5 March 2019

Private Pension: Gold and Silver being used as a Pension

In this article we will talk about how gold and silver can be used within a retirement plan. Retirement planning is a complex subject and we won’t be able to cover all aspects in this article. The aim is to provide some sound ideas that you may find beneficial to incorporate into your plan.

Gold and silver are “outside” the system and the majority of advisors simply do not know about precious metals and their value as an investment. Keeping that in mind let’s dive into the subject now.

Gold and Silver can be stored, sold and moved at any given moment in time at a fraction of costs compared to traditional pension plans

The highest form of gold ownership is direct physical ownership, it eliminates all counterparty risk. If you store gold and silver with an audited, allocated and segregated storage provider, then your gold is held in your name and stored away from any other inventory. Storage in this form also takes out any counterparty risk.

For example, if you buy 10 Krugerrand gold coins, then those 10 coins will be stored and sealed under your name. If you pick up your sealbag ten years later then those 10 Krugerrand gold coins will still be in that sealbag - untouched.

The unique properties of Gold in a retirement plan:

  1. Gold does not carry counterparty risk, it cannot go broke..

  2. Gold can be moved freely

  3. Gold is VAT Free

  4. Gold has tax advantages in some EU countries. For example: In the UK Britannias and Sovereigns are exempt of Capital Gains Tax. In Germany after holding any form of investment gold for 12 months Gold is CGT free.

  5. If gold is sold in small portions during a fiscal year the redemption is usually tax friendly. This depends on the overall sum and country - ask a tax professional in your country.

  6. Gold can be sold at any moment in time, it takes only 1 business day for the transfer to arrive in your bank account or same day credit, which is very inexpensive nowadays; if sold from storage. Modern day bullion companies also offer Crypto payments.

  7. Storage costs of gold are lower than the annual and sometimes hidden costs of traditional pension plans.

  8. Gold can be traded (buy and sell) anonymously for cash within the over the counter allowances. The allowances differ from country to country. It is 10,000 Euro in Germany, Baltic states, Benelux, Ireland, Austria and Pound equivalent in the UK.

  9. Physical gold can easily be passed onto the next generation.

  10. Gold and silver investments are easy to manage.

If gold is an important component of an investment portfolio why don’t banking and financial advisors recommend Gold?

This is one of the most asked questions at the CelticGold information talks we’re doing. And the answer is: Because there is no margin in gold. The financial adviser industry gets paid a commission that depends on the product that is sold. The commission varies, but is typically between 4% to 8% of the overall value (= sum of your payments) of the product being sold.

For example: If you pay 500 Euro/month = 6,000 Euro per year and you start at the age of 40 to the age of 67 = 27 Years times 6,000 Euro times 5% = 8,100 Euro commission. In addition to this, an annual fee of 0.15 to 0.25% is also added by the pension plan company to manage the account.

The above math becomes more obvious to the customer actually paying the bill in a zero interest rate environment.

Buy and Sell Spread in physical Gold somewhere between 2 - 4%

Gold carries very little buy and sell spreads. A one ounce pure 999.9 gold bar or coin carries a premium of 2 to 4%. In most cases, when you partner with the right bullion company, you will be able to sell your bullion back to them at 100% of the gold spot price. It only takes a small upward movement in price to recoup the buy spread. Looking at gold in Euros, we understand gold can act as a medium term or long term savings account. Given the fact that the gold owner understands there are price fluctuations.

Setting up a sound Retirement Plan

What we learned from talking to pensioners is that after the financial crisis in 2008 everyone was forced to take an active role in making sound investment decisions for themselves. And making investment decisions is something the majority of individuals are not used to or experienced in.

Read below tips that will help you:

  1. Educate yourself about the monetary system, different markets and investment cycles

  2. Make a retirement plan, latest at the age of 50. This plan should include:

    1. What are my financial needs monthly/annually

    2. How much do I spent monthly

    3. What are the pillars of my pension structure: State pension, real estate, funds, cash, gold/silver, corporate pension

    4. Cross-Check exposure to systemic risks (learn more in this article)


Finding the right Advisors

When you create your retirement plan you will need outside advice to a certain extent. We recommend you first create your plan and then talk to a tax professional. Depending on your overall experience, this is the most cost-efficient method.

In the next step you would include an independent financial advisor. Usually these people are highly trained and give independent advice, although they are still inside the system.

Remember, most financial advisors will not have experience or expertise in the precious metals. As a result, talking to a bullion company will provide you with some added insights and ideas on precious metals allocation and investments.

One Example on how we structure Pensions - in this case Germany


- Married couple, 70 and 65
- Two family home, no liabilities, valued at 350,000 Euro
- One Car (paid)
- No expensive hobbies, like to travel, fish and bike.
- Wife sold her shop for 40,000 Euro, cash in bank
- Both insured through state pensioners health insurance
- Kids are out of the house and part of the workforce


- State pension of him, around 2,000 Euro/monthly
- Rental of holiday flat in house, monthly income 400 Euro
- Side-Income monthly 350 Euro
- State pension income is taxed, minus free allowances, the tax rate is approx. 8%, total net per month =       2,530 Euro net

Assessment of monthly income: Income exceeds costs of travel, housing and living.


- Two-family home valued at 350,000 Euro
- Private Pension plans - none
- Cash: 40,000 Euro, enough to cover house repairs, another car and travel
- Physical Precious Metals: valued at 130,000 Euro, bought in 2009

Assessment of Wealth situation: The cash from the sale price of the shop is available anytime and the taxes have been paid. The precious metals were bought from terminating all private pension plans in 2009. The precious metals have been owned for longer than 12 months and are therefore free of Capital Gains Tax when liquidating them in part or full.

Graphic: The Pillars of Retirement in the above case



This couple did everything right. The monthly income is sufficient enough to cover all costs of living, housing, travel and other hobbies. The house will be passed onto the heirs and once the cash is spent, there’s 130,000 Euros sitting in precious metals that can be sold tax free in any amounts, whenever they need it.

This couple escaped:

- Constant adjustments of estimated payouts and monthly pensions due to negative interest rates
- Rising Rents
- Unnecessary running cost with pension/insurance companies
- They are 100% covered in all systemic risk scenarios. Bank failure, crash on stock/bond/real estate markets and currency failure.

- Lock-in, bail-ins
- Capital Gains Tax, wealth tax, income tax above the monthly income

The couple is not covered in the case of:

- Gold confiscation
- A judgment creditors mortgage which is a governmental mortgage put on peoples home to be paid off to the government.

Further Links with Information:

Historical Valuation on Pensions

Is gold a “buy” now and where are we in the current investment cycle?

How does gold storage work?

What are gold and silver products should I buy?

How does buying gold work?

Secure your Wealth - Understanding Systemic Risks

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Author: celticgold.eu

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