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Friday, May 01, 2009

Gold Investment to Prevent Inflation

Gold investment, many people believe gold is a investment product that can prevent inflation. And indeed, history proves a gold toke by people panic when that happens can be dangerous to the state economy, such as high inflation, financial crisis, or war.

Inflation is an increase in the price of goods and services in general. Inflation can undermine your money. If the assumption of inflation 15 percent / year, the price of goods & services that are now worth US$ 500, will become US$ 1006 or twice the 6, and US$ 1530 or three times in 9 year..

According that, there are three types of inflation:

1. Moderate inflation, the inflation rate only when under the two-digit per year (below 10 percent)

2. Inflation violent, that is, when the rate of inflation is on a two-digit year (10 percent - 99 percent)

3. Hyper inflation, that is, when the rate of inflation is on the three-digit-per-year (100 percent or more)

This post will discuss about what you can do to face inflation. If you are not among decision makers in government, you may not be able to participate in lower levels of inflation. You can do as an individual, which is just how you can take 'advantage' of the occurrence of inflation is. How? I suggest that you invest on instruments that will increase rapidly when the going inflation rate. What is? Gold.

When China was attacked by Japan during the World War, Chinese people panic and they bought gold, so the prices of gold increase extraordinary. In Indonesia, when the rush occurred in the basic supermarkets on 8 January 1998 (morning before the Budget announcement by President Suharto in front of the House of Representatives), the price of gold also jumped directly. In two days, the price of gold increase more or less directly as much as 1.5 times. And the price, although the fluctuation, likely to continue rising at that time - before finally going down again when inflation back under the two digits.

Facts prove, in the case of high inflation, the price of gold will rise higher than inflation. The higher inflation, the higher the gold price increases. Statistics show that when inflation reached 10 percent, then gold will rise 13 percent. When the 20 percent inflation, then gold will rise 30 percent. But when the 100 percent inflation, the gold will increase 200 percent. This is why you should consider investing in the form of gold. This is because gold is as an investment prophylactic inflation. The higher inflation, the better will usually increase the value of gold that you have. However, should note that the price of gold is likely to be constant when the rate of inflation low, even less likely to decrease when the rate of inflation below two digits. So, gold will only be good if there is moderate inflation (two digits), and will be better if there is inflation hyper (three digits).
Gold is available in several options. Some of the most famous is the gold jewelry and gold metal. One that is also popular in Indonesia is the gold coin.

When you invest for the short-term gold, you will usually be difficult if the benefits of gold jewelry. This is because if you come to the store and buy gold jewelry, you have to pay the price of gold plus the maker. Well, a while back when you sell, the stores will not want to pay the costs of making the gold jewelry. He will only pay the gold price only. In fact, the fate of fact, if a store would accept your gold jewelry. Some shops sometimes refuse the sale of gold jewelry from the public. The causes can be manifold. One of them is because they fear the gold jewelry that does not conduct again when sold. So, even if they buy again, they have to melt the gold.

Therefore, investment in the form of gold jewelry more happiness if stored for long-term. Because usually the price of gold you have gone up much compared to when you buy it.

Gold jewelry is available in a variety of rust, of which 18 - 24 carat. For investment, would that if you choose gold jewelry of 24 carat. This is because the possibility of gold jewelry you can be sold back far greater than the gold jewelry is 18 carat. Once again, the investments in the form of gold jewelry will usually result in a profitable long-term, not short term.

Investment gold which I was quite good in the form of gold investment (gold noble metal). Gold is good enough if the investment is made and anyone not deny that gold metal with different gold-jewelry-for easy re-sale. In addition, gold metal not ask for costs such as making gold jewelry. Therefore, if you want to invest in gold, so harmless you consider investment in the form of gold metal

The other is Gold Coins ONH (fee pilgrimage). That is, from the gold coin is expected to be as an alternative investment for those who want to save the cost of worship to prepare for the Hajj.

ONH is actually just marketing tactics only. In fact, despite the name Gold Coins ONH, but this investment is the same with other investment because the price of gold is same. The price is the same as the price of gold that the price of foreign currency (U.S. dollars), and secure against inflation. That is, people who are not even Islam can invest in Gold Coins ONH because this investment is actually the same with the other gold investments. In fact, naming the ONH Gold Coins are actually very profitable for the owner, because gold is better positioning in the marketing.

ONH Gold coins can be purchased and sold again in the branches PT Pegadaian across the country, gold shops, and the processing unit and the noble metal purification PT Aneka Tambang Tbk. Size of the weight of the starting 1, 5, and 10 grams.
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