Learning-investment09.blogspot.com - Gold Depressed On Strengthening
Dollar Ahead of ECB Meeting Gold has always been a hot topic for discussion.
This can happen because gold is not only include metals are much in demand but
also metals that monetary value. But if gold could be used as a good investment
or investment gold is a waste - waste of time and money?
Although gold is now it has not
become the primary currencies, history records that gold has played a very
important role in the economic sector in many countries. Gold is also included
in an investment still strong and have a long period of time. In addition, gold
can be a valuable additional portfolio particularly in markets that are
deteriorating.
Read also Gold Depressed On The strengthening dollar ahead of ECB meeting
Benefits
and Advantages of Gold Investment
1.Likuiditas
Gold has high liquidity. The point
is that gold can be easily converted into cash anytime and anywhere throughout
the world. Of course this can provide convenience for their owners. Plus,
liquidity and universality of gold is also balanced.
2.
Diversification
Diversification is one of the key
long-term investment success. Adding a secure investment and different on your
portfolio is also an essential way to diversify and reduce the overall risk of
an your investment. Gold can give you an
alternative way to diversify investments effectively and useful. It can do
because gold often experience the opposite movement to the movement of the
stock market and currency values.
3.
Stable Value
Gold tends able to retain its value
over the years. Even some economists argue that the price of gold does not
indicate the value of the gold itself. Thus if the price has decreased, the
value of the gold basis has not changed at all. The existence of a clear and
fixed quantity as well as the fact that gold is a commodity, gold has led to a
very stable value when compared to other.
4.
As Hedging against Inflation
The value of gold increases when
there is inflation. As gold is bought with money, any decrease in the value of
the currency, then logically will lead to an increase in the price of gold.
Therefore, during the inflation, gold could provide a more stable investment
than cash.
5.
Can Be Used As Input In Production
Until now, gold is still included in
this type of universal commodity. Plus, the demanders are reliable and can
further stabilize the gold price. This is because gold is also used in the
production process on some kinds of products including jewelry and electronic
goods. In fact, when the demand increases, the gold market could push and force
the price of gold higher.
Read also Recommended Price of Gold, Thursday, March 10, 2016 (By Jul Allens)
It is true that gold can be a great
investment and a promise for a number of reasons that have been outlined above.
But, still wary of the lack of investment gold below before you decide to invest:
1.
Gold Can not Generate Passive Income
Other investments such as stocks and
bonds can provide passive income (passive income) in the form of interest and
dividends. However, in gold investment, the return can only be obtained when
the value of gold is rising and when you decide to sell it.
2.
Gold Require Physical Storage And Insurance
If you choose to buy gold in
physical form, you not only need to do a safety deposit in gold, but you also
need insurance to protect it. If you do not do both of these things, it will
not be able to do anything - anything to replace the gold if there is damage
and stolen.
3.
Increase In Gold Value Along With Currency Deflation
Many economists argue that the value
of the gold only increases when the economy experienced deflation or also at
the time of high inflation. The impact of that is a lot of criticism reveals
that gold does not offer sufficiently high returns compared to other markets.
When is the Right Time to Start
Investing in Gold?
The time is right for investment
gold when inflation is expected to occur and it pushed down the value of the
national currency. The faster and you can detect the start of a decline, the
more space and opportunities for you to be able to get profit (bold).
Indicators instructions eg stock market decline and political chaos could indicate
a deflation will come on the currency of your country. The announcement by the
central bank to print more local currency can also be a sign that that's when
the right time to start investing in gold.
Since gold is one of the investments
remain stable when markets deteriorate, consider if you are feeling bearish or
bullish, use the gold to complete and meet many stock portfolios. The most
important thing to remember is that you need to enter and use the strategic
management in the same portfolio for gold as an investment allocation of your
other purchases.
There are several ways you can do
when investing in gold:
1.
Buying Gold Direct
You can buy gold directly in the
form of bullion or coins. Then you will keep it in physical form, and gold can
also be sold at a later date. You may feel very happy when gold is in your
hands, but you also need to remain cautious with it. The negative aspect of
this is that you have to pay to make gold has insurance and stored properly.
2.
Buying Stocks In A Gold Company
Values for gold stocks will have a
relationship or a strong correlation with the value of the gold itself.
Therefore, you can buy shares in a company that produces gold. Benefits can be
gained as you will earn dividends on your shares them.
3.
Investing in Gold ETF
Gold ETF is an ETF that specializes
securities investment gold. Diversification like this however can also minimize
the risk of your investment. Two of the most popular ETFs trading on the market
was TRACKS Gold Trust and the iShares COMEX Gold Trust. Unfortunately, this is
only available in the United States.
4.
Trading Gold
Similar to forex trading, gold
trading also provides an opportunity for traders to profit from rising and
falling prices short term. Gold can also be traded with accurate and consistent
because gold is very respectful of support / resistance.
You can trade gold fine all day in a
wide daily range is between 300 to 500 pips and the greatest movement occurs
when the overlap between London and New York sessions. To see the characteristics
of trading in gold and gold trading tips please visit this page.
Read also GOLD PRICE MARCH 10: Spot Down 5 Points To Level Distressed US $ 1,257.40 US Equity Markets Increase
Conclusion
Gold can become a profitable
business investment as other types of investments failed. If you often pay
attention to inflation or deflation, it is possible to add gold on your
portfolio is the right step. Highly recommended for those who are interested in
gold investment to understand the specifics type of gold investment and really
consider carefully before investing.
For example, how much money you
spend for storing and insuring gold, if it will invest in the form of physical
gold. You also need to know the news that could potentially make a big
difference when it later leads to the advantage that you will gain.
Given the possibility of large-scale
purchases of gold in an economy that was hard, try not to join an enthusiastic
and engaged with the situation. So you avoid excessive exposure to the types of
certain asset classes, you should always keep your portfolio is well
diversified.
