Gold investment has become the choice of many people because it is considered a safe haven asset. The price of gold is relatively more stable and continues to increase from year to year. This makes gold a popular investment among the public.

However, many investors make common mistakes in gold investment, either due to lack of knowledge or inappropriate strategies. These mistakes can lead to financial losses and reduce the potential returns from gold investments.

These mistakes can result in reduced profits or even financial losses. Therefore, before starting to invest in gold, it is important for you to understand what are the common mistakes in gold investment that often occur in order to avoid them. 

Let’s look at the following 4 common mistakes in gold investment so that your investment is safer and more profitable!

Not understanding the Purpose of Investing

The next common mistake in investing in gold is not understanding what investing is. Many pals misunderstand investing in gold by making it a short-term investment. Whereas the value of gold tends to increase in the long run.

It is not uncommon for Treasury buddies to buy gold when the price rises and sell it when the price falls in a panic, resulting in losses. In addition, every time you make a gold buying and selling transaction, investors have to bear additional costs such as price spreads (the difference between buying and selling prices), taxes, or administrative fees, which can reduce potential profits.

Also Read: 5 or 10 Years, How Long Can Gold Investment Profit?

Not Paying Attention to Gold Prices When Buying and Selling

One of the common mistakes gold investors make is not paying attention to price trends when buying or selling. Many people buy gold without considering whether the price is high or low, so they risk buying at peak prices and selling when the price drops. 

To avoid this mistake, it is important for investors to monitor gold prices regularly through the Treasury app. By understanding the price movement patterns, you can determine the right time to buy when the price is low, and sell when the price rises for maximum profit.

No Emergency Fund for Investment

One of the common mistakes in gold investment is not setting up an emergency fund before starting the investment. Many people are too eager to buy gold without considering future urgent financial needs. As a result, when faced with emergency situations such as job loss, medical expenses, or other urgent needs, they are forced to sell gold at unfavorable prices

Ideally, gold investment is done in the long term so that its value can increase maximally. However, if you don’t have an emergency fund, you may be forced to sell your gold at a low price, which can lead to losses.

Not Checking the Authenticity of Gold

One of the common mistakes in gold investment that is often made to novice investors is not ensuring the authenticity of gold before buying it. Maybe, you are tempted by the price that is cheaper than the price of gold should be. This often happens if you buy gold from sources with unclear backgrounds.

The authenticity of gold is very important because fake gold has a lower grade and a much lower selling value. Especially if what you buy is fake gold which is just a metal coated with gold so that it resembles gold. By buying the wrong gold, of course, it will give you a loss.

To avoid common mistakes in gold investment, you can make purchases at gold shops or trusted online gold buying and selling service providers. Make sure you also know how to check the authenticity of the gold you buy. If through an online platform such as Treasury, the digital gold you buy is guaranteed authenticity so you don’t need to worry anymore.

So now you know the common mistakes in investing in gold? If you want to invest in gold and feel that having to check the authenticity of gold and store gold makes it complicated, that’s a sign that you should invest in digital gold at Treasury.

Buying digital gold at Treasury is guaranteed safe and reliable because it has an official license from BAPPEBTI. Let’s start investing in digital gold now and achieve long-term profits more easily with Treasury!