ADVANTAGES AND DISADVANTAGES OF GOLD INVESTMENT

The value of gold tends to be stable from year to year and is considered not affected by inflation / zero inflation effect, and very rarely gold prices fell, and gold can also be used for collection and as jewelry. Investing in Gold is good as well as a way to diversify assets. You could invest in stocks, mutual funds, property, bonds or other ORI and investing in gold can be a good alternative, especially in unstable conditions, gold can be as a tool to hedge. Gold prices tend to be stable also because the gold commodity in the world can not grow. One other advantage is also pegged the price of gold in U.S. dollars, so if there is an increase in the value of the U.S. dollar, you can get two immediate benefits of the increase in the dollar and the increase of the price of gold itself. But can the same condition, when the gold price was falling. But for long-term gold prices tend to be stable and rising.

When compared with investing directly in USD currency, gold is more profitable. In Indonesia, money changer relatively fussy. They appreciate the currency cheap long output or folded currency. Not to mention the risk of a fake serial number. As a result, save the USD should always be updated. Unlike gold that can be bought and taken any for some time.

 

Disadvantages of investment in gold is the factor of storage / storage and treatment / handling. Storing gold in large quantities relatively risky and expensive. In addition, if the storage is not good, though wrapped in protective cover, allowing the oxidation and discoloration. Particularly in the form of gold coins to fall, dents, or chipped, it's hard for re-treatment and could reduce the price. In gold investment, you tend to be more careful and pay attention in terms of maintenance and storage. One other drawback is its relatively stable returns and less exciting than stocks or property. Also, it is not advisable to invest in gold only in the short term (1 year or less). So, based on the advantages and disadvantages, in my opinion tend to be more appropriate gold to hedge / hedging of the investment.

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