Gold And Silver Case Study

Gold and silver can be purchase through gold retailers who maintains huge gold bulks or form the Banks. Purchasing from retailers are easy as pie. There are plenty of gold and silver retailers across the island. To invest go to a retailer and get into an agreement with the retailer and finally buy the amount of gold or silver needed for the investment. Following are some of the leading retailers in Sri Lanka

• Devi Jewelers

• Raja Jewelers

• Auther de Silva Jewelers

• Colombo Jewelers

• Swarana Mahal Jewelers

• Vogue Jewelers.

Gold selling is not done at very Bank. It’s done only at a limited number of banks under a limited brunches. One of the leading bank on gold retailing is BOC, and they their service is only provided at their head office.

• Investment Portfolios and wealth are protected in economic crises. o The value of paper money will decrease in the times of economic crisis but it won’t effect on gold and silver savings.

• High market Liquidity o Gold and silver can be sold out very quickly without any capital lose. o Bank and other financial organizations are providing mortgages services on gold and silver. So a investor can get those services very quickly at a low cost without losing the assets.

DISADVANTAGES

• Gold storing must be done at secure place. To buy and to maintain those storing facilities additional is added.

• To transporting gold and silver additional security is needed and it may cost a lot.

• Gold and silver trading services are provided by a limited number of retailer and banks. CURRENT PRICES

The following table shows the prices Changes of gold per one troy ounce starting from 1st December 2016.

Gold Price AS At One Troy Ounce

06.04.2017 LKR 190306.512

31.03.2017 LKR 188277.0777

28.02.2017 LKR 189526.8451

31.01.2017 LKR 180208.8464

30.12.2016 LKR 173924.541

01.12.2016 LKR

It can’t take lightly when considering where to put your money because as an investor, their ultimate objective is to earn a gain in future through what they sacrifices. In investment return there is an uncertainty. That’s due to the risk and the inflation. Because of that choosing the correct investment option is essential. As an investor he can invest in a single investment option or in a portfolio investment. When choosing an investment options the investor needs to consider mainly the following factors.

 Level of risk

 Return

 Time frame

Apart from that when an investor taking an investment decision,

• He should not be emotional when the investment does. He should study the investment strategies and use accordingly.

• He should not invest all of his money in one investment option, but go for diversified portfolio investment. This will reduce the risk and the probability to lose all money and return when one failures.

• In order to get a good, profitable return the investor study the investment options thoroughly and develop good investment portfolio.

• As a rational investor, it needs to consider both technical analysis and fundamental