Thing you should know on gold investment
Before starting investing business in gold we should know some advantage and disadvantages we will get from gold investment. It's also important to know and decide which form of the gold that we will manage as investing tool. However there is another basic you should know about this business before starting invest on gold. There is 3 thing basic you should remember here, as follow
When we start on gold investment we should know our desire and need in future.
2. Target or set a goal from what we gain from investing on gold.
After you know what is your need and expectation from it, then set how much you will invest to achieve that goal.
3. Knowing the risk from our investment that we will do
Although we know that lossing in gold is not really big, but we also should prepare for it.
After you know the 3 basic above, next step is knowing what is advantage and disadvantage from investing on gold, every investment have a risk of course, but you can minimized that risk from using advantage from your investment tool, here goes the plus and minus from gold
Advantage
1. Anti-Crisis and Anti-Inflation
2. Be physical (tangible goods)
3. Can be mortgaged and pledged.
4. Durable (Stainless)
5. Free taxes and administration fee.
If you want more good reason investing on gold, go here
Disadvantage
1. Not Practical (a physical being, you need bring it)
2. You may need good storage and security (thief problem)
3. Stuck fund (cannot used for rotate another business)
4. There is no cash flow every month
The last step is we choose the gold form that we gonna use as investment tool, there is several form of gold, such as Gold bullion, Gold coin and Gold Jewelry. Each shape have some benefit their own.
Gold Bullion. Referred as flat gold because gold is shaped like flattened rod or brick, has a gold content of 22 or 24 karat, or in percentages are 95 percent and 99 percent. Gold Bullion is the best form of the gold for investment, because the value will be always same whenever we want sell it. These values follow the international standards in force on the resale value.
Gold Coin, is another form of gold bullion coin that have been formed into pure gold. Value and gold content of coins is equal as gold bullion level. Gold coin also good for investment, but sometimes in gold coin appear limited in gold shop.
Gold Jewelry, If you are woman you may interested in this form, although gold jewelry is popular and preferred among girls, but the most gold jewelry is not good if used as gold investment tool. Because, Gold jewelry requires certain manufacturing services could have such a distinctive characteristic. This causing gold jewelry manufactures charge some money to purchaser. So beside we buy gold, we also pay for manufacture cost. And another bad side is if the model s outdated the value will down also.
So that is all the basic thing before investing on gold for beginner, we need to consider a few thing to be successful in this business, especially the 3 basic above, because as we noted that gold investment has its advantage but it also has some shortcomings.
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