We are again facing a time of the year in which spending tends to skyrocket due to the increase in consumption. Investors are no different with this philosophy, particularly given the performance of the markets in recent years. But for many who look cautiously at the bags and wonder when this bullish rage is going to break out, their optimism is mixed with a growing sense of unease regal assets.
Fortunately, there are other investment options that can help you protect your wealth and defend against falling markets. In this sense, gold is among the assets to take refuge in adverse situations. Analysis firms such as Jefferies or RBC talk about why it is interesting to bet on gold metal and why it can be attractive to incorporate it into a diversified portfolio thinking about next year. 1. The legality of having gold in the portfolio Most investors today probably do not remember that it was once illegal for citizens to have gold in possession. Thanks to the FDR executive order in 1933, and subsequent legislation passed in 1934, it was forbidden to have non-numismatic gold coins. That made it impossible for the precious metal to be invested to safeguard wealth. Everything changed in 1975. Now that gold was not only dominated by governments and allowed to move freely in world markets, its price began to rise. And that meant that investors wanted to access it. Well, this liberalization of the asset is still beneficial for the markets in 2020. And in the face of uncertainty, this condition is always used to acquire a greater volume of assets. 2. The profitability of gold in 2019 With the upward trend of the Stock Exchanges of recent years, the gold yield had stagnated, which led even the investors of raw materials to wonder if gold metal was a good investment. The course of gold this year has left those questions in oblivion, since its earnings have matched or exceeded what even the most optimistic analysts predicted at the beginning of the year. In this sense, the average of experts believe that this trend will continue next year and that the ounce exceeds $ 1,600 quite easily. Something that should occur if in 2020 you see the markets "begin to take the bearish direction that many analysts expect”, stand out from Jefferies. 3. Gold's ability to protect wealth There is no other asset that can protect wealth as effectively as gold. When the stock market plummets “the gold begins to skyrocket," they say in an RBC report. Even when the bags began to recover from their lows in 2009, the gold metal continued to revalue. Many investors promised at the time not to make the same mistake twice. They didn't want to see their wallets lose half their value or more while gold shot through the clouds. This is the reason why so many investors are returning to pay attention to this asset to protect their portfolios. 4. You still have time to buy gold While the prospects for long-term gold are incredibly optimistic, it is not too late to acquire this metal in your investment portfolio. Many investors can observe their performance this year and think that they have missed a great opportunity, but "that's not true," they say in Jefferies. Gold will only continue to increase "as the economy weakens, the trade war intensifies and the markets begin to turn downwards," they stand out. 5. Gold has tax advantages for retirement Many investors who would like to buy gold may not be familiar with all the ways in which they can invest in this asset. Maybe they see it as something they can only buy at their local coin store, or something they can only invest through an ETF. As established by European regulations, the acquisition of physical investment gold is not taxed with VAT from 2 grams, provided it has a purity greater than 99.5% in the case of ingots and 90% in the case of coins, in case you choose to buy these pieces instead of bullion. This absence of VAT is only applicable to the concept of gold for investment. As for personal income tax, the taxable event will occur when the investor sells bullion. At that time and in the declaration corresponding to that year, you must pay taxes. In addition to taxation, in the face of retirement, gold can protect a portfolio, since if we update its value in 1980, at which time it was around $ 850 an ounce, at the current inflation level, an ounce of this metal should worth about $ 2,200, which is a much higher price than your current price. This reason is sufficient to value gold as an attractive investment in our long-term portfolio.
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