In 2024, gold has become the juiciest investment for investorswhether professionals in the sector or novices. Indeed, the price of gold has jumped 35% since the start of the year. A precious metal that sells at a high price! According to information from Capital, 1 gram of gold bought for 60 euros on January 1 was resold at the end of October for 83 euros.
Faced with soaring prices, some are interested in another precious metal: silver. Like its neighbor, it shows a similar progression of 37.68% against 37.55%. According to information from Capital, to have an ounce of gold, or a little more than 28 grams, you will have to pay 2,488 euros compared to 29 euros for the same quantity of silver.
Although these two materials increase in value, their problems are not the same. “The advantage of gold is that its value is concentrated in a small volume. On the contrary, silver, if it is purchased in large quantities to generate significant capital gains, will pose a storage problem”, warns Anthony Busco, precious metals expert at AuCoffre.com, in the columns of Capital. “However, these storage or delivery costs are added to the cost of money, a “premium” which therefore weighs on performance,” indicates Capital.
Other important information to take into account, the progression of the price of silver is less regular than that of gold. “Silver is a metal that is used much more than gold in industry (electronics, photovoltaics, chemistry, etc. Editor's note), its price therefore varies greatly depending on global demand”, specifies Anthony Busco, precious metals expert at AuCoffre.com, for Capital.
Beware of VAT on money
While investment gold is not subject to VAT, silver is not exempt from VAT. “We advise our customers not to purchase silver bars for example, as 20% VAT applies”, warns Anthony Busco. To avoid taxes, the founder of Gold Avenue, Alessandro Soldati recommends “giving up holding the money purchased and opting for storage in a free port, as we propose in Switzerland”, he indicates.
Indeed, in Switzerland, no VAT is applied as long as the money is stored in the territory.
Gold likely to rise in 2025
By next year, the price of gold is likely to increase. While it is currently around 2,500 euros, “it is not impossible that an ounce of gold (around 38 grams, Editor's note) will reach 3,000 euros in the coming months”, specifies Alessandro Soldati.
Indeed, gold can increase in value depending on the cycles of key rate cuts by central banks with inflation, which goes directly impact the drop in returns on their savings. And “when safe investments yield less, investors reorient themselves towards other assets which seem to them to be just as safe and profitable, such as gold”, indicates Alessandro Soldati.
