GOLD AS AN INFLATION antidote

Many people believe that gold is an investment product that can ward off inflation. And indeed, history will prove gold diborong a panic that could endanger the nation's economy, such as high inflation, financial crisis, or war.


Inflation is rising prices of goods and services in general. Inflation could undermine your money. If the assumption of inflation of 15 percent per year, the price of goods & services that are now worth Rp 5 million, will be USD 10.06 million, or twice in year-6, and USD 15.3 million or three times in year -9, and so on.



According to severity, there are three types of inflation:

1. Moderate inflation, ie when inflation rate was just under double digits per year (below 10 per cent)

2. Malignant inflation, ie when inflation rate is in double digits per year (10 percent - 99 percent)

3. Hyper inflation, ie when inflation rate is in three digits per year (100 percent or more)

This paper will discuss about what you can do in order to deal with inflation. If you are not among decision makers in government, you probably can not go down the inflation rate. All you can do as individuals, is how you can take 'advantage' of the occurrence of inflation. How do I? I suggest you invest on instruments that will increase rapidly in the event of high inflation. What is it? Gold.

When Japan invaded China during World War, the Chinese people panic and they rushed in droves so that the price of gold rose gold extraordinary. In Indonesia, in the event of necessity rush at the supermarket on January 8, 1998 (early morning before the Budget announcement by President Suharto in front of the Parliament), the price of gold also jumped directly. In every other two days, gold prices climbed roughly 1.5 times as much. And these prices, though volatile, tend to rise and hold at that time - before finally falling back again when inflation under double digits.

Facts prove, if there is high inflation, gold prices will rise higher than inflation. The higher inflation, higher gold prices. Statistics show that when inflation reached 10 percent, then gold will rise 13 percent. If inflation is 20 percent, then gold will rise 30 percent. But when inflation is 100 percent, then your gold will go up 200 percent. This is why you should consider investing in gold. This is because gold is an investment trust as an antidote to inflation. The higher inflation rate, the better will usually increase the value of your gold. However, worth noting that the price of gold will tend to a constant when the inflation rate low, and even tend to slightly decrease the rate of inflation below double digits. So, gold will be good only when there is inflation moderate (two digits), and it would be great if there is hyper inflation (three digits). Gold Investment

Gold is available in several options. Some of the best known of them is gold jewelry and gold bullion. One is also gaining popularity in Indonesia is a gold coin.

When you invest in gold for the short term, usually will be difficult to get a profit if the shape of gold jewelry. This is because if you come to the store and buy gold jewelry, you have to pay the price of gold plus the cost of manufacture. Well, when one day you sell it back, then the store would not want to pay the cost of manufacture of gold jewelry. He will only pay the price of gold alone. In fact, really lucky if the store will accept your gold jewelry. Some stores sometimes refused the sale of gold jewelry from the public. The causes can vary. One of them is because they fear that the gold jewelry does not sell anymore when sold. So, even if they buy again, they have to melt the gold.

Therefore, investing in gold jewelry better off if stored for long term. Because usually you're the gold price has gone up a lot than when you bought it.

Gold jewelry is available in various carat, of which 18-24 carats. For investment, it would be nice if you select $ 24-carat gold jewelry. This is because the possibility of gold jewelry can be sold back much larger than the 18 carat gold jewelry. Once again, the investments in the form of gold jewelry will usually only provide a favorable outcome in the long term, not short term.

Gold investment which I think is good enough investment in the form of gold bullion (precious metal gold.) Gold was good enough when used as an investment, and whoever does not deny that gold bullion is different from gold-jewelry-easy to resell. In addition, gold does not ask the cost of manufacture as well as gold jewelry. Therefore, if you want to invest in gold, it would not hurt you to consider investing in gold bullion.

Others are Gold Coins ONH (pilgrim fare). That is, the gold coins is expected to be as an investment alternative for those who want to save money to prepare for the pilgrimage costs.

Naming ONH is actually only a marketing tactic only. In fact, although his name Gold Coins ONH, but these investments the same as other gold investment because the gold price are the same. The price is the same as the gold price following the price of foreign currency (U.S. dollar), and secure against inflation. That is, people who are not even Muslims can invest in Gold Coins ONH because these investments actually is the same as other gold investments. In fact, naming the ONH in Gold Coins is actually very beneficial to the holder, because the gold will be better to have a better positioning in the market.

Gold Coins ONH can be bought and sold on the branches throughout Indonesia PT Pawnshop, gold shops, and units of processing and refining of precious metals miner PT Aneka Tambang Tbk. Weight size from 1, 5, and 10 grams.