Common Sense With Money

Wednesday, June 30, 2010

The Inflation Killer

Not a single country in the world are not affected by the financial disease known as inflation. Moreover, if the country is still classified as developing countries. So what is inflation acctually ...According to Wikipedia, in economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, annual inflation is also an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.







Because inflation is something we can not avoid, then we must confront it right? In my opinion, the only way to deal with inflation is how to divert our funds into the investment world. There are many investment instruments and analysis we can do very easily and safely. But I only recommend two for your investment instruments because of its liquid and secure:

  1. Gold. Its very suitable for those who are not too aggressive. Pure gold is a relatively safe form of investment because its price tends to rise although slowly (within months). Please note the gold price movement over the past five years in http://www.goldprice.org/spot-gold.html. The development of the gold price is very promising for investors in this sector.  
  2. Stock market. Suitable for you who are aggressive because of young age or other causes. Forms are considered more aggressive investments because the stock price changes tend to be more rapidly than gold. Matches to be played in minutes, hours, days or months. Stock market investment is a category of high risk high return, so you have to be more careful for these instruments. The development of the stock price is also very promising. As the world's benchmark stock, look at the center of the world stock market in New York America.... Dow Jones. Quite promising right?
Investment world is something which is totally unpredictable with certainty, although it can be predicted through various approaches of knowledge. Something is definitely in the investment, is... he can "kill the inflation" that erode the value of your money:) so what are you waiting for.... happy invest :)

warm regards ,
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