Cash is trash, I want to buy gold!

Jakarta, Armfalcon.com – Businessman and author of the book Rich Dad Poor Dad, Robert Kiyosaki, again uploads tweets and invites many people to buy gold. This time, he also discussed the prediction of a fall in world gold prices.

“GOLD will be DESTROYED. Steve Van Metre, who I respect, predicts that the price of gold will fall to US$ 1,000. He said that the market is tired of waiting for the price of gold to rise. If the price of gold falls to US$ 1,000, I will buy it in greater quantities. I’m an investor, not a trader. For me, gold, silver & bitcoin are real money. Cash is trash!,” Kiyosaki said on his Twitter account (24/4).

As is well known, Antam’s gold price strengthened after Eid to IDR 1,062,000 per gram while the buyback price was IDR 956,000.

The increase in Antam’s gold follows the increase in world gold prices which are priced at US$ 2,000.99 per troy ounce at the opening of trading on Tuesday, April 26, 2023.

Hearing Kiyosaki’s words while watching the rising price of gold, is now the right time to buy? Or even vice versa?

If calculated over a period of 10 years, the annual increase in gold prices is 7.3% (CAGR). Yields of 7.3% per year are not much different from yields on state bonds.

The only difference is that the yield on gold is not a fixed income and is not guaranteed, and there are price differences buy back and the purchase price is quite high. That is what makes gold more suitable for long-term investment.

Regardless of buying now or later when the price drops, you really don’t need to think about it too far because your investment horizon is quite long.

But no doubt, it can certainly affect the average value of gold that you have.

The steps that can be taken are to buy with less capital when the price goes up and buy it with more capital when the price goes down.

When you make large purchases at low prices, this is tantamount to averaging down in stock or mutual fund investments.

By averaging down, the average value of your gold will decrease and when the price of gold rises, the profit you will get will be greater. This strategy is also appropriate to use to reduce the difference between the purchase price and the buy back of your gold

[Gambas:Video CNBC]

(aak/aak)