- The stability of gold tends to be stable from year to year. Have you ever heard of gold price fall? The answer might be yes, but most of the time is no. Why? In Economic, gold is consider as 'limited supply'. Therefore, as time passed by, the demand of gold will shoot up due to the 'increasing demand' in raw stock to make jeweleries.
- Not affected by inflation like other currencies do (Zero inflation effect).
- Can be withdrawn in the future in physical state to make jeweleries (In bank, you might have to buy minimum quantity in order to do this).
- You might suffer loss if the gold price drops; earn nothing if gold price stay stagnant, and eventually waste a lot of time in order to wait for the price to shoot up again.
- Transaction/ procedure fees.
Perhaps, this graph will give a clear picture on the historical data of global gold price. It is positive gradient on overall.
So, what will happen next?
In conclusion, it is very hard to say that gold investment is highly-profitable. This is because it depends on market situation. It is advised that investors should always keep on updating themselves with the latest market information and get some views from experts. Whenever you can foreseen the opportunity, why don't you give a try. Remember, in Economic, whenever a marginal benefit of doing something is greater than its marginal cost. Just do it! And you will never regret. Do not let the opportunity cost gone like that.
Thanks for spending sometime to read this. Any constructive opinion is highly-welcomed.