Investment with Gold
The price of gold was soaring at this time, so as to raise the question whether gold could be made safest investment. Nevertheless, there was no rational theory that could explain why the person was happy of investment in the gold commodity. Gold had the value because all of us believed that gold had the value. Almost everyone was of the opinion that the characteristics of gold were to be equal to money.
Many people invested by buying gold and were also that bought gold coins. It was increasingly old, the price of gold increasingly increased. Then the person who had gold or gold coins will not be unfortunate because they could sell again their gold or gold coins. Many people said that Investment by using this gold will bring the good impact. These efforts could give the production that could be ascertained.
The determining factor of the price of certain gold was supply and demand. The speculation of the gold commodity was just the same with the other commodity speculation. However that distinguished was that gold was not consumed like petroleum and coal. If the supply of oil could increasingly diminish because of being finished was burnt, whereas the supply of gold will increase together with the existence of the mining of gold.
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i must disagree about the latter part of this article. gold has NO supply curve as it is basically fixed. hence, the only determinant is demand
Yes, strongly agree with you. Currency exchange using gold (dinar/dirham) gets more stabil than dollar. That is why that’s good idea to turn Rupiah/Dollar into Golden money.