Tuesday, January 31, 2012

the Advantages and disadvantages of investing in gold

Current market situation is not very conducive, the crisis has still going on. Debt crisis made many people are turning to buying gold. The following are things that will persuade you to invest in gold.

The advantages of gold as an investment tool:
1. With gold your wealth / saving will be free from inflation.
2. The price of gold will tend to rise, not because the US$ but because of supply / demand of oil and minerals.
3. Gold Investments classified as low-risk investment, as gold prices always go up over the long term.
4. investment in Precious Metals, because when you sell it is free of cost of manufacture such as gold jewelry
5. Investing in gold is more liquid than investments in other forms (easily liquidated into cash when needed).

The disadvantages of investing in gold :
1. Most of the Shops Gold closed slightly to provide information or guidance to consumers openly about price and investment considerations.
2. Most owners of gold have difficulty when selling gold because do not know the calculation standard of gold. While gold store itself is not transparent in applying the standard buy-sell price of gold as the dollar price.
3. Difficult to store. Gold Investment in large quantities such as 1 kg or above, will require special secure place. usually a few people choose to use a small safe to store, but other, use more secure way by hire in a safety box in a bank.
4. Gold is better for long term investment, forget it if you just want a short-term investments.

If we want investment in gold cheaply is to buy gold jewelry or gold bullion in the Pawn at the auction, because auctioned gold is not affected by the cost of making. Another option is to buy gold bullion at the mine company.

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