GOLD is the basic foundation of assets in a portfolio of long-term deposit or investment. For centuries, especially during times of financial crisis, investors are trying to protect the value of its assets. As a protector of wealth is important, the stability of the gold still remains strong even for investors today.
Investment is made by way of many people to prepare their financial condition in the future. Compared to saving, investing is the best way for the money we have not eroded by inflation, because we know inflation is a 'robber' which reduces the value of our currency from time to time and one solution to deal with inflation is to invest in gold.
Why Investing in Gold?
Why Investing in Gold?
Why Investing in Gold? Gold has played a very large since it was first discovered. The story is so rich in gold and metal complexes such as gold itself. Its history is full of stories of war to fighting over it, love is expressed in gold and gold serves as a status symbol.
Gold is the basic foundation of assets in a portfolio of long-term deposit or investment. For centuries, especially during times of financial crisis, investors are trying to protect the value of its assets. As a protector of wealth is important, the stability of the gold still remains strong even for investors today.
as one of the few financial assets that do not rely on the promise of payment from the issuer, gold offers safe from the risk of default. Gold also offers the best guarantees to investors against extreme movements of the other asset classes.
Most people have the greatest investment in traditional financial assets such as bonds and stocks. By diversifying your portfolio can provide added protection against fluctuations in the value of an asset or group of assets. Risk factors that could affect the price of gold is quite different from the factors that affect other traditional financial assets. History shows, portfolios that contain gold are usually more defensive and more stable than others.
Inflation protection from
Market cycles come and go, keep repeating. However, in the long run, purchasing power will last. The value of gold, in relation to tangible goods and services that can be bought by gold, not just survive very stable but also increased the price for centuries. On the other hand, the purchasing power of many currencies to decline, largely due to rising prices of goods and services. From here the investors often rely heavily on gold to fend off the effects of inflation and currency fluctuations.
Protective Value Currency
Gold is used as a protection from currency fluctuations, particularly the U.S. dollar. If the world's major trading currencies, the U.S. dollar rising, gold prices usually fall. In contrast, the decline in the dollar relative to other major currencies resulted in gold prices. For this reason, gold has consistently proved to be one of the best assets in the protection against dollar weakness.
Gold can be classified as a commodity that is more stable than most other commodities and many equity indices. Seems to apply more gold as currency itself. Assets with a high degree of stability that will help guarantee the overall risk in your portfolio. Gold also helps diversify risk more effectively to protect it from negative events that rarely occur but are less likely to occur as a result of other events, often referred to as "tail risks".
Demand and Supply
Increasing the price of gold has changed the balance of supply and demand. The length of time reminding us that the gold mine gold production is relatively inadequate, even though demand is increasing. Therefore, the rising price of gold since 2001 does not result in a significant increase in the level of gold production. Demand for gold show continuing growth in recent years, partly due to rising income levels in key markets. Factors of supply and demand has been laid a solid foundation for the positive outlook for gold for over a quarter century.
Excess Gold Investment
Excess Gold Investment
Gold investment is now present in many forms and packaging, but you must make sure that investing in physical gold (bullion / coins) have a lot more benefits than investing in gold in other forms.
Here are 6 reasons and advantages that you consider appropriate to prefer to invest in physical gold:
1. Protecting Wealth (Wealth Preservation)
Gold 'preserve' the value of our property. The increase in the value of gold compared to dollars each year is always much higher than inflation. This makes us the value of sustainable wealth, is not consumed by the evils of inflation.
2. Low Risk To Medium (Medium to Low Risk Investment)
Gold is a medium-risk investments tend to be lower with the yield rising high enough value at a certain time period.
3. Tangible assets (Tangible Assets)
Gold bullion / investment coins are 'real', really has value intrinsically, rather than a piece of paper that declared value of the collateral will have hope.
4. Proprietary Rights (Private Property Rights)
Gold bars / coins you have are your private property rights completely. Character of gold bars / coins that make a real independent, not dependent on specific institutions. You can do anything against your gold.
5. Liquid (Liquid Asset)
Gold is the most easily traded assets any place and time, independently of the institution. You can even make gold as collateral for the debt (mortgage), is very rarely any other investment can do so.
6. Tax Exempt (Tax Free)
In Indonesia, gold production was included as a commodity that is not taxed. So if you invest in gold bullion, then you have invested in tax-exempt assets.