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Outrunning the stakes: why did the Russians start massively investing in gold?

Against the backdrop of the current situation, Russians are massively investing in gold. Demand for gold bars and coins in Russia in the first half of 2022 amounted to 12 tons: 6.5 tons in the first quarter and 5.5 tons in the second, such estimates are given by the World Gold Council (WGC). Why exactly precious metals are gaining popularity again and what gold assets should I transfer money from deposits to?

“High demand for gold is due to geopolitical instability and fluctuations in the global economy. The period of high rates is over, and investors are massively transferring money from ruble and dollar deposits to alternative assets such as gold,” – shared with the editors of “Komsomolskaya Pravda” expert at Tinkoff Investments. Tinkoff Capital Management also noted that over the past month, the value of the net assets of the Tinkoff Zoloto fund has tripled – from $15 million to $43 million.

So how, in the new reality, to overtake low deposit rates and at the same time maintain and increase your savings? We tell everything about one of the reliable assets – gold.

Gold

Uncle Scrooge McDuck was right when he preferred to keep his capital in gold coins. Experts agree that this asset is a real safe haven and an island of stability for those who do not want to take risks, but are eager to increase their savings.

There are several ways to invest in this metal: bullion, coins, an unallocated metal account (OMA), exchange gold, shares and bonds of mining companies, funds.

What gold to buy

To begin with, let’s figure out what gold looks like and where it is sold, which you can buy and physically bring home.

You need to go to the bank for a precious purchase. A gold bar is usually sold in a package, with a manufacturer’s certificate and a large set of documents.

It is better not to open the packaging, as it protects the metal from damage and scratches. Their appearance on the ingot is not just undesirable, but akin to a disaster. Indeed, with each new scratch, the chance to hand over gold to a pawnshop at the price of scrap increases. Banks accept only perfect bars and coins.

The weight of the ingots can be different, depending on the wallet and the wishes of the client – from 1 gram and above. Measured gold bars are usually considered to be bars weighing from 1 to 1000 grams. Although there are standard ones, in 11 – 13.3 kg, but for this you will have to pay an impressive amount.

Another important detail is the manufacturer’s certificate. The loss of this document is worse than scratches, without it the bank will not even take a perfect ingot.

The document contains the name of the metal, the sample, the number, the weight of the ingot, the date of manufacture and the name of the manufacturer. In a word, a guarantee!

Keeping a personal gold reserve

Keeping a real gold bar is nice and beautiful, but a little scary. So in reality, it is unlikely that you will be able to touch gold coins like a cartoon character, because gold of the highest standard is a soft metal, and any scratch or damage will write out a ticket to a pawnshop for a precious bar.

Banks are reluctant to accept “crippled” assets, and if the injuries are very large, then they will have to be handed over at the price of scrap, which is almost half the exchange price.

So, to store the house, you need to purchase a safe and take care of the security of the apartment so that cunning citizens do not covet someone else’s good. Or rent a safe deposit box, and this will also result in considerable expenses.

Another obligatory expense item is the commission to the bank when buying an asset. Until March, they had to pay 20% VAT on each bar, now the tax has been abolished, but the bank will still keep its 10-15% of the exchange price.

Even with such difficulties, the game is worth the candle. Over the past three years, gold has gained more than 57% in price. Today, the price per gram in banks starts from 4,000 rubles. It is not worth selling it yet, the economy is storming, but the asset will be able to reliably keep your savings.

An unallocated metal account (OMA), which can be opened at a bank, will save you from worries about storing gold. This is a kind of hybrid of a bank account and an investment product.

When opening a regular bank deposit, you choose the currency in which the savings will be stored: rubles, euros, dollars. And in the case of CHI, the choice will have to be made from precious metals: gold, silver, platinum.

Pros – an organization will monitor your precious ingot, but you will have to pay a commission for this service.

Cons – no interest is due to the owner of such an account.

There is an option that allows you to solve two problems at once: to provide storage, and save your nerves, and also increase capital. This is the stock market.

You can act here in different ways, for example, buy grams of gold. Stock exchange gold is not ephemeral numbers on the monitor, but quite specific bars that lie in the storage of the exchange, or rather, parts of these bars. This saves you the hassle of storage. Buying such gold is quite simple. To do this, you need to open a brokerage account. Today, this can be done with a mobile phone and in a few minutes.

Also, investors should take a closer look at the shares of gold mining companies.

These papers cannot be bought by coming to the bank. They are also traded on the stock exchange, but you can’t look there at your leisure either, and you won’t be able to take home a stack of profitable assets.

In the age of informatization, everything goes digital; in order to trade on the stock exchange, it is enough to install a mobile application for investment. The choice of those today is in abundance.

After replenishing your account with your bank card, you can proceed to the formation of the basket. This is how all the assets you bought (stocks, bonds, currency, funds) will be called.

When you buy a share in a company, you become a co-owner of a share of the business and are entitled to a portion of the company’s future profits in the form of dividends. Also, in case of successful operation of the company, the price of its shares may rise and bring additional income to the investor if he decides to sell these shares.

An example of a gold mining investment:

– Polyus, a Russian gold mining company, is one of the largest in the world and the largest in Russia in terms of gold production (as of July 11, one share was worth 8,376 rubles);

– “Polymetal” – is engaged in the extraction of precious metals in Russia and Kazakhstan (as of July 11, one share cost 363 rubles per share);

– Petropavlovsk PLC – Petropavlovsk Group of Companies, one of the largest Russian mining holding companies (share price as of July 11 – 3.42 rubles);

– Lenzoloto is a Russian gold mining company located in the Irkutsk region (share price as of July 11 is 8,360 rubles).

– “Seligdar” – the company is engaged in gold mining in the regions of Russia and is the only producer of ore tin in the country (share price on July 11 – 40 rubles).

BY THE WAY

Invest and win a bullion!

You can not only buy a real gold bar, but also win!

On June 1, Tinkoff Investments launched a promotion where 1,000 real gold bars are raffled off.

To participate, you need to register in the investment application, invest a thousand rubles in exchange-traded gold or silver, shares of gold mining companies, funds for gold and other assets. The list is big. One thousand – one ticket, the more investments, the higher the probability of winning. You can increase your chances of success by inviting a friend to open a brokerage account.

Try your luck and take part in stock until August 19 (inclusive), and on August 20 the results of the draw will be announced.

TOTAL

The best strategy is not to put all your eggs in one basket

In stock parlance, this is called “diversification.” It is best to invest in various instruments: buy gold, stocks, bonds. Even if one asset falls, the other will go up and save the day. And taking into account the fact that there will be precious metals in the basket, the risks are protected on all fronts.

By the way, you can not only collect a basket of securities yourself, but also entrust this sensitive issue to experts. For example, on the platform auto follow “Tinkoff Investments” you can choose a suitable investment strategy from an expert investor, subscribe to him and automatically carry out the same transactions as him. The authors of the strategy are users of the Pulse social network: well-known managers and traders. The subscriber just needs to choose a locomotive and attach his portfolio to it.

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