Is Gold Really Worth The Investment?

Is Gold Really Worth The Investment?

George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.

This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.

[mdwilliams]

Let’s say you invested $10, 000 into Bitcoin in 2010. You’d now have ~$205, 000, 000.

[itchyisvegeta]

I love my precious metal investments. Although mine consist of bullets and things that need bullets.

[freedomring]

Gold is not an investment. It is insurance against inflation. It is real money.

[frozenfirestix]

How many people here know anyone that retired early because they “invested” in gold.
Straight up question.
..anybody?..

[justinjohnson]

Gold stores wealth. The stock market builds wealth. They have totally different purposes.

[mcfluffier]

Precious metals are a store of value rather than an investment.

[kirk.w.mclaren]

The use of precious metals is a hedge against currency devaluation. I don't really see it as a growth investment

[jayvsrobinson]

You forgot to mention dividends reinvesting which compounds the return.

[martinlutherkingjr.]

You’re not understanding the purpose of gold in a portfolio and the past does not predict the future.

[bjgaspar]

I wonder if you're actually convincing anyone, obviously using ideal timing. So, I have some ideal timing of my own. I'm no fan of "investing" is precious metals, but for some perspective...

If you invested on 7/19/2019 (no special significance, I just like the day)...
$1000 invested in:
-S&P 500 would get you 0.7 shares (opening at $1419)
-Gold would get you 3.92 shares (opening at $255)

Today, the S&P would be worth $3525.72. Gold would be worth $7892.12

See, you don't need to be attached to a "finance guy" to manipulate numbers relative to reality

[ValentinaVaVaVoom]

This is why diversification is so important. I agree with many of the comments that have been posted, precious metals is not an investment, it is a safeguard and insurance that your money will still be worth money no matter when you retire or I'm out of the state of the economy when you do. It is not meant to be a huge investment to build wealth. It is a safety net and therefore I have both. Diversification folks. One of your Best Bets to have all your bases covered and as they say don't put all your eggs in one basket

[brianmcg]

It’s even more than that if you take into account dividends. It would be $29, 752.

[connorcourtney]

Gold preserves wealth from events that would cause the S&p 500 to be worth nothing. Both and useful for different objectives.

[jjwatt]

Gold has preserved wealth for the last 4000 years. I’ll go with the shiny metal.

[gabrielsalazar]

This is the exact opposite argument that you make about paying off your house. Gold stores wealth against inflation and is not a money making tool but instead a tool to preserve the wealth you already have.

[talyahr]

That's interesting! Though I guess gold could still be used to diversify your investments. It just wouldn't make as much money as the dollars you allocated to the S&P.

[aaronw]

Gold and silver have not kept up with inflation in the last 10 years... not exactly what I call a store of value.

[ericlencher]

Lets say you put 1000 into Microsoft in April of 1989. It was .35 cents a share. So 1k would have bought you 2857 shares. Today it would be worth 403.93 per share. That thousand dollars would be worth over 1 million dollars today.

[shelp]

buying metals is also based on the assumption that you can sell it for 100% of its value. no one buys gold or silver at full price they buy to turn it around and sell it for more.

[mitche]

Cherry picked a number to make it look bad. You could do the same thing 1971 that 1k buys you 25 oz if gold is worth over 63k. With the S&P being worth over 53k.