Savings Plan Calculator — Simulate a Precious Metals Savings Plan
6,100.00 €
11,705.73 €
92.49g · ∅ Avg. purchase price: 65.96 €/g · Current: 126.57 €/g
+91.9%
+5,605.73 €
Simulation based on historical LBMA daily prices. Purchase on the first of each month. No transaction costs or spreads included.
What Is a Precious Metals Savings Plan?
A precious metals savings plan works on the same principle as a securities savings plan: you invest a fixed amount regularly — typically monthly — in physical gold, silver, platinum, or palladium. Instead of spending a large sum at once, you build your precious metals holdings step by step and benefit from the so-called dollar-cost averaging effect.
The concept is simple: when prices are high, you automatically buy fewer grams; when prices are low, you get more metal for the same amount. Over longer periods, this results in a favorable average purchase price that is typically below the arithmetic mean of the individual prices.
Typical Savings Rates and Entry Amounts
Most investors start with amounts between 50 and 500 euros per month. Some providers allow you to start with as little as 25 euros per month. The savings rate can be adjusted, paused, or increased at any time — maximum flexibility without long-term commitment.
- ◆ 50–100 €/month: Ideal entry for career starters and savers who want to build a gold position over the long term
- ◆ 100–250 €/month: Solid savings rate, where physical delivery becomes practical after a few years (e.g., 1-ounce coins)
- ◆ 250–500 €/month: For wealthier investors who use precious metals as a permanent portfolio component and want to build substantial holdings quickly
Advantages Over a Lump-Sum Purchase
- ◆ No timing risk: You don't need to find the "perfect" buying moment — regular purchases automatically smooth out price fluctuations
- ◆ Low entry barrier: Starting from as little as 25–50 euros per month — no large capital outlay required
- ◆ Emotional discipline: Automated purchases prevent you from not buying during panic phases or buying too much during euphoric phases
- ◆ Flexibility: Savings rate adjustable, pausable, or cancellable at any time — no long contract terms
Dollar-Cost Averaging in Practice
The dollar-cost averaging effect (also called DCA or cost averaging) describes the phenomenon where regular fixed-amount investments lead to a lower average purchase price than the simple average of individual prices. The reason: at low prices you automatically buy more units, at high prices fewer.
Example: 100 €/month over 12 months
Suppose the gold price fluctuates between 55 and 75 euros per gram over 12 months. You invest exactly 100 euros every month:
In months with a low price (e.g., 55 €/g) you receive 1.82 grams. In expensive months (e.g., 75 €/g) only 1.33 grams. After 12 months you have invested 1,200 euros and accumulated, for example, 18.5 grams of gold — your average purchase price is 64.86 €/g, while the arithmetic average price over the 12 months was 66.50 €/g.
The difference of 1.64 €/g is the dollar-cost averaging advantage: you systematically bought more gold in cheap phases and less in expensive phases.
When Do You Benefit Most?
- ◆ Volatile sideways markets: The effect is strongest when the price fluctuates significantly but ends up at roughly the same level. Here you buy significantly more grams in the troughs.
- ◆ V-shaped recoveries: When the price temporarily crashes and then recovers, you accumulate disproportionately more material at favorable prices during the weak phase.
- ◆ Long-term uptrends with corrections: Even in a rising overall trend, you automatically take advantage of every correction for cheaper follow-up purchases.
Limits of the Effect
The dollar-cost averaging effect is not a return booster but a risk management tool. In a strong, linear uptrend without significant pullbacks, a lump-sum investment at the beginning would have been more profitable — simply because you would have invested the entire sum at the lowest price. Statistically, a lump-sum investment beats a savings plan in about two-thirds of all historical periods in terms of total return.
The savings plan excels where it matters most: in terms of risk. The risk of loss is significantly lower, and the psychological advantage — no fear of the wrong entry point — is priceless for most private investors.
Tip: Use the savings plan calculator above to trace the dollar-cost averaging effect with real historical gold prices. Compare different start dates and savings rates to see how the effect works in different market phases.
Savings Plan Providers Overview
Several specialized dealers and financial service providers offer precious metals savings plans. The differences lie mainly in fees, minimum investment, storage options, and the possibility of physical delivery. Before choosing a provider, you should carefully check the following criteria:
Key Selection Criteria
- ◆ Premium (Spread): The markup over the spot price is the most important fee. Typical spreads are 1.5–5% depending on the provider and metal. Be sure to compare, as these costs add up to significant sums over the years.
- ◆ Storage fees: Usually between 0.3 and 1.5% p.a. of the stored value. Some providers offer storage-free models where you directly acquire physical ownership.
- ◆ Physical delivery: Check whether and from what minimum holding a delivery is possible. Some providers deliver from one ounce, others only from larger quantities. Consider shipping costs and insurance.
- ◆ Minimum amount: The entry threshold varies between 25 and 100 euros per month. Make sure the minimum amount matches your planned savings rate.
- ◆ Insurance: Is the stored precious metal insured against theft, fire, and natural disasters? To what extent? High-security vaults in established jurisdictions are considered standard.
- ◆ Ownership protection: Is your precious metal held as segregated assets (separate from the provider's company assets)? This is crucial in the event of provider insolvency.
Gold vs. Silver in a Savings Plan
Gold and silver differ not only in price, but also in tax treatment, volatility, and practical handling. For savings plan investors, these differences are particularly relevant, as they can add up to significant return differences over the years.
Gold in a Savings Plan
- ◆ VAT-exempt: Investment gold is exempt from value-added tax in many jurisdictions — a significant cost advantage over silver
- ◆ High value per gram: At a gold price of approx. 85 €/g, 5,000 € worth fits into less than 60 grams — extremely compact to store
- ◆ Lower volatility: Typical annual fluctuation of 15–20%, making gold a more stable store of value
- ◆ Higher liquidity: Gold can be sold worldwide at any time at tight spreads
Silver in a Savings Plan
- ◆ VAT applicable: Physical silver is subject to VAT in many jurisdictions (differential taxation may reduce the effective rate). This tax noticeably reduces real returns and makes silver in a savings plan more expensive than gold.
- ◆ Higher volatility: Silver typically fluctuates 25–35% per year — nearly twice as much as gold. This amplifies the dollar-cost averaging effect but also increases the risk of interim losses.
- ◆ Industrial demand: About 50% of silver demand comes from industry (photovoltaics, electronics, medicine). This creates additional catch-up potential but also makes the price more dependent on economic cycles.
- ◆ More weight and volume: 5,000 € in silver weighs over 5 kilograms — storage and transport are more demanding than with gold
Which Metal for Which Investor Type?
Gold Savings Plan
For conservative investors who prioritize wealth preservation and crisis protection.
- ◆ No VAT on investment gold
- ◆ Lower volatility
- ◆ Compact, space-saving storage
Silver Savings Plan
For opportunity-oriented investors with a longer investment horizon.
- ◆ Higher volatility amplifies cost averaging
- ◆ High gold/silver ratio (80–90:1) suggests catch-up potential
- ◆ Additional industrial demand (photovoltaics, electronics)
Tip: A combination of 70–80% gold and 20–30% silver offers a good compromise between stability and return potential for many investors.