Berlin. Gold is in demand – and the price is constantly reaching new records. Does it make sense to buy now? An expert dares to make a bold prediction.
- There seems to be no stopping: the price of gold continues to reach new records
- Is the end of the hype in sight? Or is it still worth buying gold?
- We asked an expert
The Price of gold New records continue to be set. People invest in coins and bars. Others use the opportunity to make money from jewelry. But is it a good time to buy or sell gold?
“There is never a right time to enter or sell. “Looking back, it was always the right time for gold, which we look at in the medium and long term, because of the continued positive development of upward prices,” says Christian Rauch, CEO. Degussa gold trademarket leader among independent bank precious metal dealers in Europe with an annual turnover of 1.5 billion euros – about half of which is in Germany.
“It is best to buy regularly in small tranches. You leave it there and the portfolio settles down nicely.” At the same time, the manager is sure of that Gold In the long term, it will become more and more expensive with fluctuations: “Gold will increase to $5,000, I can’t say yet.”
The price of gold has increased in recent years incredible price rally laid down. Within five years it rose from 1,344 euros per troy ounce (31.1 grams) to over 2,500 euros, about 30 percent in the last 12 months alone. Even private individuals with less wealth are investing in gold, which Degussa has noticed in the increased number of customers. Other coin dealers are also reporting increased demand.
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Gold: The desire for security
“The uncertainty caused by Corona, the war in Ukraine and the weak economy are putting many to invest in gold. People want physical value and therefore security for their money,” believes Rauch. Those too Central banks buying more gold as currency reserves.
Gold under the microscope: A Degussa employee checks the color and weight of the gold chain.
© FUNKE Photo Services | Sergei Glanze
But you shouldn’t put all your money in gold, says Rauch: “But it can be between 10 and 15 percent of your portfolio.” Why him to the Increase in value believe? “Gold has been a means of payment for 2,000 years. The amount of gold in the world is stable, but the demand is increasing.” The cons: Gold and precious metals pay no interest, and it costs extra money to store them safely in safes or vaults. Their increase in value occurs only through the increase in price.
Also interesting
It is clear that customers are more interested in the Degussa branch in Berlin. Even before the shop opens, eight men and women between the ages of 20 and 80 are waiting. At the counter behind bulletproof glass you can choose between Bar made of gold, silver, platinum and palladium from 1 gram to 1 kilogram as well as classic gold coins – such as the Krugerrand, nugget or maple leaf.
99.9 percent of buyers choose Gold. “The purchase price is based on the current trading price,” says Stefan Hasen Knopf, branch manager. “We constantly update the courses. It happens that customers pay a different price within a few minutes or get different sizes when they buy.”
Gold is sold tax free
The gold bars sold by Degussa are LBMA certified – they come from mines where… international quality standards for Gold mining stick to it.
Branch manager Stefan Hasen Knopf talking to a customer.
© FUNKE Photo Services | Sergei Glanze
Many customers also come with jewelry, Clocks or dental gold for sale. “Anyone can come to us. We assess and weigh the precious metal content of the jewelry you bring with you for free,” says Hasen Knopf. The craftsmanship of jewelry or gemstones is not honored, “because we only buy the precious metal to melt it down again.” This is also common with other gold traders.
“When we find fine designs, works of art, special brands such as Cartier or antiques, we encourage customers to offer their jewels to an auction house or jeweller. Sometimes there can be more than just the precious metal value,” reports Hasen Knopf. In the branch, each customer is allowed to put what they have brought on a tray one after the other Assessment place. “Depending on the size, a consultation lasts between 10 minutes and three hours.”
The stamp on gold or silver is not always correct
First, a metal expert checks with eyes and hands whether the color and weight are correct. The metal content and weight of each piece is then determined in a digital analyzer. Because not every piece of jewelry is always the right one Gold or silver stamp excellent. The embossed numbers 333 or 585 indicate that the piece contains 33.3 percent and 58.5 percent gold, respectively, with the rest often being silver, copper or tin. “Sometimes there is less gold than what was said,” says gold expert Lina Repschläger.
A customer brought a gold necklace and bracelet. The gold engraving is correct. The Gold chain weight 28.10 grams – it makes 1810.76 euros on this day, the bracelet weighs 19.70 grams – so 741.70 euros. “Can I sleep on it for one night?” she asks the experts. “Sure, feel free to come back another time.” On the other hand, another gentleman immediately sold the gold chain he brought with him. He wants to use it to pay for car repairs.
A customer values their gold and silver jewelry.
© FUNKE Photo Services | Sergei Glanze
“There are many stories about why people part with their jewelry, including sad ones,” says the branch manager. Sometimes you don’t want to see the earring your ex gave you anymore, sometimes jewelry has gone out of fashion. Others who inherited. Some need money to pay for funerals. The reasons are as varied as life.
Buying and selling: This is how high the dealers’ margins are
Metal traders earn money from both Buying and selling. At Degussa, the margin on metal sales is between 1 and 4 percent. ” The larger the gold bar, the lower the percentage markup,” explains Hasen Knopf. When buying, dealers charge a discount on melting costs.
When selling jewelry and gold, from the point of view of consumer advocates always get multiple offers. Specifically, the North Rhine-Westphalia Consumer Center recommends going to buyers who are certified as gold buyers and who are members of the professional German coin trade association.
Basically, you should be alert when buyers are trying to come home. “They could spy on you for later purchases,” consumer advocates said. The police also advise not to store gold bars at home – not under the pillow or inside Safe. Gold is best in a bank deposit – which of course costs money every month.
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Meanwhile, online orders are on the rise in the industry. Degussa now sells about 20 percent of its gold online – The trend is rising. Depending on the size of the order, delivery is by logistics or by armored car, says Rauch. Sending by post is problematic because packages are only insured up to a certain value, the consumer advice center warned. All this must be taken into account with Gold. But the Degussa boss is convinced: “We expect positive developments in Degussa and we will have a very good year.”