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The "Gold Bugs" are currently very much in demand.

Nov 5th 2011 at 5:06 AM

This term refers to investors and investment experts in the world of finance, who regard gold as the answer - or at least as the safest harbour for money - to most problems of the modern financial system. The gold price lastly rose to more than 900 dollars per troy ounce (approximately 31.1 grammes). At its all-time low in 1999 it was only worth 252 dollars. This is also linked to the falling exchange rate of the dollar, however, gold even reaches record levels in euros. This tendency could last for some more time. The more insecure the value of paper currencies becomes, the more popular investments in precious metals will become. Moreover, inflation rates all around the world increase steadily. Therefore, apart from gold bars, particularly gold coins come in handy. The so-called bullion coins are especially interesting for investments in this context. They are, for example, characterised by a very high gold content, practicable denominations and a price which is always closely oriented on the current gold rate. However, not only investors are pleased about the gold coins but also collectors are enthusiastic about the noble metal. The more so since the US investment bank Lehman Brothers collapsed and the financial crisis fully broke off. Since that point in time, the run for gold has been comparable with the erstwhile gold fever on Klondike River. Roger Breitkopf, precious metals dealer at Deutsche Bank stated in September: "The turnover has increased tenfold compared to August. Many people think: Who knows what else is to come. If the crisis persists, we will still be able to buy things with gold."

Nowadays, there is a great selection of different bullion coins made of gold and starting with the Maple Leaf from Canada, stretching over the American Eagle from the USA to the Vienna Philharmonic Orchestra from Austria. However, everything began with the South African Krugerrand, which was firstly issued in 1967. In the period following, the Krugerrand maintained its status as most popular and top-selling gold coin. At the moment, the Krugerrand can hardly be obtained due to the financial crisis although the "Rand Refinery" works at full capacity utilisation, i.e. seven days per week. Other coins face similar situations. As 70% of the gold is used for jewellery, the gold price is not tied to the industrial development as closely as other precious metals. Eugen Weinberg, analyst with Commerzbank, commented in September: "The platinum price has halved since July." Gold coins are particularly interesting to investors for another reason: In Germany, gold coins for investment purposes are not subject to value-added tax! This difference indeed makes a great difference if you consider the current value-added tax of 19%. When you think gold as a layman, you generally think of banks in the first place. However, according to written information by Deutsche Bundesbank, the trade in gold coins is not even subject to the German federal financial supervisory agency (BaFin), although gold can very well constitute an investment. The company Securitas Aurum S.L. wants to enter precisely this "market niche". The company was founded by the two Germans Dieter Scheppeit and Dirk H. Oelrich in the Spanish city of Barcelona. Securitas Aurum is an e-commerce company and sells many famous gold coins directly to customers via its website.

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