Gold Investment Is A Safe Choice For People Amid Global Economic Uncertainty

Illustration. (Photo: Doc. Antara)

JAKARTA - Academic of Syiah Kuala University (USK) Banda Aceh, Chenny Seftartaria, said that gold investment is the safest choice for the community amidst the uncertainty of global political and economic conditions.

"In uncertain conditions like today, of course, gold investment is the safest choice," said Chenny Seftartaria, in Banda Aceh, quoted from Antara, Monday, April 29.

The Coordinator of the Development Economic Study Program at USK explained that the trend of strengthening world gold prices is currently due to uncertainty in global political and economic conditions.

This uncertainty, he said, led to an increase in demand for gold as a safe investment alternative.

"Uncertainty causes investors to switch to investing in gold compared to portfolio investments such as stocks with a higher risk. The increase in gold demand then causes gold prices to increase," he said.

In Aceh, as of Saturday 27 April 2024, the gold price reached a record high of Rp. 3.8 million per day (not including costs). The price fluctuated which a few days earlier had decreased slightly.

In addition, according to him, the current weakening of the rupiah exchange rate is an average range of Rp. 16 thousand per dollar, making gold investment more profitable than other investment options.

The reason is that the weakening of the rupiah indicates that the economy is not doing well and even causes inflation to increase, seen from imported inflation and cost push inflation.

"Golden investment is also quite profitable amid the potential inflation that will increase in the future," he said.

Chenny also revealed that if the value of the rupiah continues to weaken, the psychological impact of foreign investors will escape capital (capital outflow) from Indonesia to a more profitable country. Moreover, currently USA is still promising with the postponement of the Fed's interest rate increase.

"If the USA realizes the Fed's interest rate hike, then there is an opportunity for declining demand for stock and bond investment in the USA, investors will shift their investment in gold and or in financial markets outside the USA which is considered promising," he said.

For this reason, he advises people who want to invest in gold as a long-term savings, to do so when the price of gold has decreased in the market.

"Given that we expect a profitable difference in selling and buying in the future," said Chenny Seftaria.