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Welcome to SMART Investing Personal blog. This blog contains information about the Smart Way to Invest Money Yours, Gold, Silver, Diamond, Insurance, and Your Property. Articles in this blog comes from various sources. So, if there is an article I published on this blog and I forgot to include the source. I apologize and please contact me immediately at jurnal.farmasi @ gmail.com

Monday, December 6, 2010

Buy Gold equal to Protecting Your Wealth

Do you know how big companies protect their business assets? They have a way to protect assets with a hedging. For example only, eg the company has debt in foreign currency with a maturity of five years to come. So companies will sign contracts to buy foreign currency at an agreed value, with the date of realization according to the maturity of debt. There is a fee charged, but for large companies is not a problem. Better to pay a fee whose amount can be ascertained, rather than bear the risk that is not limited. In other words, better to pay a fee to obtain a reasonable exchange rate, rather than face the risk of swelling debt doubled due to exchange rate fluctuations.



For us, the public, of course, somewhat difficult to perform such hedging by large firms. Because of course more complicated and even limited access, and assets are not always associated with a dollar value. Therefore, hedging can be done to the general public is to buy gold or savings in gold.

In this case, gold is used as a shield against the value and wealth. And in general the higher the inflation, usually the better gold prices. And the more people panic against economic uncertainty, then the gold price will further rise. However, the opposite applies, the price of gold will tend to a constant when the inflation rate low. Gold prices tend to be slightly decreased even when the inflation rate below two digits and the dollar exchange rate stable.

Therefore, investment in gold is very suitable for use as a protector of wealth. Gold values tend to be stable and have not considered the effects of inflation (zero inflation effect). Circle of gold as an investment consultant call the save haven. Buying gold and gold is an asset savings in a safe and stable, so-called save haven it.

buy gold

In addition, buying gold or investing in gold is different from other investments such as stocks, mutual funds, etc., which require special attention. Instead, save the gold does not require any skill. Just need a small fee to rent a safe deposit box or you store in a safe place at home.

You Have to Buy Gold in order to Protect Your Wealth?

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