Have you ever felt confused about buying gold in cash or credit? Especially in the midst of sometimes uncertain economic conditions that make you want to secure your assets by running them into gold.
However, when you want to buy gold, a dilemma often arises: is it better to buy gold in cash or credit? Well, to avoid confusion, we will thoroughly review the advantages and disadvantages of each gold purchase method. That way, you can make the most favorable choice according to your financial condition!
Buy Gold in Cash or Credit?
Pros of Buying Gold in Cash
Cheaper Price
If you buy gold in cash, you don’t need to think about interest or other additional costs. So, the price you pay is the original price of the gold without any additional financial burden. You can immediately enjoy the increase in gold prices in the future without being burdened by interest or administrative costs.
Own the gold immediately
Once you pay, the gold is immediately yours. No need to wait for the installment to be paid off to enjoy it. That way, you are also more flexible in managing your assets, for example if at any time you need emergency funds, the gold you buy can be sold immediately without problems.
No installment burden
You don’t have to worry about paying monthly obligations that can make your pocket break. Buying gold in cash means that you only spend money once, without having to think about monthly bills that can interfere with financial allocations for other needs.
Disadvantages of Buying Gold in Cash
Capital Must Be Ready
Because you have to pay in full at the beginning, you need a large enough fund. This can be a challenge for friends who want to invest in gold but don’t have enough savings.
If not well prepared, buying gold in cash can feel heavy and drain existing funds at one time. Therefore, it is important to have a well-thought-out financial strategy before deciding to buy gold for cash.
Risk of Price Fluctuation
Although gold is known as a stable investment in the long run, the price of gold still fluctuates in the short term. If you buy gold when the price is high, then the price drops after the purchase,
You may have to wait longer for the price of gold to rise again to get optimal profits. This can be a challenge for those of you who need quick funds or want to take advantage in a short time.
Pros of Buying Gold on Credit
Minimal Capital
With a credit system, you can buy gold even if you don’t have full funds. This is perfect for those of you who want to start investing in gold but don’t have enough savings. With an installment scheme, you can get gold now without having to wait for years.
More Flexible Payment
Installments can be adjusted to your financial capabilities, so you don’t have to spend a lot of money right away. You can choose a period that suits your monthly budget, so you can still invest in gold without disturbing other financial needs.
Disadvantages of Buying Gold on Credit
Total Price is More Expensive
Because there is interest or administrative costs, the price paid will be higher than buying gold in cash. If calculated in the long run, the total cost you spend can be much greater than the price of gold at the time of purchase.
Gold cannot be sold immediately
Usually, you can only really own gold after all the installments are paid off. This means that if there is a sudden need, you cannot immediately sell the gold because the ownership status is still in the hands of the credit provider.
So which is more profitable to buy gold in cash or on credit?
So, is it more profitable to buy gold in cash or on credit? The answer depends on your financial situation and investment goals.
If you have enough funds and want a long-term investment without any hassle, buying gold in cash is more profitable because there are no additional costs. If you want to start investing in gold but don’t have enough funds, buying gold on credit can be a solution, as long as you are sure you can pay the installments in full.
Buy Gold in Cash or Credit? Treasury has the solution
For those of you who are still confused about whether to buy gold in cash or on credit, Treasury has the solution! You can start buying digital gold starting from Rp5,000 Treasury offers flexible gold investment for beginners to professionals, so you can choose to buy gold from small prices to the latest prices.
No more confusion about whether to buy gold in cash or credit. Let’s start investing in digital gold at Treasury!
