If you have money that you set aside for daily expenses, urgent purposes, children’s education, cost of pilgrimage, pension funds, etc., don’t put all of your money in one basket or only in saving account, deposits, current account. We have to know that the future value of our money will not be equal to the present value. The value of our money tends to decrease due to fluctuation of inflation rate per year. Invest your money in several forms, not only cash, such as gold, sukuk, property, and so on so forth. However cash is still required, enough for your daily and emergency needs.
This time, let say we want to invest our money in gold. When we look at gold prices in the short term, it fluctuates– up and down. However if we examine in the long-term, average gold prices tend to rise. For example, price of gold per gram in U.S. based on graphic data from goldprice.org in 2008 approximately was US$ 25/gram, 2010 US$36/gram, and in 2012 approximately was US$ 51/gram.
To keep our assets protected, not eroded by inflation, investment in gold (especially gold bullion) is worth. If you plan to do Qurban every year, or performing hajj in the near future, or send your child to university in 3 years…. spend in gold is also a profitable investment. With you invest in gold, you will realize that Haj cost decreases instead of increases!
The following example I took from several sources of Hajj agents in USA. In 2008, cost of economy class pilgrimage from USA was around US$ 4,400, or equivalent to 176 grams of gold at a price of US$25/gram. 2009 if we assume cost of Hajj was the same (US $ 4,400), it was equivalent to 157 grams of gold. In 2010 cost of pilgrimage was around US$ 5250 or equivalent to 146 grams of gold. During 2011-2012 costs of Hajj economy class from USA has not changed much, so we assume approximately US$ 5,250 and it was equivalent to 119 grams and 103 grams of gold in 2011 and 2012, respectively. It means annual hajj cost with gold is gradually decline! This is just an example of USA where its inflation actually is relatively stable at around 2-3 %. In Indonesia hajj cost 2007 was approximately US$3500 or equal to 150 grams of gold. In 2010, the hajj cost was US$3500 or equal to 95 grams of gold!
Dear Muslimah….if you’ve decided to invest your money in gold, the following tips may be useful :
1. Buy gold certified specifically for gold bullion, as well as letter/purchase receipt for jewelry purchases. This is to avoid the risk of buying fake gold and ease once you want to sell your gold.
2. If you prefer to invest in jewelery choose plain or not very varied, not too many stones / gems, and select a simple design. Keep in mind that if you buy jewelry you also have to pay cost of design.
3. Choose yellow gold, since the price is more stable compare to white gold. If you prefer white gold jewelery, use yellow gold with white -coated, so the original gold remains yellow gold.
4. Do not forget to pay zakat of jewelry every year when it reaches nisab.
