Frequently Asked Questions About Buying Investment Gold

Gold coin with two pandas, 1 kg of pure gold, bamboo-patterned background, 10,000 yuan face value, with symbols of China.

Let us go through the most popular questions so that, by understanding them, we can make the best decisions before purchasing investment gold.

Do I need to notify the tax authority (NAV) when I buy gold?

The precious metals dealer has no reporting obligation regarding a customer's gold purchase. There is no reporting threshold either. The gold dealer is, however, obliged to comply with anti-money laundering regulations during the investment gold purchase process, meaning that identification forms associated with clients' cash purchases must be retained and may later be inspected by the authorities.

What are the main anti-money laundering rules that must be observed when buying gold?

Cash gold purchases are subject to anti-money laundering rules similar to those governing cash handling and currency exchange. For wire-transfer payments no identification form needs to be completed, but for cash payments, client details must be recorded in a manner similar to bank identification and stored for 8 years. Most gold dealers store identification forms offline, and the NEHITI (National Tax and Customs Administration supervisory body) conducts spot checks to verify their existence. The identification threshold corresponds to the internationally accepted EUR 1,000 equivalent, which is currently HUF 300,000. At this level, the client need only present identification; however, for purchases exceeding HUF 3.6 million (or if the client's cumulative cash purchases within one year reach HUF 3.6 million), copies of the identification documents must also be made and retained on a permanent basis. In Hungary there is (for now) no upper value limit on cash purchases, meaning that even very large-volume cash transactions can be conducted.

If the client also requests custodial storage or opens a precious metals account, the account can be opened either in person or via remote identification similar to that used for online bank account opening, which is controlled by the dealer's system.

When buying gold by wire transfer or trading through the gold dealer's online system, the movement of funds takes place through bank accounts that are monitored for anti-money laundering purposes by an automated surveillance system operated by the dealer's banking partner. For this reason, the gold dealer is not required to operate a separate anti-money laundering monitoring system for wire-transfer transactions. The banking partner's system does not see the gold purchase/sale transactions and has no access to client data.

Should I buy gold coins or gold wafers?

The production cost of gold wafers is typically somewhat lower than that of gold coins. The difference, however, usually remains within one percent. A major advantage of investment coins is that they are entirely global and recognised all over the world. A dealer may offer a better buyback price for a (scratch-free) coin than for a gold wafer of similar weight. Even in this case, though, the difference is typically no more than 1-2%.

Can I buy gold from stock?

Yes, every reputable gold dealer maintains significant stock. It is not uncommon for investment gold worth several hundred thousand euros to be available for purchase from stock. Buying from stock is possible not only for cash but also by wire transfer, since transfers are now settled in near-real time.

Conclude Befektetesi Zrt. is a reliable gold dealing company in Hungary with more than 15 years of operation.

Physical gold and silver buying and selling in central Budapest, in the Bankcenter building.

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What is the cash limit for purchasing investment gold?

In Hungary (currently) there is no upper limit on cash purchases, which represents an advantage over many other European countries. Naturally, the anti-money laundering regulations applicable to cash must be observed.

Can I pay for gold with a bank card?

Yes, an increasing number of gold dealers now accept card payments on-site via POS terminal or on their website via a virtual POS terminal. For security reasons, there may be an upper limit, and the product may cost slightly more since the card network charges the dealer a commission. Due to the rising cost of cash withdrawals, however, card payments have become competitive.

A precious metals account balance top-up can also be made by bank card, which is very practical because gold can be purchased from it immediately, even around the clock, since this is now the expectation for online gold investment.

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Can I take my purchased gold with me immediately?

Larger dealers maintain significant stock, so in most cases the goods can be collected immediately upon payment. If a large quantity of a particular product is required, it may not be in stock, but the dealer can typically deliver within a few days.

Is it advisable to buy gold from a door-to-door salesperson?

More reputable dealing companies also employ consultants and agents; however, it is essential to verify the company's website, or, in case of doubt, to call the company the agent claims to represent, as cases of misrepresentation using company names do occur. It is particularly suspicious if an agent wishes to accept cash as an advance payment for a gold purchase.

If the price diverges significantly from the customary price of the relevant investment gold product, you have most likely encountered an agent working within an MLM structure. MLM significantly inflates the cost of product distribution, and is therefore not a suitable sales model for products with a slim margin (such as gold).

Can I give gold as a gift?

Gold is a valuable and beautiful gift. Even a 2-gram gold wafer looks excellent in a presentation box, making both wafers and gold coins outstanding gifts for graduation, Christmas, as an honorarium or for a birthday. The invoice can be issued directly in the recipient's name upon request.

Can someone else collect the gold on my behalf?

Yes, this can be arranged with the standard power of attorney.

Can I buy gold from a private individual?

Yes, there is no obstacle to this, but extra care should be taken to verify the quality of the gold, since the risk of encountering fraud is greater when attempting to obtain gold cheaply through, for example, online classified sites or auction platforms.

Bear in mind that gold has an exchange-traded price and all additional costs represent only a few percent of the gold price, meaning there are no miracles. If someone offers gold for sale very cheaply or below the exchange price, this is highly suspicious.

Is there a serial number registry for gold bars?

Manufacturers maintain serial number registries, but there is no requirement to record which bar is sold to which customer in subsequent commercial trading. No serial number registry exists for bars in circulation. For lost or stolen bars, however, there is one: certain bars from a given manufacturer with specific serial numbers are placed on a "watch list". This is understandably not very effective, as a bad-faith holder's first action would be to have the bars melted down and attempt to sell the material as jewellery feedstock.

Can I exchange scrap gold for investment gold?

Yes, this is a common request. In such cases, a reduction of the difference between the scrap gold purchase price and the investment gold selling price can be requested.

In what currency can I pay when buying gold?

Gold can be paid for in practically any convertible currency. In Hungary, most transactions are conducted in euros and forints, but payment in dollars is also common, and occasionally payments are made in Swiss francs.

Exchange rate when buying gold: should I pay in euros, forints or dollars?

Larger gold dealers apply a currency conversion margin of only a few per mille. The exchange rate is often based on the interbank rate, which is better than that of street currency exchange offices. In Hungary, the best rate is available in euros or forints; the two are practically identical because the dealer needs to maintain stock of both. Dollars, pounds and Swiss francs may be exchanged at a rate a few per mille less favourable, as there is no daily turnover and cash stock in these currencies.

There are online gold dealers who apply no markup at all on currency conversion associated with gold and effectively exchange at the mid-rate, which is more favourable than the rates offered by many banks.

Our team is at your disposal if your goal is to buy or sell investment gold.