Even Though The Price Continues To Rise, Gold Is Called Not An Investment Instrument

Officers showed Antam's gold at the Antam Pulo Gadung Boutique, Jakarta, Tuesday (14/3/2023). (Between/Aditya Pradana Putra/tom/pri)

JAKARTA The price of gold bullion in PT Aneka Tambang Tbk (Antam) has increased significantly recently. However, some gold circles are said not to be investment instruments.

Quoting Antara, the price of gold increased by IDR 15,000 per gram to IDR 1,179,000 per gram on Tuesday, March 5, 2024.

Three days later, Antam's precious metal price rose again to Rp1,204,000 per gram, as well as set an all-time high.

Gold has been one of the favorite investment instruments since time immemorial, especially women. Gold investment is also an interesting alternative in the midst of current economic uncertainty, because it is considered a step to protect investment value (hedging).

Gold itself has been a medium of exchange and value storage for thousands of years, since the Roman and prophet times. Its value tends to be stable in the long term, even when the value of other currencies fluctuates.

Gold is one of the most valuable commodities in the world. So valuable, this item is also traded around the world. Gold becomes a precious metal that is loved a lot, both for currency and jewelry.

Along with the development of the times, gold has become an asset. In fact, recently many companies have emerged in the field of buying and selling gold and are aggressively campaigning for gold investment.

Citing the Ministry of Finance's website, investment is an investment activity, either directly or indirectly, with the hope that later the capital owner will get a number of benefits from the investment.

Meanwhile, the Big Indonesian Dictionary means investment as investment or capital in a company or project for the purpose of profiting. In general, investment can be interpreted as taking advantage of or taking advantage of time, money or energy for profit or benefit in the future.

Seeing this deficiency, it can be said that everyone who buys gold with the aim of investing hopes for future benefits from the gold ownership.

Is it true that Gold will make a profit?

Talking about investment, each investment has a different type of profit. For example, investing in deposits and bonds generates interest, investing in stocks produces dividends and capital gains, or property investments will generate rent.

But actually when investing in gold, nothing happens with the gold purchased. There will be no increase in gold ownership with time going on.

Throughout its history, gold prices have tended to consistently increase in nominal terms from year to year. But in real terms, gold prices tend to be stable for hundreds of years. That's why according to the Ministry of Finance's website, gold is a wrong investment.

Gold is more precisely referred to as savings because the price is stable. Savings in gold will provide security because it can fight inflation.

Simply put, the increase in gold value in the future is the same as the current value of money. The value of gold has not changed until now, because what has changed is the value of the money which is getting lower.

Even so, considering gold as an investment is still better than not investing at all. However, the public needs to know about investing in gold, even though it is considered a minimal risk, it must still be done carefully.

Moreover, until now there are still many people who think that gold jewelery and gold bullion have the same advantage. In fact, gold jewelry has a greater risk of loss than gold bullion.

In mid-2023, for example, the virtual world was shocked by the actions of a number of hysterical mothers after knowing that the Berkah gold shop in Pemalang was permanently closed because it was bankrupt. In fact, the gold shop is reported to have been established for 20 years and is one of the most trusted by the local community. They are hysterical because they are worried that the jewelry gold deposits purchased at the shop are not sold in other places or are losing money because the buyback price is cheap.

Financial planner Aulia Akbar said the public needed to change the mindset regarding gold jewelery investment. Aulia assessed that until now there are still many who believe that gold investment can be in the form of precious metals or jewelry. In fact, considering gold jewelry as an investment is not very appropriate, because gold jewelry is more suitable as a use asset.

"Mass jewelery is not an investment instrument, for example when the price of gold goes up but those who have gold jewelry don't necessarily party, it could even be that the price drops below the market or the purchase price," said Aulia.

Why gold jewelry cannot be used as an investment, because gold made as jewelry requires manufacturing services. The cost of this service is borne by the buyer of jewelry and when resold the price of gold will be cut again because the gold owner is charged with the cost of fused gold by the gold shop.

Therefore, Aulia assessed that gold is more suitable to be called a hedge for the value of money so as not to be eroded by inflation.

When prices for basic necessities continued to rise, prices were indeed to fight inflation since ancient times, Aulia explained.

"Gold to protect the value of wealth in the future, just in case. If we pull back the price of gold over the past 10 years, the average increase is seven percent and this is enough to offset inflation," he said.

Even so, Aulia reminded that in investing, whatever it takes, a person must first check his financial condition. The main thing is the fulfillment of emergency funds and health insurance such as BPJS.