- November 29, 2018
- Tips for tourists
- Ahi Svetlana
Gold can be called the most insidious and deceptive metal. Over the centuries, crimes have been committed and wars have started because of it. But in its pure form the metal is very fragile. To make gold durable, man learned to add minor elements to it. But they do not devalue jewelry. Every year the price for them increases. The cost of precious metal differs in different countries. Let's find out where the cheapest gold is in the world. In which country can you buy jewelry at a profit?
Kinds
The classification is simple:
- White gold.
- Yellow.
- Red.
Products made from white gold are valued higher. Noble metal is made from expensive impurities. They determine the high cost of jewelry.
The whitish color of the noble metal is not created with the help of platinum, as many believe. White gold is produced by adding impurities of nickel, copper, zinc and silver to a natural element. All of them increase the strength of the precious product. White gold comes in two types: noble and ordinary. In the first type, jewelry makers add expensive metals. The second one includes nickel and copper impurities. Therefore, prices for white gold products may vary significantly.
Yellow color is the natural shade of the noble metal. How much is gold worth? If we compare products made from yellow and white metals, the former will be significantly cheaper. This is because yellow gold is soft. Fine jewelry made from it will be fragile: they can easily be damaged in everyday life.
Red gold is obtained through complex processing of natural metal. This product is durable. It does not fade and does not lose its attractiveness when worn. However, fashion dictates its own rules. Jewelry made from red gold is valued less than its counterparts made from yellow metal. Its value is also affected by the fact that red gold is more difficult to combine with precious stones. And this reduces its price. Red is the cheapest gold.
In which country it is more profitable to buy precious metals, we will consider below.
The cheapest place in the world to buy gold coins
For those who wish to own gold as a store of value or even a medium of exchange, the major types of gold coins such as Eagles, Maple Leafs or Krugerrands are the best choice as they are recognized throughout the world.
You can buy and sell these coins from a dealer anywhere in the world from Vancouver to Vanuatu, but the bullion must be expertly weighed and graded before it can be handled.
For this reason, premiums on gold coins tend to rise greatly during times of crisis when demand for the physical metal is high. In the early days of the 2008 crisis, premiums rose from 4% to more than 10%, even as the price of gold fell sharply at the same time.
Today, as gold effortlessly sets new price records, premiums on gold coins around the world remain relatively high - something we tend to pay close attention to when we're cruising around the world and what I'm about to tell you will knock you off your feet. :
Tim Staermose , one of our Asian partners, was in Hong Kong last week and did his regular rounds of banks in the Central District selling gold coins to retail clients, such as Hang Seng Bank, Bank of China and Wing Lung Bank.
At Hang Seng Bank, 999 fine, one-ounce Canadian maple leaves were selling for Hong Kong dollars just 0.5% above the spot market.
This is simply for nothing, or as we say in Chile, “for the price of an egg” and definitely provides a good opportunity for arbitrage. But, depending on your goals, there are even more interesting opportunities for buying gold coins in Hong Kong.
For example, at Bank of China, Chinese Panda coins were sold at a 4.9% premium to the spot price.
I personally think the Panda is one of the most beautiful gold coins out there and in North America they typically sell for a much higher premium to the spot price than most other coins, often over 20%. In the UK it is even higher.
Many collectors value the Panda simply for its beauty, and perhaps it is important that dealers who have permission from the People's Bank of China to sell pandas in the United States have a monopoly on that market.
However, this situation can be used to your advantage - the difference between the purchase price in Hong Kong and the sale price in North America is about $275 per one ounce coin.
If I had nothing better to do and was looking for adventure, I would find money and fly to Hong Kong, buy coins and sell them in America for a profit to pay for the trip, or even offer a service for gold investors to buy for them cheap coins in Hong Kong.
For those who haven't yet built up a stockpile of gold coins, I would highly recommend going to Hong Kong first - I'm sure the money you'll save will more than pay for your flights and you'll also be giving yourself and your loved ones a wonderful holiday.
Answers to readers' questions:
1. “I searched on Google for gold prices in Hong Kong and noticed that they were different from what you mentioned in your article. Where does the difference come from?
Google is a black hole for neat information. Reconnaissance on the battlefield is always better than the Internet and my partner Tim stood in a Hong Kong bank and talked to employees.
Information on the Internet is very often inaccurate, especially since banks do not trade gold over the Internet or telephone... but only deal with walk-in customers. Therefore, you will find the most accurate prices in the branch.
2. “If I buy gold coins in Hong Kong, will there be restrictions on their export?”
There are no restrictions on the export of gold from Hong Kong, as the precious metals are not a controlled or prohibited item at local customs (unlike rough diamonds).
We've taken gold out of Hong Kong many times in carry-on luggage and no one batted an eyelid.
3. “Are there any restrictions on the import of gold coins into America?”
It depends on where you are flying and what you are buying. If you are flying to North America, neither the Canadian nor the American government considers gold to be a monetary instrument.
Maple leaves and gold eagles are technically considered legal tender in each country, so you'll only have to report your cargo to customs if your coins and other cash total more than $10,000.
