Do you want to make gold as an investment tool? So you need to know in advance what a gold buyback is. And how will the repurchase price affect the price of precious metals and your profits later? Read more below.
What is buy gold?
Gold buyback is an activity to buy back precious metals by gold producers or buying and selling institutions. The transaction is known as a repo. Similarly, if you pledge your gold to a bank or pawnshop.
This transaction is important for you to know as an investor. This is because the prices listed in the buyback column are what you get if you sell this precious metal to a pawnshop, Antam boutique, or a gold shop. These repo prices can change daily and are generally lower than the price. that you pay to the store when you buy gold (sale price)
For example, in the sales price column The price of gold is displayed at IDR 900,000 per gram. The displayed price could be Rp.870,000, Rp.880,000 or whatever. But that’s clearly below the selling price.
So is it dangerous to invest in precious metals for this reason? Oh no, gold investments will still be profitable if you can come up with the right strategy. So the total buyback price you get will be more than the selling price you spent.
Gold repurchase price calculation simulation
For example, Investor A bought 5 grams of 24 karat gold jewelry at a price of 4,500,000 Indonesian Rupiahs, or 900,000 Indonesian Rupiahs per gram. a few months later The investor sells his assets back to the store. At that time, the repurchase price of this precious metal is IDR 890,000 per gram. As a result, the investor will receive IDR 4,450,000 instead of IDR 4,500,000, meaning the investor loses up to IDR. 50,000
Second example, Investor B bought 5 grams of gold bullion in 2017 when the price of the precious metal was 730,000 Indonesian Rupiah per gram. Therefore, Investor B has to issue a selling price of IDR 3,650,000. out of necessity The investor then sells his assets in 2022, when the price of this precious metal reaches IDR 830,000 per gram, meaning he will receive IDR 4,150,000, or roughly IDR 600,000 in profit.
Difference Between Gold Treasury and Stocks
besides gold The term repurchase is also often used to invest in stocks. by name A share buyback is a securities buyback activity as evidence of the contribution of funds by the issuer of the securities issuing the securities.
buy back shares This is done by the company for a number of reasons such as maintaining the liquidity level of the stock. Predict the falling share price. Financial restructuring with the possibility that the company will be delisted from the stock exchange and restored. The company is closed.
Unlike gold buybacks, in stocks there is no fixed repurchase price and will continue to be updated. The company provides a certain amount of budget to purchase only outstanding shares on the exchange. Usually, this purchase transaction is carried out at the market price.
Therefore, the share repurchase will indirectly benefit investors. The company’s share repurchase also has the potential to raise the price of the instrument. in order to be able to bring profits from investments to investors
How to invest in gold without losing money
1. Pay attention to the location.
The first way to invest in gold in order not to lose money is to make sure you buy the precious metal in a legitimate place such as the best gold shops, banks, pawnshops or Antam boutiques and their official website. This is important So you won’t get confused with buying brass.
2. Pay attention to how to buy.
Today, there are many ways you can invest in gold, from buying gold bars and Antam jewelry to saving money. digital gold Although it is much easier as it can be bought for only Rp 10,000, the downside of buying gold with savings is that you have to be careful with the selling price of this precious metal. Because the money will be exchanged for gold of the same value.
For example, you buy gold with double savings. The first time you deposit up to IDR 450,000 because at that time the gold selling price was Rp 900,000 per gram, you would get 0.5 grams of gold. One more month you deposit your savings. with original currency This time the price of gold per gram rose to 910,000. As a result, you didn’t get 1 gram of gold as you thought, but only 0.99 grams.
gold investment It should be purchased as a bundle or paid outright. However, if you object to this method, You can buy it by saving with banknotes. You need to know and record all the selling prices you need to buy gold.
3. Pay attention to the repurchase price and the effect.
as written above The repurchase price of this precious metal changes daily. So you can determine when gold is profitable. You will need to update these price changes. Fortunately, you can now access the change in selling prices and gold buybacks on the official pawn shop page and the official Antam website.
In addition to updating the price You can also consider various factors. That may affect the gold price as well. This is because both the sale and repurchase price of this precious metal in Indonesia are still heavily influenced by the world gold price and the dollar’s exchange rate against other currencies.
4. Be sure to pay attention to the additional fees.
Gold can be a safe investment tool. But investing in precious metals also comes at an additional cost. It depends on the investment method you make. For example, investing in digital gold as savings has gold deposit fees. Account Creation and Closing gold bullion investment (in large quantities) additional charges may apply in the form of safes and delivery charges. (if purchased online), etc.
The size of this additional cost, of course, you need to pay attention to. As these additional costs more or less will definitely reduce the potential profit you will receive.
In addition to the above four Also check the condition of the gold bar or jewelry purchased to be in good condition and have a certificate when selling. Due to the deteriorating physical condition of gold and the absence of a certificate of sale and purchase of gold will lower the buyback price you receive.