Gold investment is one of the most popular types these days. However, you definitely need to know about its disadvantages so you can make the right decisions when you’re investing your gold. Aside from that, you can also check out our website to know more about ways to invest in gold.
Some of the other weaknesses or weaknesses that gold investors may experience associated with the decision of gold ownership as an investment are as follow:
1. Risk of High Loss
This is the first risk faced by gold investors, especially those who make gold in the form of everyday jewelry used. This risk arises from the occurrence of robberies that may occur especially when the jewelry used is quite a lot of conspicuous. The investment of gold in the form of bars with a considerable amount is also prone to this risk. So to protect their assets, gold investment holders are usually willing to pay more funds to hire a safe deposit box that is a facility of a bank to store files or goods owned by customers who are considered to have a high enough value.
2. The price is volatile
Although the tendency of gold prices always increases, but the increase does not necessarily happen every day and is not an event that takes a little time. Called a tendency to increase gold prices because the review is done within a few years. Gold has sometimes experienced a decrease in selling prices although not infrequently increased. Changes in gold prices often have the potential to make it difficult for gold investors to calculate the value of the gold investment that we have in the future. Perhaps some investors will take the middle value of a fluctuation in the price of gold per gram to calculate future investment value at a certain interest rate. This may not have much effect on investors with a gold investment that is not too fantastic but will be quite a heavy consideration associated with the fluctuating price for investors with the amount of gold investment that can be said a lot.