Should You Invest In Gold? #investing #money #gold

[caseybills]

Buying silver and gold is easy, but it is renowned for stability during economic hard times like this. The main problem is investing in stocks, dividends and even cryptocurrencies to grow your portfolio.... I’ve been trying to grow my portfolio of $190K for some time now, my major challenge is not knowing the best entry and exit strategies ... I would greatly appreciate any suggestions

[ElArgelinoBasado]

humans really said ''shiny'' and chose gold to be one of the greatest exchange methods of all time

[hawks]

When I had trouble saving money I would buy gold. It gave me the dopamine normal shopping did but I didn't loose my money

[ChrisOReilly]

What they fail to mention is that in a recession, gold withstands a lot better than any index fund...

[XxChuyoxX]

Gold isn't how you grow your wealth, it's the tool you use to preserve it. Having it as a small percentage of your net worth is never a bad idea. It will outlive the US stock market but will obviously underperform it in the mean time.

[Gonbatfire]

Gold has no counterparty risk.

It's not about making money, it's about safely storing it.

[marc-andreservant]

The advantage of gold is that it has less of a correlation with the stock market than a 100% stock portfolio, so a mixture of gold, stocks and bonds weighed by their relative volatility will have the least possible variance over the short term. In the long term however, stocks will almost always perform better (it doesn't matter if there's a Great Recession tomorrow when you plan on not selling for 30 years).

[jokoperez]

Don't forget electronics!

However, I doubt most investors even know we need gold for electronics anyway.

[TTTT]

Thanks! Dealers are constantly pumping fear and charge insane premiums especially on silver .

[joeyoest]

Gold has three things going for it that they didn’t (fully) address here:
1) it is negatively correlated to the market in general - as a safe haven, it moves opposite the market so if you need to cash out in a down market, you can sell overvalued gold instead of undervalued stocks.
2) gold is ‘hard money’. Humanity has recognized good as currency for millennia, and there’s no sign of that going away. But the Fed can’t quantitative-ease gold! (In other words, it can be an inflation hedge.) Note that many folks are happy to invest in investment-grade securities for companies that provide a product that has little to no tangible value other than the fact that people like it.
3) gold is portable. If someone is in a situation where they may have to flee and take very little with them, gold is very value dense - 5 1-ounce coins fits easily in your pocket and is worth about $10k
But, gold should be a part of a portfolio that is meant to serve a very specific purpose, not a main investment. Don’t buy gold just because you saw a video from some ‘stacker’.

[laercioborges-zdol]

Life comes at you fast, from bank collapses to rising conflicts and the looming 2024 recession. Ditched cash for gold and crypto; my portfolio's thriving.

[fuecOHKO]

Actually there is a significant advantage to gold. It does rise and fall in value, but we know for sure that that value WILL go up eventually unlike stocks which could lose all value if things go horribly wrong.

[cryptocovered]

Gold is NOT an investment, but a store of wealth to protect purchasing power; aka a hedge. If you don’t understand that, you shouldn’t own it.

[randomplugs]

The only reason to have gold is solely if you have a concern of your country, and it's currency, is going to collapse, leaving your savings worthless. Since gold has been a universal storage of value for millennia, is stays consistent. Gold isn't really an investment to make money, it's an "all hell has broken loose" backup.

[ryanpmcguire]

The value gold offers is the fact that it is

1) easy to distinguish
2) rare, but not too rare
3)

Basically the perfect currency

[VicodinElmo]

I have physical gold but its only really for the sake of portfolio diversity. I also have a little bit of silver but I’d say it’s probably less than 5% of my total “net worth” (hate that term but I guess it’s correct). I definitely wouldn’t rely on it but +300% increase in ≈30 years is better than no increase in ≈30 years! There is something psychologically reassuring about having a physical asset too. I know a house counts but there’s something deeply unsatisfying about a house as an asset for me because a house also comes with a lot of costs 😂

[blakelee]

Gold will always be used in electronics so it should never lose value because there is no better alternative in some cases

[DallasMay]

The reason why humans around the world have been attracted to the stuff is because of it's chemistry, namely that it basically doesn't ever react with anything.

If you were a medieval guy walking through a stream bed and you found an old roman sword with gold inlay, you would see the entire sword was rusted nearly to dust, but the gold would be just as beautiful as the day it was forged. It's easy to see why that medieval guy would have thought it was special.

[safaiaryu]

Please do not dive into a pile of gold Scrooge McDuck style. You'll just injure yourself. 😂

[PeakSupreme]

The value that gold brings is the uncorrelated standard deviation. It is good for diversification and if you use the standard deviation right with rebalancing, you can do better in the long run. The weakness is that it has costs to own it on an exchange and that it is over collateralized and likely has risk with Tungsten being the same weight and having that as a shell. It is why there were some maliciously aligned people saying we should get back to the gold standard because they had a plan to do just that when they bought it from them.