What I read
In In India, More People Are Buying and Selling Gold Electronically Grow wrote that the trend in the investment in gold has been changed recently from physical gold to electronic gold in India; on the other hand, online gold purchase have been growing worldwide for many years. It is considered to be a major change in one of the investments in India since it is really difficult to change people 's behaviours. Most teenagers are pretty interested in investing in electronic gold because they do not have to use a large amount of money to buy it and it is safer rather than buying physical gold.
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My response
In Thailand, we have been trading in gold for ages; however, it is not that popular in my opinion. Many old people still buy physical gold because of theirs' behaviours. As you can see gold prices have been increasing dramatically from the past and it is one of the investments that is against inflation. Normally people buy gold for a few purposes such as buying it for wedding ceremony, investing in gold for a long term or trading.
The stock market in Thailand is much more popular than gold future. I think investing in stock is easier than gold future. Investors who invest in gold future should have background or learn about it before getting involve the future market due to the complexity of the product. Every stocks in the stock market have their own fundamental from their businesses. We can read it from the news, the company websites, the SEC website, seminars and so forth. There are many ways to learn and understand each stocks in the market. Conversely, we cannot learn the fundamental of gold since it depends on other factors not itself. For example, if there is a war, gold prices will rise. It is just a safe heaven asset. People want to buy it when there are uncertain situations in the world such as wars and politics.
From the article, I think it is interested that Indians can change their behaviours from buying physical to digital gold. It is so challenging in the beginning. It is a good idea to do this since we are in the globalisation period. We do a lot of thing in applications such as shopping, transfering money, ordering food, reading news, texting and chatting and so on.
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My question
Do you prefer investing in physical gold to digital gold?
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Reference
- Grow, G. (2018, April 1). In India, More People Are Buying and Selling Gold Electronically. VOA Retrieved from https://learningenglish.voanews.com/a/in-india-more-people-buying-and-selling-gold-electronically/4313396.html
Although I have never trade gold future before, I prefer it rather than physical gold for many reasons. Firstly, it is much more convenient. I can trade it via online application and no need to go directly to shop which can save time and save money for travel cost. In addition, it reduce risk of stolen or being lost.
ReplyDeleteOn the other hand. The older generation may buy it for other reasons which don't like us buying for investing. They may buy the gold as it is treasure or accessory. So, they prefer physical gold than electric gold.
I invest in some mutual fund but have never invested in stock or gold because they are complicate and have to study more. However, I think investment and saving is very important because our generation will have longer live span and we should prepare for our future and our retirement. Gold is an only luxury goods which should invest because its price have never decreased. My friend also invest in gold but he invest in physical gold, he invited me to invest in gold too but I think I don't want to keep physical gold with myself which have a chance to lost or be stolen. After I read your post, I have an idea to invest in this kind of investment.
ReplyDeleteNowadays, ICT has evolved tremendously, It makes people invest in trading or transaction through the Internet more because it is convenient, fast and save on operating costs. From the example of the above article, there is an investment in electronic gold instead of gold tangible. It shows the world is close to the cashless society and I think that future property calculations should be updated to reflect these electronic assets.
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