Though the gold price movement is directly proportional to the movement of inflation. Whatever the level of inflation, gold prices will rise higher
Gold as if created to represent all things beautiful. like a magnet, this one has it own charm unpresentable despite her beauty in various forms and media. There is no limit for gold to transform. This item is still able to refract comeliness as a high-caste metal
But beyond that, it turns out gold had a "beauty" other. "Gold still represents the ultimate form of payment in the world." as precious metals, gold is the only thing that could be a means of payment accepted universally. Gold has a dull nature of inflation, can be used as alternative sources of investment products
One trigger increases the price of gold is, the more countries that make gold as the safest type of investment. Based on the historical record, for hundreds of years, gold was never loses value. Even the prices always go up with increasing world demand. Besides, this product can protect the risk of impairment of assets due to inflation naturally. The reason the gold price movement is always directly proportional to the rate of inflation. Regardless of the level of inflation, gold prices will rise higher
This could be judging from the few events in the past. As expressed by the expert financial planners, Safir Senduk. According to him, when Japan invaded China during World War, the Chinese People panicked and rushed them in droves so that the price of gold rose gold extraordinary
Events happening in Indonesia rose during the riots in 1998 ago. Gold prices jump directly experienced enough signifikan.Dalam interval one or two days only, direct costs increased approximately 1.5 times. The above incident would reinforce the fact that, in the event of high inflation, then gold prices will rise higher than the rate of inflation. So the realization is, the higher the inflation the higher the gold price rises.
As an illustration, inflation is shown in three types of adverse effects caused by the Moderate inflation, Inflation and Inflation Malignant hyper. Moderate inflation occurs when the rate of inflation just under two-digit year (below 10%). For Malignant inflation, is at two-digit year (10% -99%). While the hyper inflation is when the inflation rate is at triple-digit year (100% or more)
Thus, statistically when inflation rates approaching 10%, then gold will go up 13%. If 20% inflation, then gold will go up 30%. But when inflation climbed to 100%, then gold will rise 200%. Wow, really tempting. Thus, gold as a product, a tool powerful enough to protect the inflation rate
But there are things that must be known, the price of gold will tend to be constant when the inflation rate low. In fact, tend to be slightly decreased if the rate of inflation below double digits. Thus gold would have a high value when there is inflation moderates. And will be higher when there is hyper inflation.
Best of gold has good liquidity, can be withdrawn anytime. In order to return the gold obtain maximum results, it would be nice if you choose gold bullion as an investment. Gold bars into the most liquid investment products and profitable. Simply put, when we sell the gold bars, then the value received relatively intact so when we want to invest in the long term on gold bullion, becoming the best option copied and translated from pojokjakarta.com
