Golden Physical Or Online Gold

If you are interested in investing in gold, you can do it the traditional way by storing gold physically in the form of gold bars, coins, or jewelry. This is the way of conventional gold investments that have also been done by our ancestors even to this day. So what exactly is the risk of this investment capital? The risk of investing in physical gold is the declining price, the loss of being stolen when it is stored at home, or if it is in the form of jewelry is a possibility to be grabbed or robbed.

To ensure its security you can keep your gold deposit in the bank, but of course there is a fee for care services that you must pay. While the profit potential that you can get from physical gold investment in fact not too big when compared with online gold investment. In addition, the cost required to buy gold is also quite large. If you decide to buy gold little by little this is also of course can be done but you certainly know that the gold price fluctuates and refers to the market price located at the world gold trading center loco in London England.

As is widely known to date there are still many investors who are confused in distinguishing between physical gold investment and gold futures or often said as an online gold investment. The most striking and differentiating of these two types of investments is that online investors do not need to have physical gold while on physical gold investments, investors certainly keep some gold bullion that will be sold at the right time, that is if the gold price is rising.

Things that differentiate the golden investment of physical and gold online

If you prefer to choose one of these types of investments, such as physical gold investment or online, you can reassess whether your choice has been right, or is in accordance with your priorities and needs.

To help you here are some things that can be a comparison between physical gold investment as well as online gold.

Comparison of capital

In physical gold investment investors are required to provide capital or funds in large quantities to buy some gold bullion which will be stored either in banks or pawnshops. This means that the capital you have spent to buy gold will be silent in the form of physical gold or gold bars. If you buy gold at the lowest possible price and sell it when the price is rising then you will get double payback.

While the online gold investment you simply provide capital about 5 million dollars which is certainly much cheaper than the capital you have to spend to buy gold bullion. By opening a gold trading account you also make gold transactions but online by offering the gold you have on interested buyers. Thus you do not have to worry if the price of gold has decreased. This is because your gold futures hold steady.

Security

You can also compare between physical gold investment and gold futures or online in terms of gold investment security. If you are running a physical gold investment you should consider carefully the safest place to keep your savings because of the risks mentioned earlier. In general, gold bars are stored in banks or pawnshops. But this facility is certainly paid.

In online gold investment, investors do not have to worry about whether his gold is in a safe condition or not. This is because the traded gold is physically stored safely at the Bullion Association in London. Although deposited in the bank, the owner of gold is not burdened with the cost of such storage.

The position and price of gold

Next consider the direction of potential reciprocity opportunities you may have. On the physical investment of gold or bar that you sell when the price is rising, of course you will get a profit. Conversely, if the gold bullion you are lego when the price is down for example because it requires fresh funds in quick time of course you will lose money. This is why it is very important for you to set the best strategy possible so that the return you want can be achieved. One of them is to monitor the movement of gold prices on a regular basis.

But if you run an online investment of the transaction activities you run will not depend on either the time or the sales strategy. This means you can still run the business even if the price of middle gold is not stable or experiencing sharp fluctuations.

Potential advantages and disadvantages

Gold investment in general is very appropriate if our goal is to lock in our wealth and assets. Gold investment can we say like having a money tree that will continue to provide benefits because the price is always increasing from time to time. However, you should also remember that this precious metal is part of a commodity affected by the movement of global economic conditions. The important thing we have to do is to deepen the knowledge to predict the market price so that the strategy we apply successfully.

From the description above we can conclude about some advantages of gold investment online

Investment capital

To start gold investing online you do not have to provide start-up capital in an enormous amount of investments in physical gold. For physical gold investments, investors must provide funds to buy gold in physical form (sticks, coins, or jewelery) plus funds for the cost of daycare services at banks or pawnshops. While for online gold investment capital initially more affordable. Only with a capital of about 3 or 5 million rupiah you can open an account for gold trading.

Opportunity profit

The main purpose of all types of investments is to earn profit or profit. If your investment goal is for long term then physical gold is suitable for you as it is longer stored then the price will increase. This is in contrast to online gold trading in which investors have the potential to earn a reciprocity anytime with a larger profit amount.

Price and transaction conditions

In online gold investment investors can act as a buyer or seller so as to adjust to the conditions of profit or opportunity to bear the risk of loss when the price of gold has decreased or increased. This is different from investors who invest in physical gold where he acts only as a buyer and thus must bear losses when the price of gold decreases.