There are various investment opportunities currently available based on a long-term and short-term financial goals of someone. One field that can be invested by someone is a rare metal, like gold. However, before investing in gold, it is best to first check the pros and cons of this kind of investment.
One thing is certain for the past three decades, the price of gold has soared. In 1970, one gold troy ounce was $ 37 and today more than a thousand dollars. However, the increase in gold prices has not been stable. Several years high prices and on the others are lower than the previous year. A good example was the price in 1980 and 1985. The price of gold in 1980 was $ 590 for the troy ounce, and then in 1985, prices fell to $ 327. While prices have fluctuated, overall rare metal values have increased. Compared to all the previous years, 2011 has the highest price. Therefore, for many people, this can be the right time to invest in gold, gold, ETF, gold certificates, gold and derivative accounts. However, knowing the pros and cons of gold investment can help you decide whether it’s the right type of investment for you.
Gold investment provides easy liquidity compared to other types of investment vehicles. You can buy or sell gold through a bank or jewelry outlet anytime you want.
While the price of gold fluctuates, this is a rare metal and there are limited supplies. Therefore, the price will not fall. In fact, it will continue to increase. When there is a recession, many people tend to invest in gold and this causes gold prices to increase. If you want to hedge inflation, the investment gold is the best choice.
You can make a neat profit when you sell gold that you have invested as a gold price will continue to increase.
Unfortunately, the biggest loss of gold investment is its speculative nature. Therefore, it is impossible to predict the value of gold in the future. The gold market is very dependent on demand and supply, but also on investor expectations.
Investing in gold does not provide a return or dividend. Also, the investment of the person is frozen when the money is invested in gold.
There may be a storage problem when it comes to Gold Bars and Bullion. This will cause the person to spend additional fees. On the other hand, ETF and gold certificates do not require someone to have a physical storage room.
You must make a decision to invest in gold after weighing the advantages and disadvantages. This will allow you to make decisions based on information that will help you meet your financial goals.