5 Gold Investment Risks That Must Be Known

5 GOLD INVESTMENT RISKS THAT MUST BE KNOWN

Investingkia readers should understand and recognize what kind of gold investment risks before deciding to invest. Gold investment commonly referred to as safe haven currency is inseparable from the name of risk. Risk can hardly be avoided but we can manage the risk.

Before you learning about the main strategy of gold investment, it's worth to know about 5 Gold Investment Risks That Must Be Known.

As we know that everything activity has its own risk. Big or small risk is dependent of who runs, not from the activity it originated. Basically an activity is the spot that can not moved, in the sense if we do not want to run the activity then we will not get the risk (the activity itself could mean is any  of investments).

HERE WE GO !

5 GOLD INVESTMENT RISKS THAT MUST BE KNOWN

Number One : WATCH OUT FOR THE FAKE GOLD

This risk is regarded most commonly encountered by the layman because very many of them do not understand exactly what the real gold and what kind of the fake gold is. They further see that the offered gold has a better sparkle "shiny" and have affordable price.

There are various forged gold such as gold coins, gold bars, to gold securities (gold certificates). Not only that, fake gold is very often used as one of the weapons to launch a fake gold investment to the layman and its main target is the people who live in areas where income levels are not high and education is not high. So it is very likely that fake gold investment activity occurs.

But now you do not have to worry, if you are one of those people who do not understand correctly about the quality or content of a gold, it is better to buy or invest gold in official registered and supervised by the government. So it can be ascertained that the gold traded or in other words gold that you will make the investment has a trusted quality.

Number Two : THE SAFE GOLD STORAGE ROOM

One of the most important things to consider in gold investment is to get a safe gold storage space because the risk of losing physical goods or gold in investments can be very detrimental to the investor.

You need to know that at this time many providers of gold storage space is safe, one of which is a deposit box. But you need to pay attention also about who or what agency or company and what kind of credibility in handling gold storage that they have. The best solution is that you do the gold storage of proceeds or for your investment in agencies that are trusted by the public and supervised by the government, in this case could be a bank that has a gold storage facility.

In addition to the level of security, of course you have to make sure that the cost necessary to hire a safe gold storage does not have a high cost because if you only think about the security without the comfort for your finances, then your gold investment becomes useless and you may suffered losses because the cost you need for storage is very large.

Number Three : INVESTMENT FRAUD / COUNTERFEIT INVESTMENT

This risk relates to the first point about the 5 Gold Investment Risks That Must Be Known, in which the perpetrators who make or offer false investments of any kind investments (gold, money, stock, property, etc.) always put great promises, such as by using the slogan that "instant profits and without risk "or there is also an appointment to double gold in a very short time (in a matter of months or even just one month).

This fraudulent investment / investment scam is often offered to people who are struggling to make money, need a lot of money in an instant, and who is definitely a very lazy person.

Again, the right solution to any investment is to ensure that the one who offers the investment has a legal entity (officially registered and supervised by the government), and has a legal investment product / obtained / obtained in a legal way ( according to the applicable law).

Number Four : ALWAYS WATCH FOR GOLD PRICE FLUCTUATIONS

For example, on October 6, 2017 you bought gold at a cost of $ 46 and by chance on this day of December 10, 2017 you want to sell it. Current price is $ 36.

There is a loss of $ 10 from the first purchase price. Approximately if such a profit or loss? The second condition, for example on January 3, 2016 you buy gold at a cost of $ 42. Then on July 10, 2016 you sell at a rate of $ 70. So there is a difference of $ 28. In the first case you incur a loss of $10 while in the second case gain of $ 28.

Always remember that gold is not always experiencing continuous price increases and not as long as its gold continues to decline. In essence you should have understood and noticed the pattern of increase and decrease in gold prices.

Number Five : NO FAST INCREASED PROFIT

If you want to invest in gold, you need to understand that in gold investments there is no quick results compared to other investments, because gold investments have a level of fluctuation in the increase or decrease that is not far each position. In contrast to property investments that have increased soaring when influenced by local government policies and even the price or value of the property will not fall back.