You need to know that precious metals are one of the oldest investment instruments in the history of mankind. Since ancient times, precious metals have been a tool for storing proven wealth over long periods of time. Whatever the problems of a nation/country, precious metals: gold still shows its power.
It is assumed that when investors already have stocks, bonds, mutual funds and property, it has diversified, but if precious metals: gold and silver, etc. have not yet entered their investment portfolio, they are not really diversified. A successful investor is an investor who selects precisely the leading investment instrument, and buys it cheaply and earns a profit when the price goes up significantly. Even though precious metals have not been covered by investment radar on most investors, the precious metal has the potential to produce good results in the future. It is a defensive metal that is to protect you from a deteriorating economy. But precious metals can also be offensive to seek high profits through speculation. It is more advisable, investors use precious metals to be more defensive or hedge compared with the intensive.
In recent years, the popularity of precious metals has climbed again marked by rising prices of high precious metals, where the dollar currency is down. Some of these currencies have even reached their lowest point in history. Moreover, the economic deterioration that occurs in a number of countries in the world makes the performance of precious metals such as gold becomes more craze price. Therefore, when the economic situation deteriorates, it is uncertain, how well you diversify your investment into precious metals, especially gold bullion.
You need to know, Money based on the form can be divided into several categories, among others, namely:
• Fiat money. The category of money that includes fiat money has properties where the nominal value is much higher than the money-making material. So the form of money is set by the government of the country as a valid money exchange in business. Banknotes with other nominal, the value of the substance may be the same, but the nominal value is different according to the nominal number listed above.
• Commodity money. This form of money has the characteristic that the nominal value listed therein has the same value as intrinsic, when viewed from the material of the maker. This type of commodity money for example gold and silver, which used to be used as a medium of exchange and transact business, where the value is equal to the value listed on the money. Certainly commodity money with a smaller nominal value has a weight that is also small and commodity money with a large value has a greater weight.
• Liquid money is almost perfect. This form of money is an asset that can be used as a money exchange but not all business people want to accept it because it must be exchanged first. The easiest example is money in the form of a bank check.
It is assumed that when investors already have stocks, bonds, mutual funds and property, it has diversified, but if precious metals: gold and silver, etc. have not yet entered their investment portfolio, they are not really diversified. A successful investor is an investor who selects precisely the leading investment instrument, and buys it cheaply and earns a profit when the price goes up significantly. Even though precious metals have not been covered by investment radar on most investors, the precious metal has the potential to produce good results in the future. It is a defensive metal that is to protect you from a deteriorating economy. But precious metals can also be offensive to seek high profits through speculation. It is more advisable, investors use precious metals to be more defensive or hedge compared with the intensive.
In recent years, the popularity of precious metals has climbed again marked by rising prices of high precious metals, where the dollar currency is down. Some of these currencies have even reached their lowest point in history. Moreover, the economic deterioration that occurs in a number of countries in the world makes the performance of precious metals such as gold becomes more craze price. Therefore, when the economic situation deteriorates, it is uncertain, how well you diversify your investment into precious metals, especially gold bullion.
You need to know, Money based on the form can be divided into several categories, among others, namely:
• Fiat money. The category of money that includes fiat money has properties where the nominal value is much higher than the money-making material. So the form of money is set by the government of the country as a valid money exchange in business. Banknotes with other nominal, the value of the substance may be the same, but the nominal value is different according to the nominal number listed above.
• Commodity money. This form of money has the characteristic that the nominal value listed therein has the same value as intrinsic, when viewed from the material of the maker. This type of commodity money for example gold and silver, which used to be used as a medium of exchange and transact business, where the value is equal to the value listed on the money. Certainly commodity money with a smaller nominal value has a weight that is also small and commodity money with a large value has a greater weight.
• Liquid money is almost perfect. This form of money is an asset that can be used as a money exchange but not all business people want to accept it because it must be exchanged first. The easiest example is money in the form of a bank check.
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