GOLD

Is investing in gold a good choice?

Yes, investing in gold can be an attractive option.

There are several ways to do this, such as through your bank, via the stock exchange, or by purchasing physical gold.

Gold is often seen as a “safe haven” during times of economic and political uncertainty.
It tends to retain its value and can even increase in price during periods of inflation or geopolitical tension.
However, it is important to inform yourself thoroughly before deciding to invest in gold!

Shares in Gold Mining Companies

A popular indirect way to invest in gold is by purchasing shares of gold mining companies.
The performance of these companies is closely linked to the price of gold.
Some well-known gold mining stocks include AngloGold Ashanti Ltd., Goldcorp Inc., Barrick Gold Corp., Newmont Mining Corp., and Franco-Nevada Corp.
In addition, you can invest in a basket of gold mining companies through an ETF, such as the Market Vectors Gold Miners ETF.

Investing in Gold via ETFs

You can also invest in gold by choosing an index fund or ETF that tracks the price of gold.
Some funds hold physical gold (bullion-backed), while others use financial instruments as collateral (non-bullion-backed).
Well-known examples include SPDR Gold Shares (denominated in US dollars) and ETFS Physical Gold (denominated in euros).
Keep in mind that these funds charge annual management fees.

Active Gold Trading with CFDs

For those who want to actively respond to movements in the gold price, Contracts for Difference (CFDs) are an option.
With CFDs, you can invest in gold using leverage, even with relatively small amounts of capital.
This method is mainly suitable for short-term trading.

NO VAT ON INVESTMENT GOLD (BELGIUM)

Since 1 January 2000, investment gold has been exempt from VAT.
This regulation was established by the European Union and applies throughout the entire eurozone, including Belgium.

⚠️ Important: only investment gold qualifies for this exemption.

It must concern:

  • Gold bars or ingots with a minimum purity of 99.5% (995/1000)

Gold coins are also exempt from VAT, provided they meet all of the following conditions:

  • At least 90% purity

  • Minted after 1800

  • Have been legal tender in their country of origin

  • Normally traded at a price that does not exceed approximately 80% above the intrinsic gold value

❌ Collectible or numismatic gold coins
Coins that do not meet these conditions do not qualify as investment gold and are therefore subject to 21% VAT in Belgium.

CAPITAL GAINS TAX ON GOLD, SILVER AND SHARES (FROM 2026)

📌 New in Belgium since 2026
As of 1 January 2026, a capital gains tax has been introduced on:

  • Shares

  • Investment gold

  • Silver (bars and coins)

This tax applies to the realised capital gain upon sale, calculated as:

Selling price – Purchase price – provable costs

⚠️ Key points to note:

  • Only the profit is taxed, not the total amount

  • Losses cannot be automatically offset (unless legally provided)

  • The tax applies regardless of whether the asset is held physically or via a financial/stock market product

  • The capital gains tax is separate from VAT rules

👉 Conclusion:
Although investment gold remains VAT-free, the capital gain realised upon sale is taxable from 2026 onwards.

YOU DO PAY VAT ON SILVER IN BELGIUM

In Belgium, silver is not considered a financial instrument, but a consumer good.

Therefore:

  • Silver bars: 21% VAT

  • Silver coins: generally 21% VAT, even if they are legal tender

⚠️ In addition, since 2026:

  • Capital gains on silver are taxable upon sale

  • This applies to both physical silver and silver investment products

👉 Silver is therefore taxed twice:

  1. VAT at purchase

  2. Capital gains tax at sale

HOW MUCH GOLD ARE YOU ALLOWED TO OWN IN BELGIUM? (INSURANCE)

There is no legal maximum on how much gold you may own.
What is limited, however, is the insured coverage under your home or theft insurance.

Indicative standard limits:

  • Allianz: €750

  • AXA: €2,200

  • AG Insurance: €2,970.68 (indexed)

  • Belfius: €2,500

  • Ethias: €4,200 (indexed)

  • KBC: €3,000

⚠️ These limits usually apply to all valuables combined (cash, jewellery, precious metals).
➡️ Higher amounts require additional insurance, a safe, or a bank vault.

