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| Venus Kusumawardana, S.E., MM. |
In planning finances, many people seek safe and profitable options. One alternative often considered is savings and gold investments. However, like all types of investments, some advantages and disadvantages must be carefully considered for individuals who want to invest in gold.
According to Venus Kusumawardana, S.E., MM., a lecturer in the Banking D3 Study Program at UMM, before deciding to save or invest in gold, she explained that individuals thoroughly understand the advantages and disadvantages.
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"Savings and gold investments can be good choices to protect asset value and diversify portfolios. However, it is important to understand that no investment is risk-free. The decision to invest in gold must align with each individual's financial goals and risk tolerance," she said.
Furthermore, Venus, affectionately known as Venus, stated that gold has proven to be an effective hedge against inflation and currency instability. Not only that, in the sometimes unstable financial world, portfolio diversification becomes essential. Adding gold to the investment mix can help reduce the risk of significant changes in the value of other assets.
Portfolio diversification is a way to spread risk by having various types of investments in a portfolio. Having various asset types, such as stocks, bonds, and possibly gold, can reduce the negative impact of poor performance in a kind of investment on the entire portfolio.
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"Investment in gold is often seen as a stable long-term option. The increase in the value of gold over time can be a good strategy for long-term investment goals such as retirement or future wealth. On the other hand, gold is also often sought as a safe haven during economic crises or global uncertainty. During periods of economic instability, the price of gold may rise as investors seek security," Venus added.
However, one of the drawbacks of gold investment, compared to stocks or bonds that can generate passive income, such as dividends, is that gold does not generate regular income. Profits are gained when the value of the asset increases, but such changes may not be consistent or may vary over time. In other words, the asset's value can go up and down. Profits can be earned when the asset's value increases, even if the conditions are not always stable or may change.
"Even though, it is considered a hedge, the price of gold is not always stable. Global factors, such as changes in monetary policy and geopolitical conditions, can significantly impact the value of gold. For those who store physical gold, storage and security costs can be a burden. In addition, investing in gold instruments such as Exchange-Traded Funds (ETFs) may involve trading and management fees," she added.
Finally, Venus provides tips for individuals who are new to investing in gold. First, clearly define the investment goals, whether short-term, medium-term, or long-term. If the goal is long-term, consider whether it is for investment or price appreciation. Second, use money that will not be needed shortly, namely, cold money after daily needs are met. Third, make investments regularly if funds are limited.
"Next is to monitor economic developments and the price of gold, whether the economy is in crisis or doing well. If there is a crisis, the investment promises a more promising increase. Furthermore, to ensure the storage place is secure, especially for beginners. For purchases, it is advisable to go to a reputable gold shop and obtain a certificate or receipt as proof of ownership," she concluded. (rev/wil/fajr)
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