More and more small investors are rushing into gold – rightly so?

class=”sc-29f61514-0 kHgAwW”>

In Switzerland there is traditionally a golden vrene from Gotti and Götti or grandparents for births, baptisms or 18th birthdays. The traditional gift is getting more and more expensive. In 2000, Vreneli still cost 50 francs. In 2010 it was already 220 francs, today it is 350 francs.

Goldvreneli’s price development – after all 58 million of which were forgotten in Swiss jewelery boxes, bank vaults or dusty and attic – is symbolic for the development of the gold price in general. For years he knew only one direction: up. At the beginning of the month, an ounce of gold in US dollars even climbed to an all-time high.

Gold merchants flooded

The gold price is supported by recession fears, bank tremors, high inflation, weak dollar and geopolitical uncertainties. This is also attracting more small investors who want to invest their savings in tangible gold coins or bullion. “Our sales have increased fivefold compared to pre-pandemic,” calculates Christian Brenner, 43, managing director of Swiss gold trader Philoro.

Not only are more and more people wanting to invest in gold, they are also getting larger and larger amounts. 250 gram gold bullion is currently one of the bestsellers at Philoro. After all, 14,000 francs a piece!

You need quite a bit of money on the high edge for that. Christian Brenner recommends investing between 10 and 15 percent of the assets invested in the current environment. st. Caroline Hilb (45), head of investment strategy at Wales Kantonalbank, advises a maximum of 5 percent: “Gold is a valuable investment. But people want to buy too much.”

Because despite its reputation as a safe haven: “The price of gold is volatile,” warns Hilb. In addition, it can lose 20 percent in a very short time,” he said. But since even young children know that gold is valuable, people are more willing to put up with such price fluctuations. “There is no other investment that people are so generous with when they lose value,” Hilb says. Gold occupies a special position among investors.

Bars in the swap instead of under the bed

If you want to get into the gold business, you have two options: You can invest in gold ETFs (Exchange Traded Funds) in the stock market. They depend on the price of gold and reflect it practically exactly. By investment, you own the gold, but you do not physically hold it. Instead, you buy a stock of gold bullion. ETFs are gold investments for small people, as this ratio can be very small.

Alternatively, you can physically purchase gold. The classic gold bar weighs 12.5 kilograms and is worth over 700,000 francs at the current gold price – this is not for small investors. Instead they use smaller sticks or coins. In addition to the popular Swiss gold vrene, there is the Austrian gold philharmonic, or Australian gold nugget, which costs about 1800 francs an ounce. “You can keep them in your house for up to 20,000 francs,” advises gold trader Brenner. However, ideally, it should not be forgotten and dust should not collect on the floor – in the safe.

Source :Blick