Since Donald Trump's election as US president, gold has emerged as one of the most compelling investment opportunities on the market. Private investors interested in adding the precious metal to their portfolios have several distinct options to consider.
The first approach involves purchasing physical gold in the form of coins and bars. This includes options like the "American Eagle" gold coins or gold bars available in various weights. While gold jewelry represents another physical option with aesthetic appeal, buyers should be aware it typically carries a premium above the price of pure gold.
Gold, along with other precious metals, trades in the relatively ancient weight measurement known as ounces. This weight unit effectively defines the global physical gold price benchmark. Investors should note that physical gold purchases involve additional considerations including storage costs and insurance requirements. Within Israel, physical gold purchases incur VAT. These transactions can be conducted through authorized gold dealers, though potential buyers should verify their chosen dealer adheres to international standards.
Exchange-traded funds (ETFs) represent a second, more operationally streamlined investment avenue. The buying and selling process mirrors that of any other security through securities accounts maintained at banks or investment houses. Investors can choose between foreign or Israeli-based ETFs. This approach eliminates physical storage concerns while offering enhanced liquidity and investment flexibility.
A third investment strategy involves purchasing shares in companies engaged in gold mining and trading operations, primarily listed on exchanges outside Israel. This approach offers positive potential during periods when gold prices rise and company performance remains strong. However, investors should recognize that performance depends on company operations and not exclusively on gold price movements. As with ETF investments, these transactions can be executed through standard securities accounts.
Readers should note that the information provided above does not substitute for personalized investment advice tailored to individual client circumstances.
