Tuesday, May 17, 2011

Type of Gold Investment Choice

So far, gold was chosen as one antidote to inflation, because its value is relatively stable from year to year. Facts prove, if there is high inflation, gold prices will rise higher than inflation. Statistics show that, when inflation reached 10 percent, then gold will rise 30 percent. In fact, when inflation rose to 100 percent too, the gold price will rise by 200 percent. This is why investing in gold is considered very profitable.
However, gold prices will indeed tend to be constant when the inflation rate low. But gold is now available in a variety of investment options. Not only in physical form, but also by buying shares of gold mining companies as well as buying gold contracts on futures exchanges. Well, here's the advantages and disadvantages of each type of gold investment.


1. Gold Jewelry

If your investment goals for the short term, usually it will be difficult to benefit from gold jewelry. The reason is, when you buy gold jewelry, you not only pay the price of gold alone, but also must pay the cost of manufacture. Usually, when you sell gold back to the store, they are reluctant to pay the cost of manufacture. So they will only pay the price of gold alone. Therefore, investment in gold in the form of jewelry will be more profitable if the long-term goal, over 10 years. Because the price of gold has increased many fold, so that the selling price is much higher. Also, choose 24-karat gold jewelry, because of the possibility of much greater advantage.

2. Gold Bars

Gold investment is fairly good and safe is an investment in the form of gold bullion (precious metal gold.) Gold bullion will be easier to resell than gold jewelry. The reason is, when buying gold bars, you do not have to pay the cost of manufacture. That means, you will not suffer losses when selling gold bullion. If you want to invest in gold, this one option to consider.


3. Gold Coins

Gold coins is usually called by gold coin ONH (Fees Naik Haji), because this gold coin is expected to become an alternative investment for those who want to have savings to prepare for the pilgrimage costs. These investments are in fact similar to other gold investments, because it has the gold price following the price of foreign currency (U.S. dollar), and secure against inflation. ONH gold coins can be bought and sold on the branches throughout Indonesia PT Pawnshop, gold shops, and the unit of processing and refining of precious metals miner PT Aneka Tambang Tbk. For its size, usually available from the weight of 1 gram, 5 gram and 10 gram. The price of a gram of approximately USD 394,000.


4. Gold Certificate

Gold investment is not always in physical form, can also take the form of gold certificates. This is a piece of paper that proves ownership of the gold stored at the bank in a country. The owner of this certificate is only holding a single sheet of paper which will only be cashed at the bank concerned. That said, this gold certificate is a very profitable investment alternative and safe. Since you do not need to pay gold storage. Unlike gold investment in physical form which requires the cost of storage in safe deposit box.

5. Gold Mining Stocks

Alternatively, buy shares of gold mining companies. If the state of the gold market is being increased, the price of company stock will usually move faster than the price of physical gold. Although profitable, however, should still be careful, because the investment risks remain. It is better you learn the first equity investment, so no trouble following the development of gold mining stocks to you. Gold mining company whose shares are sold in the stock market today, namely PT Aneka Tambang, Tbk.

6. Gold Futures Contracts

With the help of technology, the gold can be traded as a commodity on the trade in futures (futures trading / margin trading). That is, you only need to have proof of ownership administration. Investing in gold on the Jakarta Futures Exchange was impressed flexible, because you could sell gold when the price is expensive and buy when prices are cheap. The advantage gained from the difference between the buying and selling price. To play in the futures market, you simply pay USD 4 million per lot (contract size lots. One lot equals 1,000 grams of gold), by opening an account at one broker. Furthermore, the value per contract (lot) will fluctuate in line with the rise and fall of gold prices in the stock.

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