Is Gold A Good Investment?

Gold is one of the largest financial assets in the world with an average daily trading volume of $183 billion, and its value has seen explosive growth in recent years.

At the start of 2000, gold was priced at just $460 per ounce when adjusted for inflation. By August 2021, that number had ballooned to roughly $1,815 per ounce.

But not all investors are in love with gold. Warren Buffett has spoken out numerous times on his doubts, calling it an asset with “no utility.”

“It doesn’t produce anything and that’s why from a long-term perspective, it’s a hard asset to invest in,” Odyssey Capital Advisors chief investment officer Jason Snipe said. “It’s prudent portfolio management to have maybe a small allocation there but this is not an asset that you want to be heavily entrenched into if you’re looking for long-term yield.”

Since 2011, the S&P 500 has returned more than 16% on an annualized basis. The annualized return for the 10-year Treasury note sat at just over 2% in that time period. Gold, meanwhile, has fallen slightly over the past 10 years.

“Early on, you see strong performance, strong return or yield from commodities such as gold. Generally, as we move into a different cycle, gold is not as great a performer as we move into a normalized environment,” Snipe said.

Whether gold is an effective hedge against market volatility is also widely debated among experts.

“Gold is not necessarily a perfect hedge against inflation but it can be a strategic hedge against inflation,” according to Suki Cooper, executive director of precious metals research at Standard Chartered Bank.

“Various studies have shown us that if gold is held for 12 to 18 months before inflation takes higher and then it’s held for an additional 12 to 18 months while inflation moves higher, it can be a good inflation hedge,” Cooper said. “But if it’s just bought for a short period, let’s say a month, it may not prove to be an effective inflation hedge.”

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Is Gold A Good Investment?

[BrewerVera]

As an lnvestment enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.

[JimRex-sfbt]

Hey folks, have you heard about Desiree Ruth Hoffman?

[ShirlPigram]

The dollar is literally being destroyed / debased / devalued. The best performing asset in the history of the world is BITCOIN. It is by far the best store of value. 10 years from now you’ll be thankful for every dollar you put into it.. My two cents.

[barttfisher]

At the beginning of the year, I have continued to purchase a few equities, but nothing significant. Why am I being so unkind to this? The fact that others in my field make six figures each piece, nevertheless, motivates me to want to be the first member of my polygamous family to earn a million dollars. I am fully aware of the expense of working more to get more money.

[WestonScally]

I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1, 000, 000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?

[HugoBergmann-lund]

Given the current market uncertainty, it seems wise to consider investing in gold or a gold ETF. I'm thinking of allocating over $300k for retirement purposes. While the potential for short-term gains in a bullish market is appealing, I understand the importance of maintaining a long-term investment strategy.

[JefferyDuns]

I never viewed metals as an investment, but I always saw it as a great way to save your cash & retain the value from when you bought it. It’s not hard to turn it to liquid cash, and it beats letting inflation destroy your savings.

[jessicamoore]

Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further

[esther.]

I just acquired more gold and silver a few minutes ago. Tying up money because of an impending stock market meltdown is also a bad idea. Life is a risk, and it's better to take risks than to do nothing; you can't constantly expect to make enormous profits all of the time; and individuals have so many different perspectives on a recession. My portfolio rose by $300, 000 in gross profit in just 5 months; the key is to diversify your portfolio and you will experience spectacular returns by investing wisely.

[lailaalfaddil]

This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

[Riggsnic_co]

It’s always a good option to keep some gold. Well with the current market situation and everything at stake with the present economy, I’d say you’re better off staying away from stocks fr awhile or better still reach out to an adviser for guidance.

[RuthEvelyn-rcbg]

With all of the current events, what is the best approach to profit from the present market? I'm still debating diversifying my $400k stock portfolio to obtain some profits while minimizing risk.

[kanuegwu]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[Raymondjohn]

At this moment, it is crucial for individuals to prioritize investing in alternative streams of income that are not reliant on the government, particularly with the existing worldwide economic crisis. Investing in stocks, gold, silver, and digital currencies can still be profitable during this period. Therefore, it is advisable to explore these investment options to secure one's financial future.

[gingerkilkus]

I am really worried about the current crisis/interest rates, these are all the signs of yet another 2008 market crash 2.0, so my question is do I still save in the United States dollar or is this a good time to buy gold?

[Ogden]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[MIchaelGuzman]

Everything smacks of economic collapse and recession. The good thing is that people are starting to learn that cash/fiat is pretty much stone age at this point, it's designed to fail eventually. The TOP 3 Surprisingly Easy Ways to Double or keep Your money in This Economy; Physical silver, Gold, who can guess the third?

[Hermanjackson]

Most people simply enter the foreign exchange market without comprehending matters like this. The first stage in building money is determining your goals and risk tolerance, which you may do on your own or with the assistance of a financial counselor who works with a verified Finance agency. And also you can learn the facts about saving and investing and create a clear plan, you should be able to acquire financial security over time and enjoy the benefits of income management.

[sulaimanbala]

Crypto user could top 1B by the end of 2023 as nations continue to adopt Bitcoin Buy the dip, and HODLfor the long term.Bitcoin Always comes back.

[ExxonMobilCompany]

Gold is a truly remarkable and valuable metal that has captured the human imagination for thousands of years. It’s unique combination of lustre, malleability, and rarity makes it highly desirable for a wide range of applications, from jewellery and art to currency and investments.