Gold has always been a long-term investment option that has attracted the attention of Indonesian people since ancient times. Starting from only buying gold physically to buying it for safekeeping, starting from even IDR 20 thousand.

Now there are many digital facilities that provide easier jewelry purchases where the system is that you transfer a certain amount of money and then physically deposit the gold. The reason gold has been a durable investment instrument since ancient times is because of its high liquidity.

Whenever you need money, you can sell or pawn the gold with or without documents, with the amount of profit depending on the shop. We will discuss more detailed information regarding the advantages and disadvantages of gold as an investment instrument in the following description!

Benefits of Investing in Gold

As a long-term investment instrument, gold has proven to be able to survive in the midst of inflation and provide many benefits when the situation is desperate. Still existing amidst the onslaught of new investment instruments, there are various advantages to investing in gold:

1. Asset Stability
   The first profit is the same as the price is stable following the development of the currency value over each period. This price stability is influenced, in part, by the amount of demand and supply which is always balanced in the global market.
   
   The logic is that as long as supply and demand are balanced, there will be no inequality. The market can meet consumer needs at any time and consumers will always look for gold from various shops for jewelry or investment.
   
   
2. High Liquidity
   The liquidity is high, anyone can quickly turn gold into cash whenever they need it. Unlike property investment which requires a long time and a hot and tough negotiation process, gold will immediately be valued at several rupiah when sold.
   
   Moreover, now it is easier to convert gold investments into cash with the online gold buying application. In just a few minutes the gold resale process will be carried out and the amount of money will be transferred to your registered account number.
   
   
3. Not Affected by Interest
   Another advantage is that there are no interest rules, like in other types of investment instruments. The types of instruments that are subject to the interest policy will automatically have a price difference which may mean that the resale value will not be very profitable.
   
   It's different with gold, as long as you know the right time to sell, the price difference will actually give you a profit. For your information, jewelry and precious metals only make a profit if you resell them at least five years after purchase.
   
   
4. Protecting Wealth
   Even rich people often choose gold to protect their wealth in urgent and emergency situations, such as war or pandemics due to disease outbreaks. For example, England was able to maintain the economy because Queen Elizabeth 2 stored quite a lot of gold in the palace.
   
   This example is proof that jewelry and precious metals are always appropriate in all times. Its resistance to inflation is the reason why jewelry or precious metals are accurate instruments for maintaining wealth.
   
   

Disadvantages of Investing in Gold

In balance with all the advantages, of course there are disadvantages to investing in jewelry or precious metals that you must anticipate. All types of investment come with profits and risks, where in this case, the disadvantages of investing in gold are:

1. Items Can Be Lost

   For those who still keep gold in physical form, the risk of losing it can lurk at any time. Meanwhile, for those who choose to entrust their gold to certain parties, the risk of forgetting their account or password to enter their account will result in loss of gold too.
   
   This risk can be overcome by storing gold in a safe or the safest storage place at home. If you choose to entrust physical gold, don't forget the account name and password to access transactions and monitor the amount of gold.
   
   
2. Small Profits
   The profits tend to be small, they won't be felt in minutes like profits on crypto. If crypto only takes a matter of minutes to show profits, then gold takes decades.
   
   The profits obtained also adjust to the world economic climate, the higher the currency, the higher the gold. The average person invests in gold only to maintain wealth, not to reap maximum profits.
   
   
3. Slow Price Increase
   The price increase is slow, it can only be felt at least five years after you make the purchase. That is also if you find a trusted place and want to buy back gold at the latest price, not following the letter price.
   
   The increase over five years was also not significant, less than 30 to 50 percent, very small compared to other investment instruments. For those who are not too aggressive in investing, gold is the right choice because they don't expect big profits.
   
   
4. Impact on the Real Economy is Small
   The impact of small and slow gold profits is only felt personally by the gold owner. Meanwhile, the impact on the real economy is barely felt at all.
   
   This is actually not a big problem, but when compared to stocks or forex which have an impact on the real economy, of course gold loses out. In the end, choosing gold investment is everyone's preference.
   
   

Conclusion

From all the advantages and disadvantages above, we will provide conclusions on all points. In essence, gold is a long-term investment which has the following advantages and disadvantages:

1. The asset value tends to be stable or in another perspective the price increases and decreases slightly.
2. Useful for preserving wealth, but has no significant impact on the real economy.
3. The liquidity value is indeed high, but the risk of goods being lost can lurk at any time.

Gold is good against recession and inflation, whether gold is owned by individuals or groups. However, gold is considered an investment instrument with very slow returns compared to other investment instruments.

As another investment solution, you can use one of the best products from BNI, namely BLife Plan Multi Protection Plus.