Gold seems to still be the prima donna of the community in fattening their assets. Apart from being liquid, the escalation in value is arguably no less shiny than other investment instruments.
Gold in the form of coins, bars and jewelry, can be stored for years to be resold at a later date. Although it tends to fluctuate, the trend of gold prices has climbed from time to time.
According to Financial Planner Eko Endarto, gold investment has its own advantages, namely a greater increase in value of 1 percent to 2 percent compared to inflation per year. Besides that, gold is also global in nature so it can be accepted anywhere. In addition, it is also more liquid compared to other fixed investment alternatives, such as land.
Therefore, gold is often lined up as a cushion if the investment instruments are generally down, like stocks. Take for example, the case in 2008, where the portfolio of community assets moved to gold after the financial crisis occurred.
“Many in times of crisis, people turn to gold because it’s the safest. Directly, gold prices are high, “he said on Friday (9/15).
In addition to functioning as a precious metal, gold can also be transformed into jewelry that can be used to enhance appearance, especially by Eve. However, is gold still an investment instrument when it has transformed into jewelry?
Eko explained, of course gold jewelry can still be used as an investment in the future. However, the value of investing in jewelry is of course not from the noble metal, but from the aesthetic side and the historical value of the jewelry itself.
“The value of this jewelery lies in its historical side, as it was designed by whom? Who were the users of jewelry before? So, if you want to store jewelry, the point is not investing in gold, but investing in collectibles, “explained Eko.
Moreover, investment in gold jewelry is also considered to reduce the value of gold. Because, jewelry owners also have to bear the cost of making gold jewelry itself. So, even though it can be collected into property, he does not recommend that people use jewelry for investment motives.
“To be sure, for investment don’t use gold jewelry. It’s better for gold bars, because the long-term prospects are quite good, “he explained.
Three-quarter money, financial planner Tejasari Assad also does not encourage the public to choose gold jewelry as an investment portfolio. Because, if later the jewelry is resold, the Cheap Jewelry Gifts value can go down considerably compared to the purchase price if there is no privilege.
“For example, jewelry is only the grandmother’s inheritance, for example, of course it will sell cheaply. Moreover, jewelry stores usually say they need additional costs for the smelting process, etc. When selling, the price may fall,” he added.
For this reason, he advised people to invest in metal gold only. With higher prices than inflation, the risk is also smaller than other instruments such as deposits and stocks.
However, there is still a need to be cautioned about precious metals investment. Because, even though the outlook is sleek, gold investment still has shortcomings. Tejasari said, the first disadvantage, namely the increase in value in line with the risks that are safe.
If it is booming , mutual fund returns can be up to 20 percent to 30 percent. However, if gold is loved again, the yield is stuck at 10 percent.
Not only that, gold investment is considered to be less good as a short-term instrument. Because, although it is fairly liquid, sometimes the selling price of gold can be 10 to 15 percent smaller than the purchase price.
Tejasari suggested, let gold be held for a while before being resold. This is done so that the increase in the value of gold can be greater than the difference between the purchase price and the selling price.
According to Tejasari, most people did not succeed in investing in gold because they were not sensitive to these calculations. “So, it really needs to be calculated, when this gold investment reaches Break Even Point (BEP). So, in my opinion, this gold investment is better as a back up,” he said.
Investing in gold bars is tempting. But, there’s nothing wrong with collecting gold jewelry if the aesthetic and historical value is quite qualified. Whatever the shape, it’s never too late for you to start investing in gold.