coins made of precious metals. They are divided into two main categories: investment coins and commemorative coins / jubilee coins.

• Investment Coins: Designed for investments in physical gold or silver.
• Commemorative / Jubilee Coins: Issued in limited editions, often with exclusive designs, which increases their value and cost for collectors.

Both categories of coins are not subject to VAT. Commemorative coins are ideal for collecting or as a valuable gift due to their rarity and unique design.

However, if the goal is pure investment and not numismatics, then investment coins are worth considering.

Investment Coins: The Ideal Instrument for Capital Preservation

By process of elimination, we conclude that investment coins represent the most interesting category of physical assets. They are, in fact, an ideal instrument for preserving savings in current economic conditions.

Example of a Reliable Investment: The St. George the Victorious Coin

A striking example of these advantages is the Russian St. George the Victorious gold investment coin. It contains 1/4 troy ounce of 999 fine gold (approximately 7.78 grams), representing pure physical gold owned by the investor.

This coin is legal tender in the Russian Federation. This means it can be sold to anyone, anywhere, without any legal restrictions, which significantly simplifies the sale of gold bars.

Key Advantages of Investment Coins

1. Physical `gold` ownership: Contains an exact weight of high-purity gold (e.g., 1/4 troy ounce of 999 fine gold).
2. Legal tender: Can be sold to anyone, anywhere in the Russian Federation without restrictions.
3. Protection against counterfeiting: `Gold coins` are extremely difficult to counterfeit due to the unique properties of gold (density, color). Furthermore, counterfeiting legal tender is strictly prosecuted by law.
4. No VAT: The acquisition of `investment coins` is not subject to Value Added Tax.
5. Minimal spread: The buying and selling of such coins occurs with a minimal `spread on the Russian market`.

Thus, investment coins offer more liquid gold and a convenient way to preserve and increase wealth, free from many disadvantages inherent in gold bars.