Gold and silver investment is an investment for the long term whose purpose is to protect our value and wealth from the weakening of the purchasing power of money or what we usually talk about in terms of inflation. Gold investing offers an excellent way for investors to store wealth during tough economic times. Gold metal is much more stable than other types of investments.
Precious metals such as gold and silver do have a constant value, but when they are exchanged for currency values, the price of precious metals fluctuates or goes up and down like forex every day. This fluctuation also occurs in gold and silver precious metals that are accompanied by certificates.
Causes of Gold and Silver Prices Can Go Up and Down
- Dollar exchange rate
There is a relationship between the exchange rate of the US Dollar and the gold price set in the market.
The price of gold will increase when the US dollar weakens or it means that the rupiah strengthens. On the other hand, the price of gold will decrease when the US dollar strengthens and the rupiah weakens. You can anticipate things that are not desirable in your gold investment by diligently observing the conditions in the global market. For example, gold investment can be maintained if the symptoms of a global recession occur.
- Offers and requests
The price of gold or silver is related to the balance of supply and demand for precious metals or supply and demand.
Next is the scarcity factor which also affects the price of gold and other goods. If an object, in this case precious metal, is widely available but there is no or little demand from consumers, of course the price will decrease. Conversely, if the available goods are scarce or few and the demand for these goods is high, the price will increase.
In essence, the availability of scarce goods will make the price of goods go up. An example is a property whose level of rarity is absolute so that its value continues to increase. The amount of land available from the past until now has remained constant, but the demand for it is getting more and more because the population continues to grow.
- Increased demand for industries with gold raw materials
As the data listed in World Gold and The London Bullion Market Association:
The demand for gold generally occurs in the jewelry industry in the world, and the largest is in America, China, and India. The demand for gold to meet industrial needs in these 3 countries reached 54%.
Next is the demand that comes from the electronics and medical industries by 12%. The ever-increasing demand to meet the two industries certainly makes the amount of gold available becomes scarce and if the amount is scarce its value will soar as explained in the previous point.
- Gold monopoly globally
It should be noted that the world’s central banks have monopolized the purchase of gold to hoard it, namely, the European Central Bank, the Bundesbank, and The Federal Reserve System. The large gold reserves controlled by the above banks will certainly have an impact on the scarcity of gold in the market. As a result, the price of gold rose.
- global issue
You certainly remember the case in 1998, where there was a massive riot as a result of the mass movement to demand the resignation of Indonesia’s second President, Suharto. The riots triggered chaos in the domestic economy so that the price of gold soared. World gold prices are also affected by global issues such as recession or war.
The reason is that gold is often the mainstay to save the country when chaos occurs due to economic and political upheaval. Automatically the price of gold will skyrocket when these two things happen. The more severe the chaos, the higher the price of gold will be.
What is meant by inflation in economics is an increase in prices, including services, which are expressed in percent. The causes are things that happen in the market, namely, the distribution of goods is not smooth, liquidity in the market is excessive so that speculation or consumption occurs, and people’s consumption rises due to one thing, such as a holiday. Inflation is actually also the process of decreasing the value of a currency continuously.
Because the value of the currency is decreasing and is no longer valuable, people turn to other more valuable means of exchange, namely gold or silver. So when inflation occurs the price of gold will increase significantly.
- Interest rate
Gold prices are rarely associated with interest rate fluctuations, but an increase in gold prices often has an impact on bank interest rates, especially interest rates for savings and bond products. A common condition in this condition is that interest rates will fall when the price of gold increases. Conversely, when the price of gold increases, interest rates will rise.
Investable Forms of Gold and Silver
Various forms of gold and silver can be used as investments. In plain view, these two types of precious metals have differences, including:
Physically gold can be classified into two types: bullion and dinar. While silver is physically divided into two: bars and dirhams (silver coins).
Gold bars and dinars are produced by PT Aneka Tambang (Antam). Likewise, silver bars and dirhams are also produced by PT Antam.
