Profit and Loss of Gold Investment Compared to Other Instruments
So is gold investment.
As a safe haven investment instrument, aka it will continue to be safe, in fact, many are still weighing whether or not they are actually making gold investments compared to other instruments?
Of course, this is still difficult to answer because this investment has its own pluses and minuses.
Therefore, now we will provide info on the profit and loss of gold investment when compared to other instruments!
Gold vs Dollar Investment
Gold Exchange Rates Are The Same Worldwide
If you invest in property or dollars, then the price of your property or dollars will fluctuate depending on the location of the property or dollars where you are.
Unlike gold, the price of your gold will be the same wherever your location is.
The Value of Gold Is Always Rising and Immune To Inflation
Although it has fallen occasionally, the price of gold tends to have more of its bullish chart.
The value of gold also tends to be stable compared to the money you keep in the bank which is prone to devaluation.
How to Invest in Gold is Very Easy
For those of you who are still beginners and don't really understand about investing, gold is the right choice.
You don't need to worry because investing in gold is easier and safer than other investments.
Gold Is Easier to Melt
Unlike other investments, you can disburse gold investments if one day you suddenly need money in a fast time.
You can directly sell the gold you have or mortgage it.
Dollar Not Devaluation
This means, if you currently have 100 USD of money, then the money you will have later remains 100 USD.
Unlike the rupiah, if you save 10 million money then in the next few months or years, the value can change depending on the exchange rate.
Exchange Rate Changes Tend to Strengthen Every Year
The advantage of investing in dollars is that you can benefit from changes in exchange rates that tend to strengthen from year to year.
In fact, you can get even more benefits if the rupiah value is not good.
Currencies Vulnerable to Inflation
Inflation itself is a process of increasing prices in general and continuously (continuously) related to market mechanisms that can be caused by various factors.
These factors include increasing public consumption, excess liquidity in the market that triggers consumption or even speculation, to the extent that it is also due to the incessant distribution of goods.
Inflation, which has an impact on foreign currencies, is indeed very possible because the comparison is the purchasing power of goods in the country.
Money Prone to Shabby or Folding
You also need to be aware of this, because the value of foreign currencies such as the dollar can be affected by the shabby or not of the money.
In addition, the folds on the money can also make the value of the dollar fall.
Therefore, you still need to be careful in storing this currency, make sure it is not shabby and folded.
Gold vs Land Investment
You can find out which one is the best by looking at the advantages and disadvantages of each instrument.
Advantages of Investing in Gold
Not Eroded by Inflation
Although it has fallen occasionally, the price of gold tends to have more of its bullish chart.
The value of gold also tends to be stable compared to the money you keep in the bank which is prone to devaluation.
How to Invest in Gold is Very Easy
For those of you who are still beginners and don't really understand about investing, gold is the right choice.
You don't need to worry because investing in gold is easier and safer than other investments.
Gold Is Easier to Melt
Unlike other investments, you can disburse gold investments if one day you suddenly need money in a fast time.
You can directly sell the gold you have or mortgage it.
Gold Exchange Rates Are The Same Worldwide
If you invest in property or dollars, then the price of your property or dollars will fluctuate depending on the location of the property or dollars where you are.
Unlike gold, the price of your gold will be the same wherever your location is.
Disadvantages of Gold Investment
Slow Price Increase
The increase in gold prices will tend to slow down if economic conditions stabilize then.
In addition, you have no control in determining the price, unlike land investment, the owner can determine the price according to the market of the location.
Long-Term Investment
You can only feel the benefits of investing in gold if left in the long term, at least 2 years more.
Gold Is Vulnerable to Stolen
If you invest in gold in physical form, you need to be extra careful when carrying it or storing it.
The high price makes this one item often targeted by thieves, therefore you have to store the gold in a safe place.
Advantages of Land Investment
Land Prices Are Always Rising
The main key to land investment is to be patient, because you need to wait a few years to increase the selling price of the land. Land prices will always rise, because people's need for land continues to increase but it is not accompanied by the amount of land that exists today.
Land can be a very profitable investment if you own land in a truly strategic area.
No Need for Maintenance
Unlike investing in a house, if you invest in land, you don't need to spend maintenance costs.
Risk Level Almost 0%
Investment experts argue that the risk of land investment is already locked by the price of the land itself. So, if you have to sell your land, the price will not be eroded like a car or motorcycle.
As a Guarantee
home – home guarantee – difference in assets and liquidity
If you need an impromptu fee and want to use your land as collateral, you can do this.
Currently, there are many financial institutions, or even individuals who are willing to accept land as collateral.
Disadvantages of Land Investment
Considerable Capital
For some people, buying land costs a considerable amount of money.
