You know, investing in gold can be very promising to anyone, but every investment there are many things to watch out for or pay attention to so that losses, as well as investing in gold clicking here. Some other weaknesses that may be experienced by gold investors to watch out for related to the decision of ownership of gold as an investment are as follows :
1. The risk of losing is quite high
Gold investment in the form of bars with a considerable amount is prone to this risk. So to protect their assets, gold investment holders are usually willing to pay more funds to rent a safe deposit box which is a bank facility to store files and belongings of customers that are considered to have a high enough value.
2. The price is fluctuating
Although the trend of gold prices always increases, the increase does not necessarily occur every day and is not an event that takes a little time. Called to tend to increase the price of gold because the review was carried out within a few years. Gold also sometimes experiences a decrease in selling prices although it is not uncommon to experience an increase. These frequent changes in gold prices have the potential to make it difficult for gold investors to be able to calculate the value of the gold investment we have in the future.
3. Very Small Impact on the Real Economy
Having a gold investment cannot make a positive contribution to economic growth in real terms. This is because the profits owned tend to be used for private interests of investors, although some gold investors use these investment profits for spending needs, which is spending or consumption as well as an indicator of economic growth.
4. Is a long-term investment
Gold investment is not a suitable alternative for investors who want quick profits. Fluctuations in gold prices that are large enough can not guarantee investors will get large profits in a short time. As previously mentioned, the tendency of the price of gold to rise is a fairly long process, meaning that to benefit from the difference in the purchase price and high selling prices cannot be done in a short time.
5. Prices tend to slow down when economic conditions are stable
Gold prices tend to increase when economic conditions are unstable. It could be that at this time there was inflation which caused an increase and also a decrease in the price of gold. It could be that a stable economic condition will encourage people to consume properly. If there is an unstable economic condition, gold will be the safest alternative for securing investor wealth.
Learn more about what are the investment weaknesses that you will choose, will prevent you from losses that may arise due to mismanagement of investment funds.