Investment Gold

Investment Gold

Investment gold is one of the most reliable ways to preserve wealth. For centuries, it has been employed to protect capital in times of economic instability, inflation and financial crises. Today investors purchase gold mainly in the form of bars and investment coins with high purity that have been internationally recognised.

Unlike other assets, gold does not directly depend on central bank policy or the state of a particular country’s economy. Precisely because of this, investors use it as a long term shield to their wealth and as a part of a well diversified investment portfolio.

What is investment gold

Investment gold is gold with exceptional purity, which is bought and sold predominantly for investment purposes. Most often it takes the form of gold bars or investment coins, minted and cast by certified mints and refineries. 

Investors prefer this type of gold as it is easily recognisable in the international market, has a transparent price and can be swiftly sold when needed. Compared to other assets such as stocks or real estate, gold offers high liquidity and recognised value.

European legislation clearly defines investment gold as:

• Gold in the form of bars or wafers with a minimum purity of 995/1000;
• Gold coins with a minimum purity of 900/1000, minted after 1800;
• Coins which have been or are currently recognised as legal tender in their country of origin;
• Coins which are normally sold with a surcharge of up to 80% higher than the underlying gold content

Precisely because of this requirement, not every commemorative gold coin falls within the category of investment gold. Rare collectible and numismatic coins, as well as other gold items within the numismatic world often lie beyond the legal definition. Limited editions for special jubilee often go beyond the maximum allowed surcharge and are therefore not classed as investment gold. 

Why investors choose gold

Gold has been among the few assets, which have preserved their value for millenia. From ancient civilisations to modern financial markets, its role as a store of value continues to play a central role.

In today’s world, individual investors and central banks worldwide maintain significant holdings in gold. Central banks add hundreds of tons of gold to their reserve every year – a key sign of the faith placed in this asset.

The reasons are as follows:

• Gold as a hedge against inflation: Inflation reduces fiat money’s purchasing power. Over time, the same amount of fiat money buys a decreasing amount of items and services. Historically, the price of gold often increases during periods of high inflation and depreciation of currencies. Precisely because of this, gold is used as a hedge against inflation.
• Secure asset in economic uncertainty: During financial crises, geopolitical conflicts or banking shocks, investors seek an asset with less risk. Gold is often considered a refuge because it does not carry credit risk and does not depend on the solvency of a given company or country. In times of instability, demand for gold often increases.
• Time enduring store of value: Historically gold has preserved its value throughout different economic cycles. While many currencies lose purchasing power or disappear, gold remains as a universally recognised store of value.
• Diversification of investment portfolio: Gold often has a low correlation with traditional assets such as stocks and bonds. That means its price movement may differ from financial markets. Because of this, many investment strategies employ gold in their investment portfolio as a diversification. Its recommended weight in a portfolio varies between 5% and 15%. 

For context – between 2007 and 2025 prices in the eurozone have increased by 44% according to the harmonised index of consumer prices (HICP), which equates to roughly 30-32% decline in the purchasing power of the euro.  

During the same period, the price of a troy ounce of gold in euros has increased approximately 545%. This is among the factors that boost demand for gold coins and bars in Bulgaria. 

Another important point is that investment gold in the EU is VAT-free, which boosts its attractiveness to investors.

Types of investment gold at Tavex

Investment gold is offered in a few different shapes, which differ in terms of use, liquidity and trade.

Most often investors choose between gold bars and investment gold coins, as both of these forms of gold have their specific advantages. The choice predominantly depends on the budget size, investment strategy and investor preferences.

• Gold bars: Gold bars are among the most common forms of investment gold. They are created in certified refineries and often have a purity of 999.9 (24 carats). Gold bars are offered in various sizes – from modest sizes such as 1 gram, 5 grams and 10 grams, to larger varieties such as 100 grams, 250 grams and 1 kilogram. The main advantage is the lower premium over the market price of gold. This in turn makes them a preferred choice for investors, which want to purchase a larger quantity of gold.
• Gold coins: Investment gold coins are also with a high purity and are internationally traded. They are minted from national mints and often have a legal tender status in the respective country of issue. The most common variety of a gold investment coin is 1 troy ounce (31.1 g). The coins are very popular among investors because of their high liquidity, a design that is easily recognised and verified, and with a great resale ability.
• Historical investment coins: In addition to modern investment gold coins, historical gold coins are widely available and popular for investment. These are coins, minted decades or centuries ago that have a high gold content. Their value is determined by both their precious metal content as well as their historical and collectible value. 

The choice between bars and coins depends on the investment goal.

Investors who seek to accumulate a larger quantity of gold at a smaller premium often prefer gold bars. On the other hand, gold coins offer greater flexibility in a portfolio, as they allow a smaller chunk to be resold whenever needed. Precisely because of these reasons, a great deal of investors choose to own a combination of both and expose their investment portfolio to their respective benefits.

The most popular investment gold products

At Tavex you can buy or sell investment gold coins and bars from a wide range of refineries and mints across the world.

