Gold as a safe haven in times of crisis?

by Carlos
3 Minuten
Gold as a safe haven in times of crisis?

Advertisement - Times of crisis lead people to invest their money in tangible assets. This is also understandable, since money has no value in itself and lives only from the trust that its citizens place in the state. Examples such as Venezuela show what happens to the currency when trust disappears.

Until the 1970s, the money supply of many states was still linked to the gold reserves of the respective country. So, there was a real value behind every bill. In 1973, however, this system laid down in the Bretton Woods Agreement was dissolved. Since then, there have been political restrictions that make uncontrolled money supply more difficult, but the system is not nearly as stable as it was during the gold standard.

So, what do you do when you are looking for a safe investment?

The introduction to this article already suggests it: Gold. Many prominent stock market gurus, including Dirk Müller (Mr. DAX), who also gained notoriety in the mainstream press, recommend including gold in a portfolio focused on security.

There are good reasons for this. For example, gold is a precious metal that is rare and its deposits are limited worldwide. These are good qualities for a substitute currency and investment. In the past, it was not for nothing that coin currencies were often minted from gold or silver.

However, I would actually see gold primarily as an investment that optimizes security rather than yield. Although gold is currently at a high price, one should be aware that as such it does not generate a return, only purely through increases in value are profits possible. In comparison: companies generate added value and generate real profits, which they partly distribute to their shareholders as returns. This is not the case with gold. But on the other hand, gold is an important addition to diversify your portfolio. And unlike rare earths, gold is a globally recognized port to secure its values.

Another aspect of gold is that it is considered to be tangible fixed assets and is therefore exempt from the flat tax that normally applies when capital assets are sold. The only requirement is a holding period of at least one year. However, the legislator is attempting to reach into the pockets of investors by amending the current laws. It is planned that from 1 January 2021 onwards gold investments acquired with certificates will also be subject to the flat rate withholding tax. This means that investors will then only have the option of investing in real physical gold, which they will have to store in a cumbersome way at home or in a bank safe deposit box.

You will receive this and several other pieces of information in regularly published market letters, which are conscientiously and up-to-date researched by experts. Especially the market letter "Cashkurs*Gold" by Dirk Müller offers interesting insights into the topic "gold".