Guide to investing in gold for beginners

Guide to investing in gold for beginners

Investing - The following is a complete guide to investing in gold for beginners to be able to profit and avoid the risk of loss. The habit of investing should grow in every circle, especially those who are the younger generation or often referred to as the millennial generation. The data shows that the millennial generation has high consumptive habits.

A lot of this consumption is wasted on the side of leisure such as traveling, hanging out, watching movies, and so on. Not many millennials understand that this habit will have a bad impact on their future, especially in terms of financial management.

In addition, the inflation phenomenon also haunts the current financial situation. The current value of money may be low in the future due to rising prices. Seeing these two things, it is appropriate to realize the importance of investment. There are many investment media to choose from. One of them is by investing in gold.What is gold investment and how do you invest in gold? That is what will be discussed in this article. 

Definition of Gold Investment

Gold investment is an activity for investing in precious metals, namely gold.

This commodity has been known for a long time as a symbol of wealth. In addition, it is also known as a tool to protect the value of wealth. A little explanation about the gold itself. Gold is a precious metal that has a dark yellow color. Generally, gold is used in jewelry such as rings, bracelets, necklaces, and other jewelry. That is why gold is often used as a symbol of wealth.

Gold investment or precious metal investment can be done by buying the gold directly physically which is then stored or by using financial products such as gold savings. Of course, these two ways of investing in precious metals have advantages and disadvantages.

Gold investment using gold savings has the advantage of being safer because the gold storage is borne by the party providing the savings product, whereas physical investment is not safer because it is necessary to provide its place for the gold purchased.

The media for the gold investment itself can be done by traditional gold investment, namely by visiting institutions that sell gold or online gold investment.

Reasons for the Importance of Investing in Gold

Why in the end many people decide to invest in gold compared than investing in other media. Of course, there's a reason for all of that.

There are at least 7 advantages of investing in gold that you need to know.

1. Safe

Gold investment is the safest precious metal investment because it will not be eroded by inflation and has a high level of privacy. So the amount of gold you have, only you know it.

2. Promising Profits

Promising profits because the price of gold every year on average always rises. It can be concluded that in general gold has increased every year. Although there are years when gold is down, it shows more of an increase.

3. Gold is more liquid

Gold has a liquid nature. This means that gold is very easy to convert into cash. You just take the gold you have to the gold shop and in a few minutes, the gold has become cash that you can use.

4. Low Risk

Gold investment has a low risk because gold investment is not influenced by economic turmoil or other external factors. This is different from investing in the stock market or other financial sectors, which have a high risk. Not to mention when the invested company does not show good performance.

5. Low Capital

The capital required is relatively low because you can start investing in gold with only 700 thousand for 1 gram of gold. You can even buy gold with a size of 0.1 grams with much lower capital.

6. Easy to move

Gold is easy to move. It can be placed anywhere and given to anyone.

7. Full Ownership

Gold ownership is full and the management of the gold is left to the gold owner. So you don't have to worry about being intervened by other parties. That's the discussion about gold investment. Hopefully, this discussion can add to the scientific treasures related to this precious metal investment.