Gold seems to be a magnet in itself in the investment world because it is never empty of devotees every year. Its stable price tends to rise, making gold a promising long-term investment option.
Usually people invest gold in the form of gold bars or jewelry. The two types of gold certainly have different characteristics and advantages from one another. Then as an investment, which one is better? Check out the explanation below.
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Important Points In Investing Gold
There are several important points that must be considered before determining the type of gold to be used as an investment, namely:
1. Investment objectives
At the beginning you must have a clear goal before choosing the type of gold investment. So that the efforts made are not in vain and can increase your income one day. If you have a long-term investment goal, gold bullion will be more profitable.
2. Gold Prices in the Market
When deciding to invest in gold, you should first look at the selling price of gold on the market. If the price of gold is going up and down and tends to be unstable, you should first undo the intention to buy gold. Never buy gold to invest when the price is soaring because it can cause losses.
3. Choose a Trusted Gold Shop
When buying gold, be sure to choose a trusted gold shop. Do not let you buy gold with levels that do not match the price offered. A trusted gold shop definitely sells quality gold products.
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4. Gold Products with SNI Label
A trusted gold shop definitely sells gold products that already have SNI (Indonesian National Standard). In addition, choose a gold shop that already has a good reputation in selling gold products.
Comparison of Investment in Gold Bars and Jewelry
Many people think that investing in gold bullion is more profitable. However, if you are a person who likes jewelry, then investing in gold in the form of jewelry can also be done.
1. Investment in Gold Jewelry
As an investment, gold used as jewelry to support appearance has a resale value at a fairly stable price. This selling price is influenced by the market price of gold, the exact grade according to SNI (Indonesian National Standard), the model and design factors of jewelry and the production cost of processing gold into jewelry. If you intend to invest in gold in the form of jewelry, you must take into account this production cost. Sometimes, when buying gold jewelry, the price we pay includes the production costs of processing gold into jewelry. However, when we want to sell the gold jewelry back to the same shop, usually the shop will only take into account the current market price of gold. So, you must be prepared to reduce production costs on the price of gold jewelry when you want to resell it.
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2. Gold Bars
In contrast to gold jewelry, buying gold bullion is considered more profitable. This is because you are not charged with production costs when reselling them, so the profits you get are even higher in value. However, you must really ensure the purity level of the gold bullion you buy. Make sure the gold bullion you buy is at the right level according to SNI.