Unlike other instruments that start from IDR 100,000, you can freely invest.
Less Liquid
Another drawback of land investment is that it is less liquid in nature, meaning that if you need fast funds and want to sell them, the land takes quite a long time to find a buyer.
Additional Fees During Transactions
When you decide to buy or sell land, you need to incur additional costs for administrative expenses or tax fees.
In conclusion, based on the advantages and disadvantages as already mentioned above, it can be concluded that all types of investments actually return to your respective needs.
If you don't think finances are a problem for you, then land investment can be a suitable choice for you.
However, if you invest but think that you need fresh funds at any time, then investing in gold can be your choice.
Gold vs Diamond Investment
Liquidity Level
If you ask your parents usually they advise you to hold physical gold as an investment.
The reason why they are more advisable to hold physical gold is not without reason.
Gold is a precious metal that has a high level of liquidity and can be easily disbursed into cash at any time.
Determining the Value of Diamonds and Gold
The main problem when investing in diamonds is that it is difficult to determine their actual value.
Diamonds have different types of cuts, colors, and sizes that make it harder to know their value.
Whereas gold is much easier to determine its value because active trades are carried out every day.
Is Gold a Better Investment?
One of the proofs that gold is among the best investments is its stable value and continues to increase from year to year.
This kind of thing is not obtained when you invest in diamonds.
Add to that the fact that gold can be a hedge asset when the economy is unstable.
But it's not a problem if you want to buy diamonds as jewelry, but don't take it as an investment.
When you are going to buy diamonds, treat the purchase the same as when you bought a car.
Where the purchase is only used as a visual attraction and is used as a consumptive item only.
Consider the Following 2 Things Before Buying Diamonds
Knowing the True Value of these Gemstones
The most important and noteworthy aspect when going to buy diamonds is to make sure that you buy real gems.
Therefore, we strongly recommend that you have a good knowledge of the gem market and have someone who is an expert in this industry.
In this way, you can get the highest quality diamonds and don't have to worry about drastic drops in value.
Understanding the Value of Resale
The next factor is that it is important to understand the resale value of the gemstone.
By paying attention to the two things above, the diamond purchase you make is much more profitable.
Have you determined the investment product to be purchased?
Stock Vs Gold Investment
Asset Form
Gold is an investment asset whose form can be seen and can be touched.
Meanwhile, shares are certificates certifying that you own a portion of the company.
The shares owned by investors become worthless when the company goes bankrupt or goes out of business.
Gold is likely to maintain its value in the future.
As Cash Flow
When investing, you will generate cash flow in the form of dividends distributed by the company.
Not only that, but you will also benefit through capital gains when the stock price becomes higher than before.
On the other hand, investing in gold will not be able to generate an opinion until you sell the gold.
Even worse, it could be that gold ownership makes you have to pay additional costs because you have to rent a place when you are going to store it.
Stocks Include Active Businesses
As previously stated that shares represent ownership in a company, where the company will create products and services and build value for many people.
The success and failure of a company is not only caused by the economic climate, but also the way management manages the company.
Meanwhile, gold is a reactive investment and cannot make efforts to increase its value.
The rise and fall of gold largely depends on the economy and the state of the market as a whole.
Investing is the Art of Diversifying
There is nothing better if you ask between gold and stocks, because both types of investment have their own advantages and disadvantages.
Investing in the stock market may be able to provide the best returns in the long run.
Gold is more of a hedge and an investment to secure wealth.
If you are an aggressive investor, investing in the stock market can be a wise choice to take.
But if you are afraid of investment risks, then start by investing in gold first.
What Are The Advantages of Investing in Gold?
Stock investment savior
If you are an investor in stock instruments, it's a good idea to diversify one of your investment portfolios in gold.
Gold is the right choice of diversification. Because when the stock price is bad, the loss you get will not be large because it is helped by the relatively stable value of gold.
Can Be Used as Collateral
When you are in urgent need of money, but don't want to sell your assets or investment instruments elsewhere, gold can be the solution.
This is because you can apply for a loan by making gold as collateral.
Tax Free
Regarding taxes, there is temporarily no nominal charge for a person's gold holdings. Including gold if you make it as a savings account.
No matter how much and how heavy gold you have, there are no binding rules or laws either. This is certainly different from the cash you deposit in a conventional bank.
Gold Prices Tend to Rise
Although the increase in gold prices is relatively slow, the prospects are very promising, especially during the economic crisis. Gold can be an asset that can give you benefits during a crisis.
What are the Disadvantages of Investing in Gold?
Gold Is Vulnerable to Stolen
If you invest in gold in physical form, you need to be extra careful when carrying it or storing it.
The high price makes this one item often targeted by thieves.
Therefore, you must store the gold well in a safe place.
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