Investing in Gold: Where to Buy Precious Metals and How to Invest for Profit

One of the key tips for investors is to use a variety of tools to increase their savings. Therefore, in addition to acquiring securities, investments in precious metals, including gold, are also in demand. According to experts, precious metals, including gold, can make up to 15% of an investment portfolio.

Is investing in gold profitable? And how to do it correctly? We will answer these questions in this article.

Is it worth buying investment gold in Kazakhstan?

Investing in precious metals has the following advantages:

• Precious metals are not subject to inflation. Their value will not decrease due to an increase in production volume.
• Gold is less risky than securities. Moreover, many experts call gold a risk-free asset. For example, if a company goes bankrupt, shareholders may not receive their payments on securities. This does not happen with precious metals.

Bullion is characterized by high liquidity. Precious metal can be easily sold on the exchange at a fair price—even in a situation of instability.

How to invest in gold

If you decide to invest in gold, consider different options.

• Bullion

This is an option for investors who are accustomed to working with physical assets. Unlike securities, bullion can be purchased at a bank—you don’t need to search for which companies’ stocks to choose and make profitability forecasts.

All bullion is initially in vacuum packaging, which should not be damaged in any case, otherwise, it will lose value and may even require an examination to establish the authenticity of the bullion. If you keep the bullion at home or in a bank in undamaged packaging, the bullion itself is not subject to wear, as there is no contact with oxygen in this case.

Remember that gold bullion does not generate income in the form of interest; it is not backed by a cash flow like bonds or promissory notes.

How can an individual buy gold? You need to contact a bank branch. For example, Bank CenterCredit offers gold bars of fixed weight in 5, 10, 20, 50, and 100 grams (purity - 999.9).

Note that a legal entity can also purchase a gold bar. In general, the purchase procedure does not differ from the procedure for individuals, the main condition is the presence of a company bank account. This is a unique solution that is only offered on the Kazakhstan market by Bank CenterCredit.

For the safekeeping of gold bars, we recommend using bank safe services. How much does it cost to store gold in a bank? For example, renting a safe deposit box at Bank CenterCredit costs from 300 tenge per day—the client is guaranteed confidentiality, a high level of reliability, and protection from bank bankruptcy.

• Unallocated Metal Account (UMA)

When you open such an account, you can purchase "virtual" gold (calculated in grams). Working with "virtual" assets is convenient because you do not need to think about their storage. Moreover, the metal is accounted for on your account, which has several protection factors. This means you will not need the bank’s safe services. Gold in UMA can be bought in the FX exchanger from Bank CenterCredit. The main advantages are: buying from 1 gram at stock prices, the ability to get a personal rate, or placing a delayed order.

This is an excellent solution for investors:

• Convenient. Investing in precious metals through a mobile application allows you to control investments anytime and anywhere in the world.
• Profitable. Opening a metal account allows you to fill your investment portfolio with various tools. This reduces risks and increases profitability.
• Simple. Opening a metal account in the bcc.kz app takes minimal time, does not involve commissions, and requires no maintenance costs.
  
  
• Coins

Special investment coins are issued for investors. And numismatists compile their collections of commemorative coins, which are minted in small quantities. Unique commemorative coins are characterized by a high price, which means you can get a good profit from their sale. Coins can only be sold and bought at the National Bank of Kazakhstan.

4. Purchasing Gold Mining Stocks
   

This option is considered one of the most profitable but requires the investor to have at least basic knowledge in the field of investment. This tool works simply: if gold prices rise, the value of shares increases, i.e., your assets. Therefore, it is important to choose reliable gold miners who have been working stably for more than one year and have growth prospects.

Among the Kazakh gold miners, the company Altyntau Kokshetau stands out, which is developing the Vasilkovskoye gold ore deposit. Also known are the companies "Polymetal" (Bakyrchik deposit) and "KazakhAltyn" (Aksu gold ore deposit).

You can include shares of global companies in your investment "gold" portfolio—Barrick Gold, Newmont Corporation, or Kirkland Lake Gold.

How much does gold cost?

In 2024, from February to June, the prices of precious metals (gold) in Kazakhstan ranged from 28.6 thousand tenge to 35.9 thousand tenge (per gram). At Bank CenterCredit, you can profitably buy bars of 100 grams; promotions are periodically held that allow you to purchase bars at a discount.

The most striking proof of the benefits of investing in gold is the analysis of the price of this precious metal over the years. Let’s take a small time span of 5 years. You can familiarize yourself with this data in the table:

The presented sample demonstrates that the price of the precious metal is steadily growing. Of course, minor setbacks are not excluded (as, for example, in 2022). However, the market situation quickly stabilizes. This makes investing in gold an attractive strategy for those who are not afraid of long-term planning and aim to achieve substantial profits.

This article has been translated from its original language using neural network-based translation technology.