Jun 2, 2017 by admin

Is buying gold a profitable investment?

Gold plays a vital role in a nation's economy. Gold is not a primary form of currency it used to be but, it is still very strong and serves as a long-term investment. Over last few years, gold prices have declined. But over time, it also indicated that it is a good decision to invest in gold.

Key Factors to consider before investing in Gold:

  • Investors buy gold during the financial crisis.

  • Investors rush to gold when the US dollar's value decline in the economy.

  • Gold will exist even if the world faces financial crisis.

  • Most popular ways to invest in gold

  • Buy gold directly in the form of billions.

  • Buy raw gold, as it generates high profit.

Advantages of investing in gold

  • Gold has easy liquidity in the world.

  • Gold maintains its value over time even during the decrease in its prices.

  • During inflations, gold is a stable investment than cash.

  • Gold is used for making jewelry there is a high demand for gold due to that price of gold stabilize.

  • Gold is also used for industrial purpose.

Disadvantages of investing in gold

  • One has to wait for the value of gold to increase so that they can sell it at high prices.

  • Tax rates are higher on gold investments.

  • Your investment loses value when overpriced Golds prices decreased.

  • Need to buy the gold, and store it and insure it as well.

  • The value of gold and dollar are inversely proportional to each other because when gold prices increase the dollar loses its value.

Best time for investing in gold is when you are expecting inflation.When the reserves banks prints out more currency, it is the best time to invest in gold.

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