Is Gold a Good Investment For Long Term?
We know gold is a precious metal that well known from the centuries ago.
Pure gold has a beautiful yellow luster; not easy to react to other chemicals.
Although it still reacts to chlorine, florin and aqua regia.
But is the glory as beautiful for its investment savings?
Let’s examine the prospects for gold investment in the long run.
Each investment has a different risk from low risk to high risk.
Generally investment with a small risk then the profits will be much less, but the risk of losses is minimal.
High-risk investments have a high likelihood of profit
However, should also be careful because if a fault in analyzing and applying this model is at risk of significant losses as well.
Well, gold is an investment that stands between the two examples above, this is an investment with medium risk.
Why is gold so valuable?
Gold is a unique metal that is very interested in humans; gold can raise the social status of someone and gold also has economic value because it can be an investment that has an exciting prospect.
Throughout the history of human, gold can adapt to inflation.
Unlike the exchange rate of currencies that tend to fall on the value of the price of goods.
What the reasons for the value of gold continue to increase? Is due to the amount of gold that can not be renewed, meaning that the raw material of gold is a source of nature that can not be produced so that high market demand for gold makes the selling price continues to rise.
Operational costs to generate gold are also high, from the mining research process to the gold printing requires resources at a prohibitive cost.
Gold also has value density, because it is easy to store and carry anywhere with a very high exchange rate.
Compare if you keep a banknote ten years ago if the money was ten years ago can buy 1 ounce of pure gold, whether at this time the amount of money saved is enough to buy gold with the same quality and weight?
Gold tends to have a positive trend against inflation compared to currencies and other various commodities.