Here are just a few examples:

• Austrian Philharmonic is one of the most popular European investment coins. It is minted by the Austrian mint and is 24 carats gold with a purity of 999.9. The coin is renowned for its design, inspired by the famous Vienna Philharmonic orchestra. While its most common version is the one troy ounce (31.1 g). Due to its wide availability, it is very widely traded both in Europe and across the world markets.
• Canadian maple leaf is minted by the Royal Canadian Mint and is one of the most recognisable investment gold coins in the world. It has a gold purity of 999.9 and some variants are even 999.99. The coin features the emblematic maple leaf – the national symbol of Canada – and is known for its advanced fraud protection.

• Australian kangaroo is an investment gold coin from the Australian Perth Mint. It also features a purity of 999.9 and the most popular version is the one troy ounce. A characteristic feature of the coin is that its design is altered almost every year, which makes it popular not only among investors, but collectors as well.
• Kruggerrand is among the first modern investment gold coins, created in 1967 in South Africa. It contains one troy ounce of gold, but the purity is 916.7 (22 carat) as it also has a small amount of copper added to it for greater durability. Despite this, it remains one of the most widespread and recognisable gold coins on the market.
• American gold eagle is minted by the United States Mint and is the official gold coin of the USA. It also contains one troy ounce of gold with a purity of 916.7. The obverse side features the image of Lady Liberty, while the reverse side shows the American eagle, which makes it among the most emblematic coins in the investment market.
• American buffalo is the first American gold coin that is 24 carat gold (999.9). It is inspired by the famous coin Buffalo Nickel and features the profile of an Indian and an American buffalo. The coin is especially popular among inventors looking for a pure gold coin.
• Britannia is minted by the Royal Mint in the UK. The coin has a purity of 999.9 and contains one troy ounce of gold. It features Britannia – a symbolic figure signifying power and stability in the United Kingdom. Modern versions have improved security features.
• Ducat Franz Joseph is a classic European gold coin linked to the period of the Austro-Hungarian empire. It features emperor Franz Joseph I and has a purity of 900. Although initially only historically minted, today it is also available as a restrike and is popular among the investors due to the high gold content and the traditional design.

These coins are among the most recognisable gold investment products in the world and are renowned for their high trust and liquidity among investors.

How is the price of the investment gold determined

The price of investment gold is mainly determined by international precious metal markets, where demand and supply play a crucial role.

The most important guide is the so-called spot price of gold – this is the current market price of one troy ounce (31.1 g) pure gold, which is priced on the large exchanges such as London and New York. This price is affected by a multitude of factors, including inflation, interest rates, economic uncertainty, currency fluctuations, and even geopolitical events. When investors are looking for secure assets, demand for gold increases and this often leads to a surge in its price.

The final price of physical investment products such as gold bars and investment coins usually includes manufacturing costs and a small premium over the spot price. This premium covers the manufacturing costs, transportation, insurance, and the sale of the product. Its size depends on the product type, manufacturer, weight and current market demand.

To illustrate, smaller bars and popular investment coins often have a slightly higher premium, but that is compensated by their greater flexibility and liquidity. 

How to choose investment gold

When deciding on the right investment gold product, it is important to keep in mind the following things: purity, manufacturer, liquidity and product size.

The most preferred bars and coins are with a purity of 999.9, manufactured by established refineries and mints, which are widely recognised on the international markets.

The choice between bars and coins depends on the investment strategy. Bars normally have a slightly smaller premium and are suitable for larger gold purchases, while investment coins offer better liquidity and flexibility as it allows the sale of a smaller fraction of the whole investment.

It is important that the purchase is made at a reputable precious metals dealer such as Tavex, who can guarantee the source and quality of the gold.

How to store investment gold

Investment gold must be stored in a secure place that is protected against theft and damage. Most often investors choose to store it in either a safe at home or at a bank vault. A safe at home offers quick access to gold, while the bank vault offers a higher level of security and improved protection.

It is important for gold bars and coins to be stored in their original packaging or their protective capsule, so as to avoid any scratches or other types of damage that can affect their resale value.

It is good practice to keep the certificates for authenticity and proof of sale documents, which can ensure an easier resale or valuation in the future.

Why should you buy investment gold from Tavex

Tavex is the market leader of precious metals in Bulgaria and Northeastern Europe.

We offer a wide range of gold bars and coins from renowned refineries and mints across the world. All products have a guaranteed source and a high purity, which ensures international recognition and great liquidity in a future resale.

Tavex clients also benefit from transparent prices, linked to the international gold market, both for purchasing and selling investment gold, all in one place.

You can be sure to receive professional service, current market information and swift deals, which make the whole gold investment process easy and secure. 

How and when to sell investment gold

Investment gold can be sold at any point through dealers of precious metals, banks and specialised traders. Most often the sale is done with a company, which publishes their prices daily, based on the international spot price of gold.

At Tavex you can easily sell your investment gold bars and coins. Our prices are linked to the international gold market. We publish them daily and deals can be made at our offices or with a request in advance. This allows investors to realise a profit or cash in their gold when it is needed.