Buying Gold to Protect Your Wealth
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Do you know how big companies protect their business assets? They have a way to protect assets by hedging. For example, such as the company has debt in foreign currencies with a maturity of five years to come. Then the company will sign a contract for the purchase of foreign currency at an agreed value, corresponding to the date of realization of debt maturities.
There are fee charged, but for big companies is not a problem. Better to pay a fee, the amount can be ascertained, rather than bear the risk that is not limited. In other words, better pay a fee to obtain a reasonable exchange rate, rather than face the risk of ballooning debt doubled due to exchange rate fluctuations.
For us, of course, somewhat difficult to perform hedging as do big companies above. Because of course more complex and access is limited, and what we have is not always associated with dollar. Therefore, hedging can be done is saving money by buying gold or investing in gold.
In this case the gold is used as a protection against the value and keep the wealth. And in general the higher the inflation, the better will usually increase the price of gold. And more panic of economic uncertainty, the price of gold will be driven up. 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 double digits and the dollar exchange rate stable.
What is meant by inflation?
In economics, inflation is a process of rising prices in general and persistent (continuous) associated with the market mechanism that can be caused by various factors. Among other things, increased consumption, excess liquidity in the market that triggered the consumption or even speculation, to include also a result of ketidaklancaran distribution of goods. In other words, inflation is also a process of declining currency value continuously.
Inflation is the process of an event, rather than the high-low price levels. That is, the higher the price level that is considered not necessarily indicate inflation. Inflation is an indicator to see the changes, and is considered to occur if the price increase takes place continuously and mutually influence affect. Inflation term is also used to mean an increase in money supply which is sometimes seen as the cause of rising prices.
Therefore, gold investment is suitable for use as a protective net worth. Gold values tend to be stable and have not considered the effects of inflation (zero inflation effect). Circles refer to gold as an investment consultant save heaven. Saving money to buy gold and gold is an asset in a safe and stable, so-called heaven save it.
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 skills. It only took a small fee to rent a safe deposit box or you save it in a safe place at home.
Do you know how big companies protect their business assets? They have a way to protect assets by hedging. For example, such as the company has debt in foreign currencies with a maturity of five years to come. Then the company will sign a contract for the purchase of foreign currency at an agreed value, corresponding to the date of realization of debt maturities.
For us, of course, somewhat difficult to perform hedging as do big companies above. Because of course more complex and access is limited, and what we have is not always associated with dollar. Therefore, hedging can be done is saving money by buying gold or investing in gold.
In this case the gold is used as a protection against the value and keep the wealth. And in general the higher the inflation, the better will usually increase the price of gold. And more panic of economic uncertainty, the price of gold will be driven up. 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 double digits and the dollar exchange rate stable.
What is meant by inflation?
In economics, inflation is a process of rising prices in general and persistent (continuous) associated with the market mechanism that can be caused by various factors. Among other things, increased consumption, excess liquidity in the market that triggered the consumption or even speculation, to include also a result of ketidaklancaran distribution of goods. In other words, inflation is also a process of declining currency value continuously.
Inflation is the process of an event, rather than the high-low price levels. That is, the higher the price level that is considered not necessarily indicate inflation. Inflation is an indicator to see the changes, and is considered to occur if the price increase takes place continuously and mutually influence affect. Inflation term is also used to mean an increase in money supply which is sometimes seen as the cause of rising prices.
Therefore, gold investment is suitable for use as a protective net worth. Gold values tend to be stable and have not considered the effects of inflation (zero inflation effect). Circles refer to gold as an investment consultant save heaven. Saving money to buy gold and gold is an asset in a safe and stable, so-called heaven save it.
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 skills. It only took a small fee to rent a safe deposit box or you save it in a safe place at home.
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