Choosing to invest in gold is one effective way to protect our wealth. People buy and store wealth in gold to secure their purchasing power, not to get the highest yields. High investment opportunities remain on investment types such as stocks, although the risk is also high for investing in stocks.
Gold as an investment tool aimed at asset value protection is also similar to property. The advantage of gold is easier and faster to cash, and the investment value is relatively smaller. However, both gold and property are equally effective as inflation conquerors. Gold as a hedging tool, of course investing in gold does not promise big returns in the short term like stocks. But the return in gold is relatively stable, it's just less to lose when compared to stocks. Gold tends to be more appropriate for hedging than investment, although it can also serve as both at once.
And for investment in gold, buying gold and reselling it is not recommended for short periods (one year or less) because the profit is not maximal. Do you know how big companies protect their business assets? They have a way of protecting assets with hedging. For example, for example, the company has debts in the form of foreign currency maturing in the next five years. Then the company will sign the contract of purchase of foreign currency at the agreed value, with the date of realization in accordance with the maturity of the debt. There is a fee, but for big companies it does not matter. Better to pay a fee that the amount can be ascertained, rather than assume an unlimited risk. In other words it is better to pay the cost of obtaining an affordable exchange rate, than to risk swelling the debt doubled due to exchange rate fluctuations.
For us, the general public, certainly rather difficult to do hedging like a big company. Because of course more complicated and access is limited, and owned assets are not always associated with the dollar value. Therefore, hedging that can be done to the general public is by buying gold or saving in gold.
In this case gold is used as a protector of value and wealth. And in general, the higher the inflation, usually the better the rise in gold prices. And the more people panic about economic uncertainty, the gold price will soar. On the contrary, the price of gold will tend to be constant if the inflation rate is low. The price of gold even tends to decline slightly if the rate of inflation is below two digits and the dollar exchange rate is stable.
Therefore, gold investment is very suitable to be used as a hedge of wealth. Gold values tend to be stable and considered to have no inflation effect (zero inflation effect). Investment consultants call gold as a save heaven. Buying gold and saving in gold is a safe and stable asset, so called the save heaven.
Gold as an investment tool aimed at asset value protection is also similar to property. The advantage of gold is easier and faster to cash, and the investment value is relatively smaller. However, both gold and property are equally effective as inflation conquerors. Gold as a hedging tool, of course investing in gold does not promise big returns in the short term like stocks. But the return in gold is relatively stable, it's just less to lose when compared to stocks. Gold tends to be more appropriate for hedging than investment, although it can also serve as both at once.
And for investment in gold, buying gold and reselling it is not recommended for short periods (one year or less) because the profit is not maximal. Do you know how big companies protect their business assets? They have a way of protecting assets with hedging. For example, for example, the company has debts in the form of foreign currency maturing in the next five years. Then the company will sign the contract of purchase of foreign currency at the agreed value, with the date of realization in accordance with the maturity of the debt. There is a fee, but for big companies it does not matter. Better to pay a fee that the amount can be ascertained, rather than assume an unlimited risk. In other words it is better to pay the cost of obtaining an affordable exchange rate, than to risk swelling the debt doubled due to exchange rate fluctuations.
For us, the general public, certainly rather difficult to do hedging like a big company. Because of course more complicated and access is limited, and owned assets are not always associated with the dollar value. Therefore, hedging that can be done to the general public is by buying gold or saving in gold.
In this case gold is used as a protector of value and wealth. And in general, the higher the inflation, usually the better the rise in gold prices. And the more people panic about economic uncertainty, the gold price will soar. On the contrary, the price of gold will tend to be constant if the inflation rate is low. The price of gold even tends to decline slightly if the rate of inflation is below two digits and the dollar exchange rate is stable.
Therefore, gold investment is very suitable to be used as a hedge of wealth. Gold values tend to be stable and considered to have no inflation effect (zero inflation effect). Investment consultants call gold as a save heaven. Buying gold and saving in gold is a safe and stable asset, so called the save heaven.
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