All physical forms of bars and dinars/dirhams produced by PT Antam are accompanied by official certificates so that they are very liquid and can be traded globally. In physical form, both of them are also often found to have become jewelry with various variations, such as precious stones and others. It is not recommended to invest in jewelry because the selling price can decrease.
Investing in this precious metal has several advantages, namely:
It is liquid and will not be easily affected by inflation
Gold prices tend to be stable and over time will also increase, although not too fast. If stored, physical gold will not be easily damaged either by flooding, burning, or other things. Storing wealth in gold is safer than cash.
In investment there is always a risk, including the risk of a decline in gold in gold investment. But if you intend to invest in the long term, storing precious metals will be safer as you store assets in property because the amount of gold is also getting rarer day by day.
You certainly know that in addition to buying gold at individually owned jewelry shops, you can also buy gold in the form of bars or coins that are equipped with an Antam certificate. Many wonder which one is better to choose for investment. Previously, you need to know that Antam’s gold jewelry and gold are also precious metals that are liquid and have high value.
Antam’s own gold is gold issued by state-owned PT Aneka Tambang (Antam). Then what’s the difference? Check out the following points!
- The authenticity of Antam’s gold is proven by the existence of a certificate that accompanies the purchase, so that when you want to sell the gold again, there is no need to test for purity or authenticity.
- In contrast to gold jewelry, the gold issued by PT Antam already has a clear size so you cannot buy some gold whose value is not available. For example, you want to buy gold as much as 5.2 grams, this cannot be done because what is available is gold measuring 5 grams, 10 grams, and so on.
- Buying Antam’s gold is considered safer because it is directly monitored by the government and if things happen that harm the community, the government will intervene.
- The Antam gold that you buy is also equipped with detailed information, for example the year of manufacture and publication which often has an impact on the selling price of gold.
- Antam’s gold price is higher because it is considered purer and equipped with international standard certificates.
Non-physically, gold and silver investment can be done through online trading. The mechanism and the way it works are completely different from physical investments (bars/dinars/dirhams). The online gold and silver trading system is similar to foreign exchange (forex) trading. The most famous example for trading gold online is with the XAU/USD pair system. Meanwhile online silver trading can be found in the market with the XAG/USD pair.
This type of trading investment requires skills, knowledge, up-to-date information and experience that is more complex than conventional trading methods for gold or silver bullion.
Okay, friend, so a glimpse of info about gold investment, but I will not discuss at length about gold investment, I will only discuss the installation of widgets from the selling price of precious metals such as gold, silver, platinum and palladium which are available in the rupiah exchange rate and the US dollar exchange rate.
For blogger friends who want to know this precious metal information in real time from time to time, please see some of the widgets provided by several major sites as a comparison tool for the exchange value of precious metals against currency values.
Live Chart Gold In US Dollar
Latest Gold Prices In Rupiah
ANTAM Gold Price in Rupiah
BI Exchange Rate Gold Price (US Dollar)
Prices of Some Precious Metals in US Dollars
Live Update Gold Price In US Dollar
Some Benefits of Using Gold Price Information
- The latest gold price information is very useful for blogger friends who are trading precious metals.
- Knowing the development of gold and silver prices from time to time.
- Knowing the value of precious metal investments in real time (up to date).
The foreign exchange market (English: foreign exchange market, forex) or abbreviated forex is a type of trade or transaction that trades the currency of a country against the currency of another country (currency pairs/pairs) involving the main money markets in the world during 24 hours continuously.
The movement of the foreign exchange market revolved from the New Zealand and Australian markets which took place at 05.00-14.00 WIB, continued to the Asian markets namely Japan, Singapore and Hong Kong which took place at 07.00-16.00 WIB, to the European markets, namely Germany and the UK which took place at 13.00 –22.00 WIB, arrived at the United States market which took place at 20.30-10.30 WIB. In historical developments, the central banks of countries with the largest foreign currency reserves have been defeated by the forces of a free foreign exchange market.
Thus, if the information that the author can provide, if there are words that are less pleasing and the information is incomplete, the author apologizes and please understand. Don’t forget to look at other articles related to the discussion of this article because there may be tips and tricks that may not be written in this article but are written in other related articles. Hope it is useful.
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