Don't forget that customs officers in North America have unlimited power to do what they want even if you haven't broken any laws. Therefore, we recommend that you keep your receipt for purchasing coins in Hong Kong along with proof of the source of your funds - a printout of your bank account will be enough.
If you have any doubts about the rules, ask.
4. “Which countries should you avoid when transporting precious metals?” “
There are such countries among them: Mexico, Thailand, most of Africa, Russia, Uruguay.
I would also avoid Panama, as its customs rules value gold at its market value, not its face value, and those bringing little more than change into the country may be forced to pay taxes.
Samples
In its original form, the noble metal looks completely unattractive. Natural gold has many disadvantages. Among them: susceptibility to corrosion, mechanical damage, dull, inexpressive color. To correct the situation and obtain a “perfect” piece of jewelry, silver and copper are added to gold. To improve its quality, zinc and palladium are used.
Many believe: the higher the purity of gold, the more valuable, durable and better quality it is. But that's not true. The higher the metal standard, the lower its strength. There are 6 main samples of gold.
- 375 is 9 carats. It contains about 37% pure gold. The rest is silver combined with copper. Such products are considered the most durable. But they are also cheaper due to the fact that they quickly lose their attractiveness: they fade over time.
- 500 – 12 carats. It contains 50% pure natural metal. Such products begin to fade after 2 years.
- 585 – 14 carats. This is the gold standard. The jewelry contains about 58% pure gold.
- 750 – 18 carats. 75% consists of natural metal. Products made from it are characterized by moderate strength.
- 958 – 23 carats. Jewelry includes 95% pure gold. They look chic but are soft; Because of this, they quickly scratch and break.
- 999 – 24 carats. Rare high-grade alloy. It is used as inserts in jewelry.
How much does 375 and 585 gold cost? It all depends on the alloy used and the country of manufacture. The price difference in the above samples will be about 30%.
Italian and Turkish gold
An attractive country for buying gold is Türkiye. The alloy products produced by Turkish jewelers are durable, delicate and attractive. The low cost of jewelry creates increased demand among tourists who want to bring souvenirs from their trip.
It is better to buy products in boutiques, ask for a receipt for the purchase and carefully study the appearance, do not hesitate to examine the decoration under a lamp.
Italy is one of the major exporters of precious metals, so when traveling around the country, it is worth thinking about a bargain. Jewelry made by Italian craftsmen is distinguished by its appearance.
Due to the presence of copper and silver in the alloy, the jewelry has a bright yellow tint with beautiful tints without the presence of inserts of other colors. Jewelers from Italy give the material interesting shades by adding other components.
In most cases, the alloys correspond to the samples:
- 24 carats (990-999);
- 18 carats (750);
- 14 carats (585).
Jewelry products by Italian craftsmen are works of art in which small details are worked out with finesse. The material is polished in a special way, characteristic only of this country.
The popularity, worldwide success and recognition of Italy as a trendsetter brought the brands Gucci and Armani to the state, so products here are always made from the highest quality materials.
Where is the cheapest gold
Currently, global gold reserves amount to 3 billion ounces. Where can you buy the cheapest gold in the world? Answer: North America. In this country, the production of precious metal does not require large material and labor costs. And on the African continent, gold will be 2-3 times more expensive. This is explained by the labor-intensive process of its extraction. The noble metal in Africa is found deep underground. To extract 1 small golden ball, you need to dig up about 9 tons of soil.
Africa ranks first in gold production in the world, North America is second, Australia is third, and Asia is fourth.
The most expensive gold
Russian jewelry differs from its European counterparts. Gold items with a red tint remain popular among Russians. They look decent and have good durability. Imported jewelry is made from other alloys. They are more expensive, have a higher standard, but are also fragile. As a rule, Europeans wear them for festive events. But this does not mean that gold is the cheapest in Russia.
We will find out below in which country products made of precious metal can be purchased profitably. In the meantime, let’s find out where the most expensive gold is sold. It is mined in Scotland at the Cononish mine. It is the most valuable type of precious metal in the world. 1 ounce costs $1,400. Scottish gold is highly valuable due to its brightness, rarity, and purest yellow color. It is mined in dangerous conditions.
UAE
Dubai gold is in demand among Russians. And all because the jewelry of this country is high-quality and inexpensive. Gold in the UAE is sold everywhere: in large shopping centers, small shops, and on the market. Many jewelry items are marked 18K, which corresponds to 750 purity.
Dubai gold is considered inexpensive. For example, small white gold stud earrings cost an average of 500 dirhams (about $136). And this is just the starting price. Local sellers like to haggle with them, so you can buy jewelry more profitably.
Türkiye
Many people compare Turkish gold with European gold. It looks gorgeous at a relatively low cost. But there is a nuance here. Firstly, gold is not mined in Turkey. Local jewelers only make amazingly beautiful jewelry from precious metal. Secondly, the alloy of Turkish jewelry is not of high quality. Craftsmen add only copper to natural metal, ignoring silver. Their final product is a beautiful yellow hue, but it is lighter than its Russian and European counterparts. Such gold is susceptible to weathering; it quickly begins to fade, losing its “presentable” appearance.