HOW MUCH GOLD MAY YOU STORE AT HOME?

There is no legal restriction on the amount of gold you may store at home.
You are therefore allowed to keep an unlimited amount of gold in your residence.

⚠️ Take into account:

  • Insurance limits

  • Theft risk

  • Declaration requirements during transport

  • Capital gains tax upon sale from 2026 onwards

BEST COUNTRY TO BUY GOLD?

The cheapest countries to buy gold are often countries:

  • Without VAT on investment gold

  • With low transaction costs

  • With a strong gold infrastructure

Frequently mentioned examples:

  • Dubai

  • Switzerland

  • Singapore

  • Australia

  • India

⚠️ For Belgian residents:

  • Investment gold remains VAT-free upon import

  • Capital gains tax is due upon sale, regardless of where the gold was purchased

  • Silver remains subject to 21% VAT upon import

📌 Customs declaration required:
Liquid assets (cash, gold, precious metals) with a value of €10,000 or more must be declared when entering or leaving the country.

 

How Can You Recognize Real Gold?

Can Gold Discolor?

Gold of any karat always retains its color.
However, due to wear, the acidity (pH) of your skin, and the use of chemical substances such as soap or cleaning products, gold can become duller over time.
A new piece of jewelry is always highly polished, which is why it shines more.

Common tests to identify real gold include:

  • The Acid Test

  • The Magnetic Test

  • The Density Test

  • An Electronic Tester

1 – The Acid Test

The acid test is a widely used method to test the purity of gold.
All you need is white vinegar and a dropper.

Apply a few drops of white vinegar to the surface of the gold and observe whether the color changes.

  • If the drops change the color of the metal, it is not pure gold.

  • If the color remains the same, it is pure gold.

2 – The Magnetic Test

A magnetic test can help identify fake gold.
If the object is magnetic, it is not real gold, as gold is non-magnetic.

3 – Density Test

Gold has a very high density, which can be used to test its purity.

This is done by:

  1. Measuring the weight of the gold

  2. Measuring the volume by submerging it in water

The resulting density should be 19.3 g/cm³, as one cubic centimeter of gold weighs 19.3 grams.

4 – Electronic Tester

An electronic gold tester measures the purity of gold by testing its electrical conductivity.
This is a highly accurate method, but such devices can be expensive to purchase.

Additional Characteristics of Real Gold and How to Identify Them

Look for an Official Hallmark

Check whether you can find an official hallmark with a number on the gold.
This hallmark, also known as a fineness mark or purity mark, indicates how much gold the object contains.

  • On jewelry, the hallmark is often found on the clasp or on the inside of rings

  • On coins and gold bars, the hallmark is usually visible on the surface

In the Netherlands (and commonly used in Belgium), the hallmark is a number from 1 to 999.

Gold Purity Levels:

  • 24 karat gold: 99.99% pure gold (marked 999)

  • 20 karat gold: 83.3% pure gold (marked 833)

  • 18 karat gold: 75% pure gold (marked 750)

  • 14 karat gold: 58.5% pure gold (marked 585)

  • 9 karat gold: 37.5% pure gold (marked 375)

  • 8 karat gold: 33.3% pure gold (marked 333)

Look for Letters Indicating the Gold Is Not Solid

Certain letter combinations indicate that the gold is not solid.
Common markings include GP, GF, and GEP.

These letters indicate that the object is gold-plated or electroplated, meaning a thin layer of gold has been applied to another metal such as copper or silver.
The item therefore contains some gold, but it is not considered real (solid) gold.

Meaning of Common Markings:

  • GP stands for Gold Plated

  • GF stands for Gold Filled, meaning a layer of 14, 18, or 22 karat gold bonded to other metals to increase durability

  • GEP stands for Gold Electroplated

Hallmarks and Origin

Hallmarks can vary depending on where the gold originates.
The Netherlands and Belgium each have two government-appointed assay offices, each with their own office marks and symbols.

Often, a letter indicating the year of hallmarking is also included, such as:

  • K for 2020

  • L for 2021

These markings help verify the authenticity, purity, and origin of the gold.

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