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It's still as good as gold for investment
For thousands of years, gold has been one of the most reliable and lucrative investments as its price always rises
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For thousands of years, gold has been one of the most reliable and lucrative investments as its price always rises.
If there is one investment product that has always historically been a tried and true method for attaining wealth, it's gold. Its price is considered stable throughout the history of mankind.
Even during the prehistoric era, gold was already valued as a global currency, a commodity and jewelry. Today, this glittering metal stands as a prudent choice amidst sophisticated investment instruments available on the market.
Its high liquidity rate attracts investors to the high-value product. Amidst the fluctuative rate of one currency against another, gold has become the standard measurement of currencies throughout the world.
Despite the recent decrease in gold prices in the market, gold has experienced overall 50-percent positive growth over the past five years, making it still a profitable investment.
But if you want to join in on the action and invest in gold, you need clear information on what you're getting yourself into. Proper knowledge about gold is necessary in order to attain the financial goals you desire.
Investing in gold is both a mid-term and long-term project. The increasing demand for this precious metal results in rising prices, which also means limited gold supplies.
Gold investment has high prospects in the country, thanks to its nature of investment that has throughout history recorded gold as profitable. This has made gold one of the most popular types of investment, said Ibrahim, a commodities expert from the Indonesia Commodities and Derivatives Exchange (BKDI).
And because it is a safe and profitable investment, the value of gold always goes up from year to year. 'It also helps that Indonesia is the biggest purchaser of gold accessories in the Southeast Asian region, according to world gold council statistics,' Ibrahim said, as quoted by Kontan.
Nizar Hilmi, a SoeGee Futures analyst, also pointed out that gold investment in Indonesia is different from that in developed nations. This is because some Indonesians remain unfamiliar with concepts such as financial markets, stocks, commodities and bonds.
'There is much space to grow in Indonesia. This is why gold investment still has bright prospects here,' Nizar said.
Gold investment also has a lot of other added benefits. With gold, your wealth is free from turbulent changes in inflation values.
Gold prices are also stable, and tend to increase. This has correspondingly made gold a low-risk investment.
Gold is also more liquid than many other forms of investment, as it is easier to convert to cash, especially in the event of an emergency. In times of crisis, gold prices usually go higher.
However, one negative side of investing in gold has to do with how gold shops tend to provide little in the way of transparent information, which makes it difficult for consumers to make proper choices and considerations when it comes to investment.
'In addition, a majority of gold owners tend to experience difficulty when selling their gold, as they don't know standards for gold measurement. Gold shops are also lacking in transparency in applying buying and selling standards for gold,' Ibrahim said.
Another problem is that gold in large quantities requires special security considerations. People tend to put their gold in small safe-deposit boxes. Safer methods include renting safety boxes in banks for your gold.
There is also the issue of how gold investment is only truly good if you make long-term investments. 'This is far more profitable compared to short-term gold investment,' he further said.
If you choose to invest in gold, choose gold bars and gold coins. Ibrahim warned against investing in gold accessories and jewelry, as they will experience a depreciation of the cost of manufacture when they are being sold.
'It is important to avoid gold investment in derivatives for people who are only beginners in the gold investment industry.'
State-owned enterprise PT ANTAM knows the value of gold investment. This state-owned entity recently launched a gold investment program called Secure Planning for Managing Gold (BRANKAS).
'BRANKAS provides certainty for investors who want to invest in gold commodities,' ANTAM director Hari Widjajanto said, as quoted by kompas.com.
BRANKAS is a gold bullion depository services program with guaranteed purity levels for gold. The bullion used for investment is also certified by the London Bullion Market Association.
Hari said that the program was launched to strengthen ANTAM's market penetration, especially in the domestic retail sector. This program is also being launched to prepare in case the government imposes a sales ban on mineral ores.
'The public can enjoy BRANKAS services by registering at one of our LM Boutique networks.'
So far, ANTAM has opened 10 LM Gold Boutiques in nine major cities: Jakarta, Bandung, Semarang, Makassar, Surabaya, Palembang, Banjarmasin, Balikpapan and Medan. (JP)
