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Bank SNORAS offers the mediation service while investing in non-cash gold and gold articles (coins and bars) and also storage service of acquired gold articles.
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Significance of gold
The rarity of gold resources as well as the physical properties of gold - malleability, resistance to atmospheric exposure, longevity of artifacts - determine that for many years gold has been used not only in production of ornaments, but it has also served as universally recognized payment and investment means.
The purpose of investing in gold
By investing in gold it is sought to earn from the variation of the gold cost and also to safeguard oneself from economic, political and social shocks or currency devaluation.
Gold price
During a long-term period the tendency of price increase dominates. Since 1971 the gold price in the USA dollars has been increasing on an average by 8.5 per cent a year.
Ways of investing in gold
Investment in gold is made by purchasing gold bullions - coins and bars, and indirectly by purchasing non-cash gold or gold funds that are traded in stock exchanges as well as by using the derivative instruments, such as futures and options.
Gold bullions
The most common and affordable way of investing in gold is purchase of gold bullions - coins and bars. Gold mints annually produce gold bullions from pure gold of high hallmark weighing from 1 gram to 14 kilos. Occasional coins are also released that in time acquire the additional numismatic value. The price of gold bullions depends on the weight, hallmark and market price of gold.
Acquisition of gold bullions
Bank SNORAS offers to its clients to acquire coins, minted in various countries of the world, as well as gold bars. It is possible to acquire gold bullions after concluding an agreement on trading in gold bullions and after submitting the application on bullion acquisition. We offer:
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The coins minted in Austrian gold-mints (Münze Ősterreich AG)
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Name of coin
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Denominations
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Purity (hallmark)
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Weight, grams
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Diameter, mm
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Example
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Vienna Philharmonic (Euros)
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10, 25, 50, 100
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999,9
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from 3,121 to 31,103
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from 16 to 37
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Ducats
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1, 4
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986
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from 3,491 to 13,964
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from 19,75 to 39,5
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Guldens
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4, 8
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900
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from 3,226 to 6,452
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from 19 to 21
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Krones
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10, 20, 100
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900
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from 3,338 to 33,875
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from 19 to 37
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The coins minted in gold-mints of Great Britain (The Royal Mint)
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Britannia (pound sterling of Great Britain)
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10, 25, 50, 100
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917
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from 3,412 to 34,05
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from 16,5 to 32,69
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The coins minted in gold-mints of Switzerland (Argor-Heraeus SA)
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Purity (hallmark)
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Weight, grams
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Example
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999,9
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1, 2, 5, 10, 20, 50, 100, 250, 500, 1000
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If necessary, it is possible to trade with gold coins and bars made in gold-mints and foundries of Canada, Australia, South Africa and other countries.
Storage of the acquired gold bullions
It is possible to store the acquired gold bullions in the vaults of Bank SNORAS by following the extra security requirements. A fixed value fee is collected for the storage.
Sale of gold bullions
It is possible to sell gold bullions to Bank SNORAS by providing the application on bullion sale. Only the bullions, which were bought from the bank and were stored in the vaults of the bank, are bought in.
Non-cash gold
It is an indirect way of investing in gold. The acquired non-cash gold is not physically transferred to the client but is accounted on the client's account. The bank buys the appropriate amount of gold and stores it in a foreign bank or in another institution providing such services. The minimum amount of non-cash gold that can be acquired in Bank SNORAS is 500 ounces troy (around 15 kilos). Larger desirable amounts of non-cash gold to be acquired are multiples of 500 ounces troy - i.e. 1000, 1500 ounces troy etc.
Financial derivatives
After acquisition of gold its value varies depending on the change of the market price of gold. It is possible to insure from the undesirable decrease of gold price by applying the derivatives - gold futures and gold options. For example, after acquiring 500 ounces troy of non-cash gold and selling 5 future contracts (one future contract would be linked to 100 ounces troy of gold), a full insurance is practically made against the gold price fluctuation.
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