Operations with precious metals, if performed correctly, bring high returns. But they have some features, without studying which you can not get the expected profit. In this case, the best option is an unallocated bullion account.
What is an unallocated bullion account?
The traditional way of earning money on precious metals is buying them up. In this case, they buy an ingot of gold, coins, jewelry or shares of a company that works in this field. But there are some disadvantages. When buying an ingot or commemorative coins, you have to pay VAT. Shares and jewelry made of precious metals require deep knowledge to understand how profitable such an acquisition is. It is much easier to open UBA, which eliminates a number of troubles and allows you to get high profits. This option is a standard contribution, only precious metals are used here instead of cash equivalents. Gold and silver are popular. To draw up an unallocated bullion account, you should fill in the necessary documents at a bank branch, and after purchase the operation will be carried out through it. The difference is calculated as a percentage.
When opening a monetary deposit, everything is quite transparent. You can calculate the yield and expect profit. But in the case of UBA it is difficult to predict in advance how much money can be earned. When buying metal, you have to weigh up the pros and cons of the market to understand how much and in what time period its value will increase.
An unallocated bullion account, in addition to gold and silver, takes palladium and platinum. You can follow their course on the Central Bank’s website.
UBA is divided into two types – urgent and on demand. The yield of the former combines the interest on the balance and the difference in the cost of buying and selling.
An unallocated account on demand includes only an increase in the price of metal.
At first glance, it may seem that it is much more profitable to open an urgent UBA, but there are some nuances. If the account is valid for a certain period, for which the value of the metal will not increase or decrease, you will not earn anything or even remain at a loss.
The basis for price formation is the Central Bank quotes. In turn, its data is influenced by the state of the London Metal Exchange. The institution sets the price of an ounce to determine the price per gram, the bank divides the value by 31.1 and then converts the resulting figure into rubles.
The value of precious metals is influenced by their attractiveness in terms of investment and demand in industry.
For example, the demand for palladium is regulated by its use in the manufacture of various products, while gold is more dependent on investment.