Myths about investment gold: the 6 most common errors
Many half-truths and myths surround investment gold and keep people from trying one of the oldest ways to preserve value. Let's look at the six most common errors – and what is really true about them.
Myth 1: Gold is only for the rich
Reality: you can start with a small amount. Investment bars are available from as little as 1 gram, and you can buy gradually. Smaller weights do carry a higher premium per gram (explained in the article Premium on gold), but entering gold is by no means reserved for the wealthy. How to begin is summed up in the guide How to start investing in gold.
Myth 2: Gold returns nothing, it is a „dead" asset
Reality: gold indeed bears no interest or dividend – its purpose is different. It serves as a store of value and protection of purchasing power over time, especially against inflation. Why this works is covered in the article Gold and inflation. It is not a tool for quick profit, but a stable „anchor" of a portfolio.
Myth 3: Investment gold is hard to sell
Reality: gold is liquid and easily tradable worldwide. New, uncirculated products from reputable manufacturers with a certificate sell easily – for example through a dealer's buy-back. The buy-back conditions at GOLDU make reselling simple.
Myth 4: High VAT is paid on investment gold
Reality: investment gold is exempt from VAT under the statutory conditions. Mind the difference, though: investment silver is subject to VAT. The tax framework is therefore an advantage of gold, not a drawback.
Myth 5: Counterfeits are a threat and I won't recognise authenticity anyway
Reality: with new investment gold from a verified seller, the risk is minimal. Products come in original packaging (blister), with a certificate bearing a serial number and a struck fineness mark. Buy new goods with verifiable origin and the risk of counterfeits practically disappears.
Myth 6: Paper gold or ETFs are better
Reality: paper gold (ETFs, certificates) offers fast trading, but you do not hold real metal and you bear counterparty risk. Physical gold, by contrast, is tangible and independent of the financial system. Both forms are compared in the article Physical gold vs. paper gold.
Conclusion
Most myths about gold are based on lack of knowledge, not on facts. Investment gold is accessible, liquid, tax-advantaged and tangible. Browse the offer of investment gold at GOLDU – new, with verified origin and fair buy-back.
Disclaimer
This article is for informational and educational purposes and does not constitute investment or tax advice. Precious metal prices fluctuate, and past performance is no guarantee of future returns. More in the document Risk disclosure.
