Gold, like silver, is almost equivalent to having cash. “They are the only assets that never failed in 5000 years. Since they are tangible with inherent value, their purchasing power will never fall to zero,”says Michael Maloney, writer, metal expert, author of “Guide to investing in gold and silver”. “Investing in them represents a safe haven, which becomes more interesting during periods of economic problems, wars, terrorism and natural events, and has a proven record of good performance amid inflation or deflation,” he says in his book regal assets reviews.
How to invest in gold from Argentina?
The quintessential reference to buy gold as an investment is the City Bank. First warning: it is important to be very careful of the place where the metal is acquired to ensure its purity and authenticity, and not take a fiasco years later, when you want to sell it. “The fine gold bullion of Banco Ciudad is a product that can be considered in two ways: as an investment and as a raw material. In the first case, it would be a savings value for medium and small investors. Even in recent years, small investors prevail over medium-sized ones. In the second case, gold is worth as a base material for goldsmithing, electroplating and medicine, ”explains Carlos Leiza, manager of Social and Pignoratic Banking at Banco Ciudad.
The entity sells only 100, 50, 10, 5, and 1 gram gold bullion in physical form and does not work with tenure certificates: whoever acquires it must take it either to their home or to a safe deposit box; you cannot leave it in the bank “in custody.”
The minimum investment is $ 510 (1 gram ingot). The key data for any investor: “AFIP authorization is not required to complete marketing operations for fine gold bullion,” says Leiza. This is basically because the purchase is made in pesos, he adds. “Nor is there a ceiling for hoarding and acquisition. Of course, the amount to buy depends on the client’s ability to justify the origin of the funds,”says the executive.
Gold is a commodity that has an international price. How is the price calculated in Argentina? The City uses the international price of the Troy ounce as a basic parameter. “But, on this base value, the local variations, corresponding to the quotation of the US dollar of the bank itself and the margins of variation of profitability, influence. It follows that any fluctuation in the international price will affect that of the entity. But the latter will suffer independent variations from that,”says Leiza.
Investing in gold and silver represents a safe haven, which becomes more interesting during periods of economic problems
Judging by analyst projections, it would be time to incorporate gold into the investment portfolio, since it is below its maximum levels and, in addition, amid international tensions and market fluctuations, it continues to demonstrate its strength. According to Bloomberg, in 2014, the increase in gold bullion prices exceeds the valuations recorded in equity, US Treasury bonds and bonds.
Today, the Troy ounce is priced at an average of US $ 1284. “Although, in 2014, it did not reach US $ 1543.2, which was the average of this metal before the 2006 price boom. The long-term horizon it is positive, “predicted the World Gold Council.” Although, in the first quarter of the year, central banks decreased their demand, the prospect is that they maintain their purchases as a strategy of investment diversification and risk management, “said the global entity, in a report.
Leiza believes that local demand, too, will tend to increase. “We understand that a bullish run in the quote will give investors new interest to reposition themselves again in gold. And, in this, the impossibility for the investor to access the dollar is decisive, so he uses other exchange values, including gold, as happened during the first stage of the exchange rate”.