GOLD TO PROTECT WEALTH?

 

If we talk about wealth the first thing that comes in our mind is MONEY. Of course you are right but do you know that money value depreciate over time? Meaning, 1 ringgit today is not 1 ringgit in the near future. Why? Well, as a layperson in investment/economy, what i understand is value of money changes with goods & services supply & demand status. The changes in general price of these goods & services contribute to inflation. Inflation is what causes our money value to depreciate. The higher the inflation rate the faster the money value drop over time. The indicator used to monitor inflation in our country is consumer price index (CPI). Our current inflation rate is about 3% to 4% (will change with our country economic status).

To simplify, RM 2.00 that we have today can buy you a plate of nasi lemak but a year later the same nasi lemak will cost you RM2.10 (rounded) or more. So, how are we going to STOP our losses/leak?

More than 1000 years ago people choose gold as currency because of the intrinsic value and uses of this precious metal. Gold is a symbol of wealth and in some society it is even regarded as sacred. Even during world war II, our ancestors used gold instead of paper currency to keep their wealth. The main reason for this was that paper currency changes with the ruling government (British, Japan, British). Our ancestors worked hard to get paid. Some of them kept their money under their pillow or even buried it. What they noticed was that once japan ruled the country, british currency is no longer accepted. All their hard earned paper money is now worthless. 

Same goes during the japan then back to british colonization. All of their life savings became plain old paper. The only thing they can use throughout the colonizations as currency was gold.

What we can learn from this is do not keep all our wealth in the form of money. Diversify. Real estates, stocks & bonds and of course gold. Professional investors suggest that we keep gold at least 10-25% of our total investments. For some of us (including me) who cannot afford real estates or have scanty knowledge about stocks or bonds, gold offer a good way to start your investment. It is affordable and thanks to Public Gold, investment gold is easily and readily available.

So, please please do not disregard gold as an important tool to protect your wealth.

By,
Wan Muhd Yusri WA
PG00067660
wanyusri@gmail.com
012-8871702

Tribute to SHISHA (My Beloved Cat) : Jan 2012 to 31 October 2016