Dinar Investment: How, Tips, Advantages And Disadvantages

In addition to gold, dinar investment is also considered quite profitable. Are you interested in investing your money to this investment? Let’s read on how to invest in dinar, tips and advantages and disadvantages of this kind of investment.

Dinar investment is one of the profitable instruments, with prices that follow the gold exchange rate on the international market. The dinar itself is a 22-carat gold-based coin which generally weighs around 3-4.25 grams.

This coin has also been recognized by Islam and the international organization World Islamic Trade Organization (WITO). For those of you who are interested, let’s peel thoroughly the advantages, disadvantages and tips for success in investing the following dinars.

What is Dinar Investment?

Dinar is a gold coin that served as a medium of exchange in ancient times. Apart from dinars, there are also dirhams made of silver. Not many countries use it as a transaction tool, but not a few people return to choose dinar and dirham investments because of their high value.

This investment has many types, some of which are Iraqi dinar investments, Antam gold dinars, Kuwaiti dinars, and so on. One of the reasons the dinar is chosen is because its value tends to be stable.

How to Invest In Dinar

Dinar coin investment is no less promising than gold bullion because its value is the same as the gold exchange rate and has a beautiful design. However, before doing so, you need to pay attention to some of the tips below.

  1. Determine Your Investment Goals Before investing, make sure you have determined the goals. For example, for retirement savings, children’s school fees, or family recreation costs. Having a goal will strengthen your consistency in investing.
  2. Know the Legal Rules You need to know that investments in the form of dinars are not allowed for transactions. This is regulated in article 2 paragraph 1 and article 21 paragraph 1 of the Currency Law, that the legal medium of exchange in Indonesia is only Rupiah.
  3. Use Unused Money Make sure the money you use to buy dinars is “idle” money or leftover money after meeting expenses and emergency fund savings. This is to anticipate losses or sudden needs.
  4. Buy Dinars from Trusted Companies When buying dinars, make sure they are produced by well-known companies such as PT Antam, UBS, and so on. The reason is, these companies include certificates on the dinars they produce, so that their authenticity is guaranteed.
  5. Start with a Small Value If you are a novice investor, use a little capital first to study fluctuations in dinar prices. Once you’re sure, you can increase the value little by little.
  6. Join the Dinar Investor Community Joining fellow dinar investors will help you monitor price fluctuations, add insight, and share important information.

Tips For Successful In Dinar Investment

After doing the methods above, here are some tips that you can apply to make your investment run smoothly.

  1. Have Long-Term Investment Intentions
    Although the dinar price fluctuations are almost as stable as gold, the profits obtained are usually not as large as stocks. Therefore, in order to get a profit, this investment should be aimed at the long term.
  2. Have a Certified Dinar Dinar is included in the precious metal, so it is better if the dinar you invest already has a certificate. In addition to guaranteeing its authenticity, certificates also increase the price of the dinar.
  3. Focus on Making the Dinar an Investment, Not a Medium of Exchange Although the dinar can be used as a medium of exchange, this rule does not apply in Indonesia. Therefore, focus your dinar on investing, not as a medium of exchange in transactions.
  4. Don’t Forget Zakat on Dinar Ownership Dinar ownership is the same as gold, therefore, you are obliged to pay zakat. Nisab dinar is 20 coins or 85 grams, which means for every 85 grams of dinar, you have to pay zakat of 2.5% after 1 year of ownership.
  5. Consistent In investing dinars, start with a small value at an affordable price. But keep the consistency in living it and increase its value if you have additional income.

Advantages And Disadvantages Of Dinar Investment

As with other types of investment, Dinar also has advantages and disadvantages. The following are the advantages and disadvantages of investing in dinars.

Advantages

Through investing in dinars, there are many advantages that you can enjoy, which are as follows.

  1. It has a unique design so it is suitable for collection.
  2. It has a standard value, which is that each piece is equivalent to 22 carat gold and weighs 4.25 grams.
  3. It is easy to get because many are sold by agents, Islamic banks, and PT ANTAM.
  4. Easy to share without having to sell the whole thing. In contrast to gold bullion, which must be sold entirely, even though you only need half of its value.
  5. There is no deduction of selling value in the form of manufacturing costs when the dinars are resold.
  6. The selling price of the dinar among dinar and dirham investors tends to be high.
  7. The difference in buyback dinars is not much different from gold bullion.
  8. Can be traded globally because some countries still use the dinar and dirham as a medium of exchange, for example Kuwait, Bahrain, Iraq, and so on.

Disavantages

In addition to looking at the advantages, before investing, you also need to look at the disadvantages.

  1. It needs a safe storage place so it doesn’t get lost or you can store it at a pawnshop.
  2. It is classified as a long-term investment whose benefits will only be felt after 5-10 years later.
  3. Must pay Value Added Tax (VAT) of 10% because the dinar is included in the category of jewelry.
  4. The supply of dinars is influenced by world gold production, global conditions, and the exchange rate of the rupiah against the US dollar.
  5. The selling price of dinars in gold shops is only for ordinary gold without taking into account designs and motifs.

That’s an explanation of how, tips, advantages and disadvantages of investing in dinars. Before starting to invest, it’s a good idea to pay attention to each of the tips above to get multiple benefits. Good luck!


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