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Gold Investment: Is It Good Investation?

Written By Unknown on Thursday, March 10, 2016 | 12:54:00 PM

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?
gold-investment

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.

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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.

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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.

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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.

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