Investment in Physical Gold Bullion
We are living through uncertain economic times. We no longer use real money, today we use Fiat currency which is a paper debt instrument backed by untrustworthy governments, which are run by corrupt politicians.
Investors worldwide are looking for secure and stable assets to include in their investment portfolios in order to secure their wealth into the future.
So this page serves as a utility for new investors, to summarise why it is so important in these times to protect our wealth a stable physical asset like gold, and not through taking large risks in stocks, real estate, crypto or by simply leaving your cash in a bank.
What are the pros and cons of the different investment channels available to you?
What are the advantages of owning physical gold?
Finally, how does the process of purchasing through iGold actually work?
Information about Investments
Investment in Gold
World economics is turbulent and the future is uncertain. Nobody knows how the global economy will behave. Financial collapse of the dollar may plunge the world into economic chaos. Physical gold is a stable financial anchor during these times.
The banking system is usually stable, but, as we know banks can fail and collapse. Banks have now also become digital and vulnerable to cyber-attacks. So there is a need of an alternative investment channel outside the banking system.
Where to invest money?
Each investment channel has advantages and disadvantages. Investment in stocks may yield high returns but expose you to risks. Investment in real estate is considered stable but is not liquid, and cannot serve as cash that could be easily moved. The following table clarifies the pros and cons of the different investment channels.
Investment Channel
Pros
Cons
Real Estate
Potential for high returns, offers stability and low risk of loss
- Long term stability Significant chance of high profits
- High and constant demand Passive income through receiving monthly rent
- Financial leverage Intergenerational transfer
- Risk of loss.
- No option of mobility. Low liquidity.
- Splitting the property is slow and depends on complicated bureaucracy. Property prices in Israel are high and the yield - relatively low.
- High expenses for ongoing management and maintenance. Exposure to tax increases, fluctuations in the exchange rate and in the prime interest rate. Exposure to demographic and geographic changes in the region.
Stocks
Potential for high returns, however high risk of losses.
- Potential for high returns. Liquidity in short-term investments.
- Relatively stable in long-term investments.
- Expertise decreases risk Potential for passive income when the company pays dividends to shareholders. Investing through mutual funds reduces risks.
- Investing through mutual funds reduces risks.
- High risk of loss. An element of 'a bet' in short-term investments. Low liquidity in long-term investments. Investors need knowledge and some expertise to succeed.
- Exposure to fluctuations in the stock market and in the exchange rate. Emotional-based decisions increase the risk May create stress and worries. Independent trading in stocks is free of charge but may increase risk. Trading through investment advisors involves management fees and commissions.
Bonds
Preservation of capital and high stability.
- Relatively solid investment.
- Government bonds and highly-rated corporate bonds have lower risk. Lower risk in long-term investment.
- Passive income from interest payments. Returns go up when the prime interest rate goes up.
- Government bonds usually pay low interest rates.
- Corporate bonds considered to have higher risk.
- Exposure to fluctuations in the exchange rate and in the prime interest rate.
Precious Metals
Preservation of Capital and Stability.
- Solid investment. A solid asset, easy and safe storage.
- Moderate liquidity: easy to move from place to place. High and constant demand all the time and everywhere.
- Security during economic crises. Holding an asset outside the banking system.
- Hedge against inflation. Gold price tends to go up during times of inflation Intergenerational transfer of capital.
- Costs of storage and insurance.
- No passive or yield fixed income. Moderate exposure to deflation and reduction of the prime interest rate.
Buying Physical Gold
It’s impossible to print gold, unlike Fiat currencies such as dollars and shekels.
Therefore, their value decreases steadily over time caused by currency inflation. The amount of gold in the world is limited, and its value constantly increases. During the last 20 years, the value of gold has increased by more than 420 percent! Since 1971, it increased by an average of 10 percent per year, and in the last 10 years in increased by an average of 6 percent per year. The ownership of physical gold and silver means to maintain a tangible asset – you hold gold bars and silver coins in your hands, unlike gold-linked securities which exist only on computer screens. Owning paper gold will give you a pile of documents that will not be protected in a case of financial disaster.
Secured holding of physical gold provides Full immunity from loss, theft and cyber-attacks. Digital bank accounts are vulnerable to hacking, cyber-attacks and identity theft, and might be deleted in an instant. Since the value of precious metal not only persists, but increases year by year, it is a recommended means of diversifying your investments outside the digital dimension of the banks.
Investors can hold physical gold anonymously: registration of the asset’s holding in a bank account is not required. Investors are therefore guaranteed private and secret ownership of an asset which is always accessible and liquid.
Holding physical gold guarantees high liquidity, because physical gold has a constant demand and a uniform price everywhere in the world. Gold can be quickly sold any time and everywhere.
Documents
Real Time Prices
“What is Gold Spot vs Market Price?
The gold “Spot Price” – the price quoted on the exchange for an ounce (31.1 grams) at this price you can buy an “ounce of gold on paper” (ETF) on the commodity exchange in the USA and England.
The gold “Market Price” – the price per ounce (31.1 grams) at which the big silver companies are willing to sell an ounce to private consumers. The price is usually 2-10% above the spot price, since it is a transfer of actual ownership of physical gold.
“What is Silver Spot Price vs Market Price?
The silver “Spot Price” – the price quoted on the exchange for an ounce (31.1 grams) at this price you can buy an “ounce of silver on paper” (ETF) on the commodity exchange in the USA and England.
The silver “Market Price” – the price per ounce (31.1 grams) at which the big silver companies are willing to sell an ounce to private consumers. The price is usually several dollars above the spot price, since it is a transfer of actual ownership of physical silver.
VAT Free Investment Gold
Through iGold, you can purchase physical gold in Israel for investment VAT-free
We are the only company in Israel selling gold and silver VAT free. Eilat is a duty free zone in Israel where you can purchase investment gold without paying taxes. Since our company operates only in Eilat, iGold benefits from this exemption.
We were founded in 2012, aspiring to allow investors in Israel to enjoy financial freedom through investing in physical gold for investment purposes. We import gold from the world’s largest and most reliable companies, to guarantee the highest quality. We also perform advanced tests to verify the weight and purity of each gold and silver products we sell. We also offer our customers fully insured and secured storage.
We are here for you!
Always available for you for any questions or concerns, we are happy to help and guide you.
