Want to Buy Gold When Prices Drop? This is the Disadvantage of My Money – 18 hours ago

Jakarta, CNBC Indonesia – The price of gold is experiencing a decline this day. Just say it at the pawn shop, where Antam type gold bullion fell by IDR 1,000, retro by IDR 5 thousand, and UBS by IDR 6 thousand.

Is this the time to buy?

It’s no secret that the price of this asset, which is often referred to as a safe haven, tends to rise when economic uncertainty occurs.


Plus, gold bullion is quite interesting because of the nature of this instrument which is a real asset.

But make no mistake, despite the many advantages, gold also has a number of disadvantages that you should be aware of. So, if you intend to buy gold then be aware of some of the disadvantages below.

Gold does not produce passive income

Deposits will earn interest, government securities have yield coupons, meanwhile a number of mutual funds and shares can give you dividends. Meanwhile gold cannot give you income in the form of cash like the financial instruments above.

The only advantages of investing in gold are: capital gains or the increase in the price of gold itself over time.

Gold is absolutely not short-term

Don’t expect profits from investing in gold in the short term, you could actually suffer losses because there is a high difference between the purchase price and the gold buyback price.

Sometimes the difference between buying and selling prices is quite high, it can even reach double digits. That is why before you invest by buying gold, you must be firm with long-term investment goals.

Gold prices slow down when the world economy stabilizes

Hasn’t gold investment generated significant profits in the last five years? Yes, that’s right, but be aware that the increase in gold in the last five years has been caused by external factors such as the trade war between the United States and China, Covid-19, and the banking crisis in the United States.

In essence, no one can predict what will happen in the future. When the economy is stable and there are no more bad sentiments emerging, the price of gold can slow down. This slowdown is caused by investors in the world being more interested in placing their money in risky assets such as shares and others, rather than gold which is a safe haven.

The decline in gold prices will certainly affect the buyback price of gold, which could result in investment losses.

The risk of missing is quite high

This applies to those who invest in gold bullion. Even though there is digital gold provided by several investment platforms, there are still many people who think that it is safe to buy gold by buying physical or bullion.

When we have gold in real form, there will be a need for us to store it in a safe place.

Even if you store it in a place that you feel is safe, the risk of loss due to theft still exists. For this risk, you can overcome it by renting a safe deposit box.

[Gambas:Video CNBC]

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