The price of gold is determined by demand and supply condition. The world's gold supply is limited so low and many investors are switching their investment portfolio from stock investments and start to gold investment. So there is a high demand for the gold. When it is the low supply and high demand, the price of gold will rise. When gold prices rise, gold investment value will rise.
Why gold investing is become a better investment, compare with other investment?
- The value of gold is not affected by the economic crisis
- The value of gold is not affected by inflation
- The value of gold is not affected by government decisions
- Are beyond the influence of the banking system
- The higher inflation, the higher the price rise in gold prices
- Very easy to sell and liquidated into cash
- Accepted by all people around the world
- Gold prices always go up from year to year, the average is 10% - 15% per year
- Gold is money, while money is not GOLD.
How to invest in Gold ?
In fact, there are many ways to invest in gold, such as gold mutual funds, gold-mining company stocks, ETF (Exchange Traded Fund) gold, gold futures, gold bars and jewelry. Gold bars and jewelry (necklaces or bracelets) are commonly used and generally known for investment due to its fairly easy to do.
Now the question is when is the best time to buy gold?
Perhaps this question is often asked by those interested in gold investment. Before answering that question, it's good to start again with a more substantive question: what is your purpose of gold investing? Is it for future saving? Is it to pay your retirement? And how much time do we have to achieve that goal?
After finding answers to the above questions, we are able to answer the rhetorical question: when is the best time to invest in gold?
Gold is a medium to long term investment category. It is suitable to support a new financial plan that we will do in a period of 1-2 years upwards. It is because gold investment will show its strong prospective at least after one year time span.
Thus we should not be too concerned with daily price fluctuations of gold, if we have understood that the gold we buy new we will use in due course; 1-2 years, maybe even 3-5 years to come.
So, when is the best time to gold investing?
Base on above explanation, then we should be able to find an answer that the best time to invest in gold is when we already have a clear financial plan for our gold investment and at that time we already have the money (no matter how small) allocated indeed to gold investment.
If the plan is clear, the money is available, and then we may buy the gold. No matter the price of gold at that day. No need to worry about the price fall because we are not planning to sell the gold the next day, but 1-2 years later. And at that time, we can be sure the gold price is higher than the price when you buy.
Happy investing :)
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