Gold is considered a “crisis-proof investment” in two senses:As an additive to make a diversified portfolio more resistant to fluctuations in the financial markets. As an “emergency currency” when money loses its value in a systemic crisis and gold trading in hong long is very crucial.
Important factors influencing the price are, for example, the general level of interest rates, the demand from the jewelry industry and the current production volume of the gold industry. Experience has shown that the gold price often moves in the opposite direction to the stock market, as the demand for the precious metal, which is considered “crisis-proof”, increases in weak stock cycles.
In contrast to stocks, however, gold is a speculative investment as it does not generate any interest or dividends so buy gold in hong kong.
Investors who want to generate a return by buying gold must rely on future price increases. An increase in the gold price is even necessary to maintain the capital employed, because gold trading is associated with transaction costs.
Opportunities / advantages:
- Experience has shown that physical gold does not lose its full value even in crises .
- Most gold investments can be sold at any time .
- If physical gold or Xetra-Gold are held for at least one year, a tax-free sale is possible.
What are the disadvantages and risks?
- The gold price is volatile and there is a risk of loss.
- Most gold investments are speculative; They don’t generate interest or dividends.
- There is a risk of theft. If it is to be insured, there are insurance or storage costs.
- There is a currency risk as the gold price is always quoted in dollars.