Is It A Good Idea For Filipinos To Invest Their Money In Gold?
While it's true that the price of gold in the Philippines increases each year, is it a good idea to invest your hard-earned money by buying gold?
For centuries, Filipinos have used gold as a form of currency or to represent something valuable, like jewelry. Till today, gold is seen to hold its value well. So, the price of gold in the Philippines continues to maintain its stronghold, making gold as a form of investment popular.
But how does gold hold up compared to stocks, bonds, and other forms of investment? Is it still a wise idea to invest your hard-earned money in gold?
What makes gold so valuable?
One of the reasons why gold remains so valuable is that it can successfully preserve wealth. That’s because the price of gold has been relatively stable throughout history. It’s true that the price of gold in the Philippines does go down sometimes. But, the general trend over the years shows that the value has increased.
This also means that investing your money in gold is a good way to hedge against inflation.
You’ll also see a lot of people diversifying their portfolio by investing in mining companies, or in gold stocks, which can be more profitable, but also more volatile. The great thing about gold stocks is that the price of gold isn’t easily affected by external factors. This means that political or financial turmoil in the country won’t easily topple the value of gold.
Another reason why investors see gold as a valuable investment is because you’re investing something physical or tangible. It gives them confidence that the gold won’t simply disappear.
And so long as people deem gold as something that’s valuable, then your gold investment will be well worth it.
How much is the price of gold in the Philippines?
At the time of writing, an ounce of pure gold in the Philippines is valued at 65,548 pesos. And that’s a huge amount of money just for an ounce of pure gold.
But in the Philippines, investors don’t readily have access to gold bars and coins. That’s why gold investors in the country usually buy jewelry, or buy mining stocks instead.
Buying jewelry sounds relatively straightforward, but it requires a lot of expertise when it comes to appraising jewelry. Buying a piece of jewelry would usually cost you more than its weight in gold, and jewelry isn’t as liquid compared to other forms of investment. This means that if you need to convert your investment into cash quickly, you might have a hard time.
Gold stocks on the other hand, are a good investment, but are less stable than actual gold. This means that if the mining industry crashes, then the value of your investment might go down. However, the fact still remains that gold is a stable commodity, so gold stocks are still a safe bet.
Investing in gold should be for the long term. Don’t expect to quickly get rich if you make a gold investment. Gold pays off in the long run, and it’s also used to help against the effects of inflation.
The key thing to remember is that just like any other investment, you need to understand that there are risks to buying gold. It’s not a “get rich quick” scheme like some people might think. Rather, it’s more of a means to diversify your portfolio and a means to safeguard your hard-earned money.
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