Investment in gold remain ideal for investors of past, today’s investor do invest in gold, but more modern investor become interested in gold when the economy is not doing well. And with the introduction of gold standard the price of gold may vary with the variation of economy.
Obviously when economy is on back foot many investors will not be comfortable with the investment and the investors who are more conscious will withdraw their money from any sector of the economy. And they will be more comfortable when they will convert their money into gold. Someone who keep eye on inflation will invest in gold because gold retain its value while cash or any other stock or commodity may lose its value though it may gain growth in number.
Now let us discuss the idea that if investment in gold is a piece of cake or else?
A basic difference between investment in gold and any other investment is that you will have to take physical possaession of the gold in most cases. Some people invest in the gold mining and gold producing companies shares etc Experts believe that the purchase of gold as gold coins or any of it purest form is batter and more fruitful. Because when you invest in any gold mining company or gold producing company share the price of stock will reflect the said company financial health and it may define its market position not the price of gold it have
When you invest in gold and purchase the gold coins you must have to take good care of that and as you purchased the gold from investment point of view you must think about the cost of care (be cause you will either keep it in bank locker or you may hand it over to any security agency. Who will charge money which may cut your profit?)
Normally when investor purchases the gold he pays high rates as compared to rates on which he sell
If investment has been made for specific time period, prices may fluctuate due to many reasons.
1 The ratio between demand and supply may change
2 Economy may do well or become more sunk
3 Speculation may effect on price.
One the other hand you can transform your gold not cash in a flash of an eye. As discussed above inflation have no effect on gold value. And if due to any reason discussed above the price of gold may fall an investor can hold the gold and the experience of the centuries tell us that soon gold will catch up its original price.
Now in the end I wish to sum up the discussion and say that if any investor had purchased the gold from a reputed dealer and it is in its purest form. Plus he has followed the expert’s suggestion that one should not convert his assets more then 10 percent to gold. Then the investment in gold is a piece of cake for him and else he has done otherwise then he may not be able to hold the gold in difficult conditions that may occur due to any reasons discussed above. In that case the investment may not be fruitful for him.