How to Be Successful in Gold Investment – More and more people are now spending time developing their future by investing. In investing some people can get an advantage in it. There are many types of investment that you can try. One of the businesses is the gold business. Gold is one type of investment that is quite safe, easy and also profitable.
Gold has long been known as a long-term investment product because the price of gold has never been affected by inflation, thus making precious metals called savings for the future. Currently, gold has been widely traded for the short term in non-physical forms such as stock price indexes or currency trading (Forex).
That way, investors can benefit from the difference between the selling price and the buying price.
Things to Look for in Gold Investment
1. US Dollar Movement
The correlation between the exchange rate of the US dollar and gold is negative, so if the US dollar is strengthening then the price of gold will go down and vice versa, if the US dollar is weakening, it is certain that the price of gold will rise.
If there are global issues involving the economy and market uncertainty, this makes many investors to buy gold and sell US dollars because they are considered dangerous. And this pushed the price of gold to rise.
2. World Gold Production
In investing in gold, we need to first know which countries are gold producers. Big countries such as China, South Africa, Australia, United States, and Peru.
Just like other commodities, the price of gold is also affected by supply. If gold is getting rarer, it can increase the cost of gold production and the price of gold will be higher.
3. Demand from Jewelry Industry
Gold industrial countries such as China, India, and America have a lot of gold demand up to 54% or about 3,812 tons. Even in two months the three countries can take a portion of gold up to 200 tons of gold.
In addition, about 12% of gold demand comes from the medical and electronic equipment industry. So with that, when investing in gold we need to also pay attention to the movement of gold prices in the global market.
Now, speaking of gold bullion investment, there are two producers who dominate the market, namely Antam and UBS. One of the differences between Antam’s gold and UBS is that 90 percent of the market share is controlled by Antam, while the remaining 10 percent is controlled by UBS.