Is it Logical to Invest in Gold ?

Gold investment has been one of the most popular investment methods in Turkey for many years. Especially for the Long-term period, investors prefer to invest in gold. There are some different views about gold. For example Warren Buffett who is seemed as the most successful investor in the world, says that the gold investment is very illogical.

Is the Gold Reliable?

Gold protects its own value if you have a gold accumulation. If you have 5 grams gold this means that you will have 5 grams gold after 5 years; you won’t have 7 grams at the end of this period. In other words; your assets will not grow so the gold doesn’t create a plus value for your accumulation. You can ask this question at this point: Why is the price of gold increasing? For the people who think that the gold investment is not logical, this isn’t about the price of gold, this issue is related to the value of our money and US dollar. They claim that the gold’s purchasing power doesn’t increase. As a result of the inflation, the dollar’s value decreases and this affect the gold prices. America supplies the money on the market and this raises the liquidity.

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Gold Protects You Against the Inflation

Is the Gold Reliable ? Gold protects you against the inflation but it doesn’t provide extra advantage-earnings for your investments. If you desire to make profits, the gold investment is not suitable for this aim. The people who think in this way don’t see the gold investment as logical for investment.

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    fatma Written by:

    Fatma Şahin fatmasahin@istanbulinvestments.com

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