PROS AND CONS OF THE GOLD RUSH
The gold craze is likely to continue as long as the gold price rises and the global economy remains uncertain, economists said.
“If the global economy remains uncertain, gold prices will remain high,” said economist Fithra.
Veronica Kaihatu, a psychology lecturer at Pembangunan Jaya University in South Tangerang, said gold will remain a favourite metal among Indonesians due to cultural perceptions but the gold craze will likely decrease when people feel safe.
“So this depends on social, political and economic conditions.”
Social researcher Devie from the University of Indonesia said that the gold madness provides a form of financial security.
Should one decide to buy gold jewellery, especially if one is unable to purchase bullion, then it is also good since it can be worn.
However, she said people should know where to save the gold because it is not safe in Indonesian homes, which are prone to disasters such as flooding and theft.
“Do you have a safe deposit box at the bank? If yes, put it there, not at home,” she said.
Financial planner Mike Rini from financial consultant Mitra Rencana Edukasi said all investment forms have their risks, including gold.
She said gold could be a good investment tool if the price is not volatile.
“Even though in the long term gold price tends to go up, it could also be volatile, going up and down between days.
“So to me it is good when it is meant for the long term,” said Mike.
“It is not meant to generate passive regular income.”
She added that people should diversify their assets into five different types, such as stocks, bonds, mutual funds, savings accounts, deposits, and possibly even properties and businesses.
They should also conduct research before buying gold, rather than just buying it based on instinct.
https://www.channelnewsasia.com/asia/soaring-prices-overnight-queues-economic-uncertainty-and-us-tariffs-fuel-indonesias-gold-fever-5096191
