Advantages and Disadvantages of Investing Gold


During the last ten years, investing gold is becoming the trend. It is because not the value of its investments that is "free" of inflation. However, it does not mean investing in gold is always secure. Here are the advantages and disadvantages of investing in gold.

The advantages of Investing in gold

1. Anti crisis and inflation
In conditions of inflation, the price of gold will be soaring. If the price of goods rises, the price of gold is also rising. And if the condition of the dollar is being weakened, the price of gold could still rise.

2. Physical Shape
For some people the less feel comfortable investing in the form of paper assets (shares, mutual funds), investment is safer. Additionally, gold can also be formed into jewelry making it more attractive and functional.

3. Can Pawned and made a warranty
Pawn gold very easy compared to pawn goods or other objects.

The disadvantages of Gold


1. No practical
For most people, investing in gold is physically intimidating. If you want to do transactions with gold, you have to carry around a physical, could not by electronic means (such as on a banking transaction or the capital markets).

2. Storage and security
Up to now there has been no gold in the banking system, as well as a gold-based ETFS. So, if you want to do transactions, still physically. This means you have to set up its own security and storage media. Safe maybe could be a choice, or a safe deposit box at the bank.

3. The fund is jammed
If you invest with just keep it, it's just the same as save in funds bogged down. Indeed the gold price could go up, but if gold only silenced only equals are not productive. Unlike deposits or shares his money can continue to spin in the corporate world.

4. No cash flow
There is no monthly gain in gold, unlike investing deposits and shares.

The reserves crisis and inflation
By looking at the advantages and disadvantages of the above, the Independent Financial Planner from Wealth Optimizer of Zelts Consulting Gozali, Ahmad said, investing in gold is only suitable for keeping the value of the assets in the future. Or in other words, just so the reserve is facing a crisis and inflation, where the amount is enough for 5-10 percent of total your assets.

Preparation before investing in gold
1. Bu jewelry that increases its value, such as gold, diamonds, and other precious stones.
2. Ensure that the jewelry is easy to resale our epoch requires cash. So, we need to know where and who is willing to buy jewelry that we belong.
3. Review the purchase documentation, such as certificates, receipts, and so on.
4. Prepare a secure vault for storage at home, and place it in a secure location and hidden.

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