Some of the Gold Investment Advantages And Disadvantages a public favorite include:
Gold Investment Advantages :
There are several benefits that can be obtained by investing in gold. Anything? This is it
1. Its properties are easily liquidated
It is the first advantage that is quite tempting in investing, because the form and type of other investments have a tendency to be more difficult to disburse or can only be claimed at certain times. Unlike the case with gold investments that provide flexibility for these investment holders to be able to withdraw it into cash in a relatively easy way and a relatively short time and more flexible than other types of investment.
2. Tax Free
In contrast to owning shares in a particular company. The benefits gained from a good investment in a company are not immediately enjoyed by the shareholders of the company. The reason is, this profit is sometimes also followed by the tax or sometimes the form of profit is not in the form of cash but additional shares of the company. Having gold as an investment item is the right choice if you want a tax-free investment.
3. Protecting the Value of Wealth Money
With the tendency of value increased from year to year, then gold is perfect if called the most investment able to protect the value of one’s wealth. Protection of gold investment in a person’s wealth can be reflected in the price that is always stable and tends to increase, so that when resold, holders of gold investments tend to get higher returns.
Another advantage of gold investing is that you do not have to do it in bulk, like buying it in jewelry. What is certain is that this investment has a myriad of other benefits with lucrative profits. So do not be surprised if there are now many gold shops popping up to attract the public to those who live on the middle to lower economic level, namely by selling types of young gold which is quite affordable compared to old gold.
Gold Investment Disadvantages
Some of the other weaknesses or weaknesses that gold investors may experience associated with the decision of gold ownership as an investment are as follows
1. Risk of High Loss
This is the first risk faced by gold investors, especially those who make gold in the form of everyday jewelry used. This risk arises from the occurrence of robberies that may occur especially when the jewelry used is quite a lot or conspicuous.
Investment in gold in the form of bars with a considerable amount is also prone to this risk. So to protect their assets, gold investment holders are usually willing to pay more funds to rent safe deposit boxes which are facilities for a bank to store files and property belonging to customers that are considered to have a high value.
With the perceived benefits that are quite high, this investment is also not free from low risk. The need to consider more about this investment if you are unsure of the surrounding environment that is a threat to your investment.
2. The price is volatile
Although the tendency of gold prices always increases, but the increase does not necessarily happen every day and is not an event that takes a little time. It is said to have a tendency to increase the price of gold because the review was carried out within a few years. Gold also sometimes experiences a decrease in selling prices even though it often increases.
3. It is a Long Term Investment
Gold investment is not a viable alternative for investors who want quick profits. Large fluctuations in gold prices cannot guarantee investors will get big profits in a short time. As mentioned earlier that the tendency of rising gold prices is a long process, meaning that to get a profit from the difference between the purchase price and the high selling price cannot be done in a short time. Fluctuations in gold prices are also much influenced by the national currency exchange rate against foreign currencies.
Another cause is the financial condition of a particular region, such as Indonesia. When people are in good financial condition, other investments that promise higher profits in a shorter period of time such as company stock investments look more attractive and promising. In the end, gold investment began to be abandoned.
There is Gold Investment Advantages And Disadvantages