【summary】
Gold investment and the new NISA have different roles.
New NISA is a system for building assets over the long term using stocks and investment trusts.
Gold investment is an investment that is often used to prepare for inflation and currency instability, and as asset diversification.
| Purpose | Suitable choice |
|---|---|
| Want to increase assets over the long term | New NISA |
| Want to prepare for inflation and currency instability | Gold investment |
| Want to take advantage of dividends and growth | New NISA |
| Want to have a defensive asset | Gold investment |
| Beginners want to save | New NISA investment trust |
Rather than focusing on one or the other, there is also the idea of using the new NISA as the core of asset formation and using gold as a part of your protection.
Role of new NISA
The new NISA is a system in which profits earned from investments are tax-free.
According to the government information online, the new NISA starting in 2024 will allow you to use both the accumulation investment quota and the growth investment quota.
| Features of the new NISA | Contents |
|---|---|
| Tax-free | Investment profits are tax-free |
| Long-term investment | Compatible with savings investment |
| Products | Investment trusts, stocks, etc. |
| Growth potential | Take advantage of stock profit growth |
The new NISA is a system that is suitable for retirement funds and long-term asset formation.
Role of gold investment
Gold does not yield interest or dividends.
On the other hand, the situation may attract attention due to inflation, yen depreciation, geopolitical risks, and currency instability.
| Features of gold investment | Contents |
|---|---|
| Real assets | Value easily recognized worldwide |
| No dividends | No income generated |
| Diversification | Expect price movements different from stocks |
| Yen-denominated price | Affected by exchange rates |
It is easier to think of gold as a defensive or diversifying role rather than as a mainstay for increasing assets.
Comparison table
| Comparison items | New NISA | Gold investment |
|---|---|---|
| Main purpose | Asset formation | Asset protection |
| Sources of income | Stock growth, dividends, distributions | Price increase |
| Tax-free | Tax-free within the NISA limit | Taxable depending on the product |
| Dividend | Depends on the product | None |
| Suitable period | Long term | Long term for diversification purposes |
| Points to note | Loss of principal, product selection | No interest, fees, exchange |
For beginners, it is simpler to accumulate low-cost diversified investment trusts using the new NISA.
It is easier to manage gold if it is kept as a part of your overall assets.
Risk of having too much money
Gold has the impression of protection, but there are other risks if you hold too much.
| Risk | Contents |
|---|---|
| Weak growth potential | Difficult to grow corporate profits |
| No dividends | No regular income |
| Fees | Costs in pure gold reserves or in kind |
| Price movements | Even safe assets fall |
Gold is not an asset that will not go down.
There are price fluctuations.
summary
Gold investment and the new NISA have different purposes.
New NISA is the mainstay of asset formation, and gold investment is suitable for preparing for inflation and currency instability.
For beginners, it is realistic to focus on long-term diversified investment with the new NISA and keep gold as a part of your assets as needed.
Reference
- [Government Public Relations Online "What is NISA? Easy-to-understand explanation"] (https://www.gov-online.go.jp/article/202401/entry-5555.html)
- World Gold Council “Gold Demand Trends”