Against a backdrop of political and geopolitical turmoil, the financial markets are going through a period of considerable volatility and uncertainty. As a result, many investors are seeking to protect their assets by turning to so-called safe havens. Gold, as a historic safe-haven asset, has demonstrated its ability to perform in times of crisis. Since the beginning of 2024, its price has risen by almost 17%, illustrating its appeal in times of uncertainty.

Why invest in gold?

One of gold's main qualities is its ability to protect against the risk of hyperinflation. Gold stocks change little over time, so the value of the investment is preserved despite massive injections of liquidity by central banks. However, acquiring physical gold is not an easy process for individuals, because of the constraints associated with its storage, insurance and potentially its liquidity, i.e. the constraints associated with resale, which can be significant.

Physical gold or financial investment? 

Why not both? When we think of physical gold, the image of an ingot hidden in a safe or a cellar immediately springs to mind. However, it is now possible to hold physical gold through an ordinary securities account (CTO). In this case, you buy ingots or a certain quantity of gold which are physically held by specialist companies that issue certificates and ownership rights over the gold actually acquired. These securities are then registered in a securities account.

There are many advantages to investing in a securities account:

- Security of investment: The gold is held by a specialised partner, guaranteeing its safety,
- No logistical constraints: investors don't have to worry about storing or insuring their gold,
- Liquidity: Investments are easily resold thanks to their daily quotation,
- Tax advantages: Gold is taxed in the same way as the asset in which it is invested, whether in a securities account or a life insurance policy.

As far as taxation is concerned, gold held in a securities account is subject by default to the Prélèvement Forfaitaire Unique (PFU) of 30% on capital gains, regardless of how long it is held. However, taxpayers can choose to have their capital gains, less a 40% allowance, taxed at the progressive income tax rate, plus 17.2% social security contributions. What's more, as gold does not generate recurring income, it is not taxed until it is sold. Finally, unlike property, gold is not subject to the Impôt sur la Fortune Immobilière (IFI).

What other ways are there of buying gold?

You can also buy one-kilogram ingots, 5- to 500-gram ingots and even gold coins such as 10- or 20-franc napoleons. The partner company is responsible for storing all the items purchased. This is not paper gold, but precious metal held indirectly through title deeds.
It is also possible to invest directly in financial investments such as life insurance policies and securities accounts via ETF or ETC trackers, or even via certificates issued by banks.

Investing in gold via an ordinary securities account is a reassuring and effective way of diversifying and securing your assets. If you want to enjoy the benefits of physical gold without the constraints? Finankap Group's specialist financial advisers are available to help you discover our solutions tailored to your wealth management needs. Contact us today!