Who has been investing in gold for a long time? Lucky you. The current gold price is around Rp. 900 thousand per gram.
Moreover, leisure broke through the price of a million in the middle of the year after that. That price is a very expensive one as far as the origin of the idea.
True, the price of gold does go up and down every day. It can increase by Rp. 10 thousand today, after that it will decrease by Rp. 5 thousand the next day, or vice versa.
That way, if you want to buy or sell gold, you have to pay attention to the appropriate old so you don’t get hurt. The rise and fall of gold prices is not without reason.
Here are some views that are a factor in gold prices going up and down:
1. Uncertain outline atmosphere
Various events that occur in a country, such as changes in government policies, politics, economics, natural disasters, and social cases can affect the price of gold.
There is an outbreak of the corona virus. The Covid-19 epidemic has had a major impact on the natural economy. Many people choose to invest in safe instruments, such as gold, because gold is known to act like a safe haven investment.
Therefore, the price of gold faces an escalation. Like today, the price of gold is expensive. But once the atmosphere and atmosphere is reasonable, the price of gold will fall because the demand for it is shrinking.
2. Exchange rates that go up and down
The rise and fall of gold prices is also not free from the impact of exchange rates or exchange rates. In Regarding this wearing US dollars. When the US dollar exchange rate strengthens against the rupiah, the price of gold also increases. Conversely, when the US dollar weakens, the price of gold is lured down.
That is, if the exchange rate of the rupiah weakens, the price of gold will rise. You can use that momentum to sell gold. However, if the rupiah exchange rate drops, the price of gold will be cheaper and it’s time to buy gold.
3. Linked to applications and offers of gold
Remember the law of Ceteris Paribus? This law tells and then the demand for the offer increases, until the cost will rise. If the demand goes down, the price will go down.
When many people, it is stated that mothers buy gold, but only a few business people sell gold at that time, surely the cost will increase. On the other hand, if the demand for gold decreases, on the other hand, those who sell a lot, until the cost will decrease.
4. Change in interest rates
The rise and fall of gold prices is also not free from the impact of monetary policy issued by the United States Elementary Bank or The Fed. For example, the escalation or depreciation of the benchmark interest rate.
If the Fed hoists its benchmark interest rates, gold prices will usually decline. Regarding this, it is because investors prefer to put their money in dollar instruments, or loan notes with higher yields.
But if the Fed reduces its benchmark interest rate, people will leave for gold investment because it is considered more attractive and safe. Therefore, the gold price is aiming to be more expensive.
The Fed’s decision to increase or decrease the reference interest rate is influenced by several views, such as inflation, unemployment, economic progress, and others.
5. Inflation rate
Inflation in a country will affect the price of gold. If the inflation rate in Indonesia is high, for example, the price of gold is aiming to be more expensive.
Why is that? Because of investing in instruments whose profits are eroded by inflation, it is better to invest in gold that is safe and has a fair value.
Don’t worry if inflation is high, conglomerates or many rich people diversify or switch to gold investments to secure their wealth.
Longer Gold Investment is Much More Profitable
In investing, you must also have an investment goal. Accumulating gold for what? Is it for the cost of getting married, buying a house, upgrading children, programming for retirement, or something else.
After that, determine the willingness of the funds and the duration of the investment. The amount by making imitations comes at the price of gold per gram.
That way, you can know how much money you have to spend each month to invest in gold. But still matched with your financial capabilities.
To make a profitable investment, buy gold a little for a little, but to put a long duration. For example 4-5 years or more in order to get a meaningful profit.
Because by accumulating gold of long duration, the answer can be close to 10-12% per year. Larger than the interest funds.