Thursday, November 22, 2012

Some kind of investment you can do (Second Part)

In previous articles I have given anything just investing so that you can choose according to your ability. If the article only discusses the savings bank deposits, stocks, and mutual funds. So on this second article I will discuss about the bonds, gold, property and goods. This article is certainly not the last two, there is one title again on the advantages and disadvantages of existing investments.
Bond
  • Profit
    • Bond interest rate is consistent, in the sense of not affected the market price of bonds
    • Bondholders can expect revenue to be received, because the contract has been determined for certain rights to be received by the bondholders
    • Investment bonds can also protect bondholders from the risk of the possibility of inflation
    • Bonds can be used as collateral for bank loans to buy instruments and other assets
  • Weakness
    • Financial market interest rates have a negative correlation of bond prices, bond prices rise when it is certain that interest rates will go down, and vice versa
    • Low levels of bond liquidity. This is because the bond price movements, especially if bond prices decline
    • The risk of withdrawal. If the bond contract no withdrawal requirements bonds, corporate bonds can withdraw before maturity by paying a premium
    • Risk of fraud. If the issuer company has liquidity problems and were unable to pay off its obligations or go bankrupt, the bondholders will suffer a loss
Gold Bars
  • Profit
    • Gold prices tend to be stable and up
    • Wherever the sale, the value of gold will be the same
    • Gold is available from the weight of one gram to one kilogram, so that small investors can also invest in gold
  • Weakness
    • Difficult in storage because if not careful can easily be stolen
Property
  • Profit
    • Property prices will typically rise as inflation
  • Weakness
    • The property is very dependent on the purchasing power
    • Investors require large funds to invest in property
Collectibles
  • Profit
    • Collectibles will not go down when the economic crisis
    • Its value depends on the age, more and more expensive
  • Weakness
    • Not easy to find a buyer because of its nature as a special item
    • People buy a collector's item as fond of the goods, not because of its benefits

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