Where is gold cheaper: in Turkey or OJSC? 1 gram of precious metal in Turkey costs from 7 to 12 dollars. Therefore, gold jewelry will be cheaper there. But their quality is inferior to Dubai jewelry.
Purchasing bars and coins
To purchase gold bars and coins, you must contact the bank. Any individual can purchase the precious metal in this form at any commercial bank that carries out gold purchase and sale transactions. The cost of the bullion will be determined by the price of 1 gram of precious metal. When investing in bullion, you need to understand that gold quotes are determined by the London Stock Exchange, based on this fixing, the Central Bank of the Russian Federation sets the discount price for the precious metal, and commercial banks offer their purchase and sale prices taking into account these indicators.
Gold bars must comply with state standards. GOST differs depending on the type of ingots: one standard applies to measured ingots weighing from 1 to 1000 g, and another applies to standard ingots from 11.3 to 13.3 kg. If the product does not meet the GOST parameters, it is sent back to the refinery for remelting.
Each ingot has a manufacturer's mark and its own number; using these values, you can easily track their path. Ingots from foreign refineries cannot be purchased in the Russian Federation, the reason for this is very high duties. Control over the sale of precious metals by banks means that the answer to the question of where you can buy high-quality gold is clear: in a bank in the form of bars.
But purchasing an ingot of the yellow metal also brings with it a number of problems for a novice investor. When purchasing a product, you will also have to pay VAT, which significantly increases the cost of the bar. If you sell it back to the bank, you will not receive the tax amount back. It is important to organize proper storage of bullion; such bank services will also provide you with additional costs.
Investment coins made from precious metals have a number of their own characteristics. The coins themselves, in addition to the cost of the precious metal, carry historical or collection value. Selling a purchased coin years later can become a serious problem finding a buyer.
The liquidity of bars and coins is low. If necessary, you will not be able to turn your gold savings into cash in the shortest possible time.
The spread, that is, the difference between the buying and selling rates laid down by the bank, can completely “eat up” all the profit accumulated due to the increase in precious metal quotations.
In recent years, many people prefer investing in impersonal metal accounts over bullion. Now opening such an account is included in the list of services of any large bank. Having made a purchase, you will not receive metal in physical form: a metal account will be opened in your name, which will contain a certain amount of gold in grams.
Compulsory medical insurance has a number of advantages. Gold in the account does not require storage costs; there are no additional costs on your part for drawing up a storage agreement with the bank. The liquidity of a metal account is quite high, you can close it and receive the amount of money due to you from the bank. Many banks charge interest on the compulsory medical insurance amount, so using gold in the form of a metal account you can get additional profit that does not depend on the quotes for the precious metal.
Where can you buy gold from a bank cheaply? All commercial banks are guided by discount prices of the Central Bank of the Russian Federation, but purchase and sale prices may differ both between credit institutions themselves and between branches of the same bank. Before investing your savings in gold, it is recommended to study the offers of large reliable banks and choose the best option.
How to buy gold jewelry profitably?
We found out where the cheapest gold is in the world. Let's define the main points that you should pay attention to when buying jewelry. Finally, a few tips:
- Do not fall for the tricks of jewelry stores about sales and huge discounts. This is a marketing ploy, the purpose of which is to attract the largest number of buyers. As a rule, the price including the discount is the old inflated cost of the jewelry.
- You should be careful when choosing gold jewelry. Before purchasing it, you need to compare the price in different stores. As practice shows, the cost of the same product differs at different retail outlets.
- Sellers often divert buyers' attention from inflated prices by providing them with a lifetime warranty on the jewelry. This is also a publicity stunt. And we need to remember this.
- Jewelry stores often sell gold jewelry at prices that are 2-3 times higher than wholesale prices. Therefore, it is appropriate for the buyer to ask for a discount of at least 10-15%. Especially if the decoration is really expensive.
A person strives to save money, so he will always look for high-quality, but at the same time the cheapest gold. It doesn’t matter in which country he buys the jewelry. The main thing is not to succumb to excessively low prices, but to choose a high-quality metal alloy. Gold prices are the most important economic indicators. History proves that the yellow precious metal is eternal. Therefore, gold jewelry will always be in price.
Seasonal prices and precious alloy scrap
Purchasing cheap gold products is possible not only abroad. When making a purchase in our country, it is worth considering several rules that will help you profitably invest in the precious metal.
Where are jewelry cheaper? When choosing products, it is better to contact manufacturers' stores. Retail trade is always associated with a markup on products, so you should visit showrooms located near jewelry factories and factories.
It is recommended to make purchases during the discount season. At the sale of last season's collections, where quality is preferred, it is possible to purchase jewelry at a bargain price.
You can find unique, sometimes antique jewelry at a low price at a pawn shop. Scrap can be purchased from this financial institution that provides loans against jewelry. By taking the purchased material to a jewelry workshop that conducts licensed activities, you can order costume jewelry.
