Investment NEWS

Gold Investment

Published by author on October 28, 2009

Many people believe that gold is a product of investment product that can face the inflation.
Facts prove, if there is high inflation, gold prices will rise higher than inflation. Statistics show that when inflation reached 10 percent, then gold will rise 13 percent. If the inflation reached 20 percent, then gold will rise 30 percent. But when inflation is 100 percent, then your gold will rise 200 percent. This is why you should consider investing in gold.

This is because gold is believed to be investment antidote to inflation. The higher of inflation, the value of your gold will more increase. However, the price of gold will tend to a constant when the low inflation rate, even if it tends to slightly decrease the rate of inflation below two digits. So, gold will be good only when there is inflation moderate (two digits), and would be great if there is hyper inflation (three digits).

Gold is available in several options. Some are the best known is the gold jewelry and gold bullion. One is also gaining popularity is a gold coin.

When you invest in gold for the short term, usually it will be difficult to get a profit if the shape of gold jewelry. This is because if you come to the store and buy gold jewelry, you have to pay the price of gold plus the cost of manufacture. Well, when one day you sell it back, then the store would not want to pay the cost of manufacture of gold jewelry. He will only pay the price of gold alone. In fact, really lucky if the store will accept your gold jewelry. Some shops are sometimes refusing the sale of gold jewelry from the public. One of them is because they fear that the gold jewelry does not sell anymore when sold. So, even if they buy again, they have to melt the gold.

Therefore, investment in gold jewelry better off if stored for long term. Because usually you’re the gold price has gone up a lot than when you bought it.
Gold jewelry is available in a variety of rust, of which 18 to 24 carats. For investment, it would be nice if you choose gold jewelry worth of 24 carat. This is because the possibility of gold jewelry can be sold back to you much more gold than 18 karat jewelry. Once again, the investments in the form of gold jewelry will usually only provide a favorable outcome in the long term, not short term.

Gold was good enough when used as an investment, and whoever does not deny that different gold-jewelry-gold easy to sell again. In addition, gold does not ask for it as well as the cost of gold jewelry. Therefore, if you want to invest gold, then there’s nothing wrong you are considering investing in gold bullion.

Gold coins and gold bullion on the market available in various sizes. For gold coins are available in sizes 1gr, 2gr, 2.5 g, 5gr, and 10gr. While, gold bullion is provided in the size 20gr, 25gr, 50gr and 1kg. The price of gold bullion and gold coins are not fixed, it’s increase or decrease every day.

You can buy gold bullion and buy bullion at jewelry store / shop gold or at Gold Coin Gain website. Anyone can buy gold coins and gold bullion. Another advantage to having gold coins and gold bullion is for an investment. Investment in gold should not be done in the short term (less than 1 year), because the price increases not too fast, but within a period of more than 1 year, the increasing of gold price may be faster than savings and deposit rates.

You should also not put all investment to gold, because you need cash as well. So divide right portion of the savings, deposits and gold. Also do not keep gold at home too much. There will be the risk of loss (theft and damage). The more gold you keep, the higher risk of loss. Keep your gold in large numbers in safe deposit box at a bank. Storage costs also need to be considered, because the more you save gold the more you spend money.

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