Bullion coins as an alternative to classical investments

Investing in gold coins for private investors as long term investments at first glance may seem freezing of money in the long term, we would encourage you to think about this form of investment, and the Invest.lb will tell you where to buy investment coins in the Russian market.

Investment coins after their release in a limited edition fall in the commercial banks, which may be purchased by anyone. But there is also an over-the-counter market in Russia, where you can buy or sell bullion coins not only by individuals but also by legal organizations.

Trading system RTS Board on its platform has opened to investors a new sector — trade investment coins made of precious metals. The interests of credit and non-credit institutions, as well as major buyers and sellers of the asset are gathered in the platform. Earlier the commemorative coins could be bought only at banks or private sellers. Now the trade is significantly simplified. Investment coins in the world are considered as an attractive option for the accumulation and conservation of capital. They are mostly made from gold and silver.

Where to buy bullion coins

In the OTC market RTS Board there are more than 200 types of various commemorative coins, which are separated in accordance with the mints. Among foreign coins here you can buy the canadian Maple Leaf, the Belarusian “Slavyanka”, coins from USA, Australia, South Africa, Austria and Kazakhstan. However, their range is still small, because to import large quantities of coins from abroad is not yet profitable due to high fees, but in the future, the expansion of proposals is planned in a few months. The range will increase to 1,500 units by foreign coins.

What is the deal on buying and selling on RTS Board:

  • purchase takes place directly in the trading system, that is in electronic form;
  • buyer gets the coin from dealer with whom the trade was executed on the trading platform. All bullion coins are in a protective capsule to protect the purchase from damage.

In the future the creation of centralized depository is planned, from which the buyer can pick up his order at any time.

The first major marketplace participants have become major coin dealers (specialized organizations) from Moscow and St. Petersburg, several banks and investment companies. The organizers of the service believe that the simultaneous association of the market participants in one place will help to level out the balance of the price, making the transaction even more profitable. For example, the spread in the sale can reach 30-35% in the banks, while the spreads for those who work with the monetary sector RTS Board — 5-10%.

The advantages of investing in bullion coins:

  • the price consists of two components: the cost of the precious metal, and collectible value of the coin. In other words, even stability in the market of precious metals can still bring the investor an income;
  • loyal to the taxation. Buying bullion is subject to VAT at 18%, sales of 13%. When buying bullion coins there is no VAT, personal income tax may not be paid if the owner can prove that he owned the coin for more than 3 years;
  • the discount when selling is the same as discount on precious metals in case of good preservation;
  • good liquidity, as the coin can be sold as a precious metal, for example, to a bank and a private individual collector.

Bullion coins do not belong to speculative assets –  it will not be possible to earn in short term, but  experienced traders-professionals speculate on the exchange and OTC markets. Because this asset is suitable for those who want to save their money and earn in the long run. Well, where to buy bullion coins, you already know.

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