Short-Term vs Long-Term Gold Savings – From the beginning until now, gold is known as an investment object that is quite in demand until now. Gold investment itself has several types, namely gold investment in the form of gold bullion/antam and gold jewelry. Both are easy to get and easy to resell.
But gold investment itself has another category based on the investment period, whether it is short term or long term and both have their own advantages and risks. So what team are you?
For those of you who are going to start investing in gold, you can read this article first to find out what type of investment period is suitable for you and according to your needs so that you can get the maximum amount of money.
Short Term Gold Investment Benefits
Investing in short-term gold can be said to be something that is actually not quite common when investing in gold. Most people choose to wait about 3-5 years to save gold in order to generate higher profits.
However, in certain situations, short-term gold investments can also generate high profits, even 2x than before. That is, during a recession, by only saving 1-2 years of gold and the recession comes, you can immediately sell it.
Because the yield of selling gold is higher when the recession comes. So instead of missing out on a good moment/opportunity, it’s better to prepare to sell your saved gold when the forecast for recession is approaching.
Long-Term Gold Investment Benefits
Long-term investment is the most common gold investment method applied by many people. Because many people are saving gold for future needs. Gold itself in Indonesia is still considered an investment for old age and emergency money when experiencing financial problems.
Well, for long-term gold investment, ideally people will choose between 3-5 years or 5-10 years depending on their individual needs. And indeed, long-term gold investment is considered more profitable than long-term gold investment. Because the price of gold value can be said to be higher.
Especially if the type of gold chosen is 24-carat diamond gold with a purity level of 99% and a beautiful/unique design. The longer you hold it for sale the value will be higher because it is not only seen from the value of the gold content, but also the rarity of the item and the visual beauty of the item itself.
Risks on Short-Term vs Long-Term Gold Investment
Both short-term and long-term investments have their respective risks and benefits. As for the risks, just like any other investment, gold investments, both short and long term, have the following risks:
|Risk Type||Definition||Links to Gold Investment|
|· Inflation Risk||Inflation risk, or what is commonly known as purchasing power risk, is the chance that cash flows from an investment will not be worth as much as it is today in the future due to changes in purchasing power due to inflation.
This risk has the potential to harm people’s purchasing power for investment due to an average increase in consumption prices.
|In gold investment this risk can be associated when the value of gold decreases because a country experiences inflation.
For example, the purchasing power of gold is low, which makes the selling value of gold even lower.
|· Commodity risk||Is the risk caused by changes in the price of certain commodities due to various factors.
This type of risk is related to fluctuations in commodity prices and is influenced by supply and demand.
|In gold investment, this risk is meant when the state suddenly makes new regulations/policies regarding the price/value of gold in banks or in the community.
With policy changes and implementation of different systems on gold transactions. Changes in the value and price of gold can change either it decreases or increases.
|· Financial risk||This risk is related to the funding structure of a company. Sources of corporate funding can be from shareholders in the form of common stock or preferred stock, or through short-term or long-term loans.||In gold investment, this risk is intended for those of you who choose to invest in gold by saving gold in the application or institution.
Because it is like an installment, then one day you might not have money/cash to save gold.
So, the amount of gold savings is getting smaller and the selling value may be lower than the money that has been spent to save gold so far.
|· Business risk||This risk is usually related to the company’s business. Usually, companies in the same sector with the same business are considered to have the same risk.||In gold investment, this risk is intended when you save gold or invest gold in certain applications or institutions.
Where the application or institution is still a business that can at any time experience financial difficulties and go bankrupt.
Tips for Saving Gold for Minimum Risk and Maximum Money Gold Investment
Interested in investing in gold? Well, for those of you who want to invest in gold, be it short or long term. Here are some tips:
1. Choose to Save Gold in a Trusted Institution
Now saving gold in investment is very easy, not only at pawnshops, now you can save gold in several e-commerce and even online e-wallet applications. It’s okay to save gold online, but don’t forget to pay attention to the credibility of the place where you save gold, so you don’t get business risk or even fraud.
2. Buy Gold in a Trusted Place
In addition to saving gold, there is also a way to invest in gold by buying gold directly. Now for those who want to buy gold in the form of gold bullion/antam. Can directly buy it at PT. ANTAM.
And who wants to buy jewelry, buy it at a trusted jewelry store. If possible, who can provide a guarantee that the gold jewelry sold in that place is in accordance with the gold content that was told to you before buying.
3. Store Gold in a Safe Place
For those who buy gold, make sure you have a special place and of course it is safe to put the gold that has been purchased. If you need to buy a small safe box at once if the amount of gold purchased is quite a lot.
4. Must Have a Purpose
Having an investment goal can encourage you to be even more committed to investing. So you don’t just buy and sell gold without good planning. You can set investment goals, for example for marriage, umra/pilgrimage, emergency money, education savings or vacation funds
Choose the one that suits your needs and abilities
Investing in gold is not just about buying gold and storing it and selling it later. But it also has to do with adjusting your financial needs and capabilities.
Don’t force investing in gold if your income is still not able to buy gold and choose a gold investment period that is according to plan. For example, 1-2 years for vacation funds, 3-5 years for additional wedding expenses.
Adjust it and don’t force it so that investment risk can be minimized and profit can be maximized.