Gold is one of the precious metals that has been known since ancient times and has a very high value. In various cultures, gold is a symbol of wealth, luxury, and prosperity. In fact, in many ancient civilizations, gold was used as a medium of exchange and a symbol of power.

In modern times, gold is one of the most popular and stable forms of investment, and it continues to be used in the production of jewelry, art objects, and various industrial products. In addition to its use in everyday life, gold also plays a significant role in the financial and economic worlds.

Gold is one of the most chosen investment instruments by individuals and institutions to protect their wealth from inflation and market uncertainty. In this article, you will learn more about the definition of gold, its types, and the benefits of gold in investment.

Types of Gold

1. Physical Gold

Physical gold is the most traditional form of gold and is often used by investors. Physical gold can be in the form of gold bars or coins, whose value is based on their weight and purity. As an investment, physical gold is known for its stability in protecting wealth, especially in the face of inflation and market uncertainty.

The main advantage of physical gold is its tangible nature, meaning you can hold it and store it in a secure location, such as a safe or deposit box. The purity of gold is crucial in determining the resale value and investment potential of physical gold. Pure gold typically has a purity of 24 karats, meaning it contains 99.9% gold.

This 24-karat gold is not mixed with other metals, so it has the highest quality. However, 24-karat gold is also very soft and easily scratched, so it is often mixed with other metals such as copper or silver to increase its strength and durability.

In addition to 24-karat gold, there are also lower-karat gold, such as 22-karat gold, which contains 91.7% gold, and 18-karat gold, which contains 75% gold. Although 22-karat and 18-karat gold have lower gold content, both are more durable and are often used in jewelry making.

As an investment, 24-karat gold tends to be more valuable due to its higher purity. However, 22-karat and 18-karat gold are also attractive because they are easier to process and more durable. To protect your investment, physical gold should be stored in a secure location, such as a safe or a gold storage service, so you need to consider storage costs and insurance.

2. Jewelry Gold

Jewelry gold is the most common type of gold used by people for various purposes, especially for aesthetic purposes and as a symbol of social status. Jewelry gold can take the form of rings, necklaces, bracelets, or earrings, which are made by combining gold with other metals such as copper or silver to provide strength and a more attractive appearance.

Jewelry gold has varying degrees of purity, ranging from 18-karat gold to 22-karat gold. Although jewelry gold is often chosen for its artistic value, as an investment, jewelry gold tends to have a higher price compared to gold bars or coins due to design and manufacturing costs.

Therefore, while you can benefit from the use of gold jewelry and its price appreciation, the profit margin from investing in gold jewelry is typically smaller than that of gold bars. You not only have an investment in precious metals but can also wear or display it as beautiful jewelry.

3. Gold Coins

Gold coins are another form of physical gold that is often used as an investment tool. Gold coins, such as the Krugerrand coin from South Africa or the American Gold Eagle from the United States, have a value based on their weight and purity. Gold coins are often chosen by investors because they are easy to buy and sell, and are relatively smaller and easier to store than large gold bars.

The advantages of investing in gold coins are their high liquidity and ease of buying and selling. Some coins even have a higher collectible value if they are unique or limited edition. However, you need to consider additional costs, as the production and distribution costs of coins can be higher than those of regular gold bars.

In addition to popular coins like the Krugerrand and American Gold Eagle, you can also find dinar coins made of gold. Dinar coins, often associated with Islamic tradition, have high historical and spiritual value. Dinar coins are typically used as a medium of exchange in some countries or communities that value the historical and symbolic significance of the coins.

The Treasury also has several collections of gold coins that are suitable as collectibles or gifts. Treasury gold coins have unique designs, such as special editions like the Lunar Dragon edition coin, the Eid al-Fitr edition coin, and the Nusantara coin, which is decorated with various traditional Indonesian ornaments.

Like other physical gold, the investment value of gold coins is also influenced by global gold market prices. Therefore, investing in gold coins can also provide protection against inflation and economic uncertainty.

Read Also: 6 Ways to Learn About Gold Investment for the Future – Treasury

4. Digital Gold

Digital gold is the latest form of gold investment that allows you to buy and store gold in electronic form through an online platform. The main advantage of digital gold is the ease of transactions that can be done anytime and anywhere without having to handle physical gold directly.

So you don’t have to worry about storage or insurance costs because the gold is stored in a secure digital system. Digital gold also allows you to invest in smaller amounts without having to purchase physical gold in large quantities.

The high liquidity of digital gold means you can sell it anytime, and transactions can be completed quickly. Therefore, digital gold is a highly practical and profitable investment option for those seeking new ways to invest in gold.

The various benefits of digital gold mentioned above can be accessed through the Treasury digital gold investment app. Treasury is the first digital gold investment app licensed by BAPPEBTI, ensuring its security. You can start investing in digital gold starting from IDR 5,000.

Benefits of Gold as an Investment

1. Protection Against Inflation

Gold is a highly valued investment due to its ability to withstand the effects of inflation. When the value of currency declines due to inflation, the price of gold tends to rise. This makes gold a safe haven for investors who want to protect the value of their wealth from uncertain economic conditions.

Many investors choose gold as a hedge against market uncertainty. Gold is not tied to any particular currency or economic policy, making it more stable than other assets such as stocks or bonds. In situations where inflation or a global economic crisis strikes, gold can maintain its value, and often even increase in value.

2. Potential for Value Growth

Over time, the price of gold tends to increase. Investing in gold can provide significant returns if the price of gold continues to rise. Gold is a durable and highly stable asset, making it a potential source of long-term value growth.

In fact, during periods of uncertainty or global crisis, gold prices often show an upward trend, making it a highly profitable choice for long-term investors.

Another advantage of investing in gold is its flexibility. You can purchase gold in various forms, both physical (bars or coins) and digital.

3. Portfolio Diversification

Gold is an ideal investment instrument for portfolio diversification, especially if you already have other investments such as stocks or property. The value of gold is not always directly linked to stock market movements, meaning that gold prices tend to be unaffected by stock market fluctuations.

Additionally, gold has high liquidity. You can easily buy or sell gold anytime as needed. Diversifying with gold not only protects the value of your investment but also provides an opportunity to gain greater profits from rising gold prices.

Gold is a precious metal that plays many important roles in life, from a symbol of luxury and jewelry material to a profitable investment tool. The rare, stable, and durable nature of gold makes it a safe investment choice amid economic uncertainty.

So what are you waiting for? Start investing in digital gold on the Treasury app to secure the value of your assets and prepare for a more stable financial future!