Is Gold A Good Investment?



You may have seen ads on TV or online telling you to buy gold. You might be wondering is gold a good investment? We will look at what they don't tell you in those 30 second paid for spots.

Inflation adjusted returns for the last 196 years show a $10,000 investment in gold has returned $26,000. Bonds would have earned you $8,000,000. Stocks would have earned you an impressive $5,600,000. So it is clear to see what the best investment is. Or is it?

If you look at different time frames the picture changes. But you can't predict prices. The farther out you go the better data you have and going almost 200 years we see that gold just doesn't perform well. It is outperforming inflation. It does earn a return it is just not as high as other investments.

If something happened the electronic infrastructure and the information about your money was lost you still would have gold.

At least that is what you are told. The problem is if some catastrophe like that happens people are going to want things like food and water. Gold is not going to be an immediate need. That is another problem with gold. It does not do much. An investment in a company is putting your money to use. The money will be used to make and sell products. Gold can be used for some applications but it is not as important to the economy.

That does not mean that gold is not worth adding to a portfolio. It is a hedge against inflation. It is physical and can be moved easier. It is more stable.

Gold coins are also an attractive alternative. They hold numismatic value beyond their melt content. They are small pieces of art. If you are attracted to the hobby it is a hobby that can actually earn you money.

To answer the original question in the title of this article is gold a good investment I have to say no. It  has its place in an investment strategy. The place of gold should not be overstated as many seem to try to do.

Comments

  1. Pedro Taylor ✅December 28, 2020 at 3:25 AM

    Recording success in cryptocurrency Bitcoin is not just buying and holding till when bitcoin sky-rocks, this has been longed abolished by intelligent traders ,mostly now that bitcoin bull is still controlling the market after successfully defended the $26,000 support level once again ad this is likely to trigger a possible move towards $28,000 resistance area However , it's is best advice you find a working strategy/daily signals that works well in other to accumulate and grow a very strong portfolio ahead. I have been trading with Mr Carlos daily signals and strategy, on his platform, and his guidance makes trading less stressful and more profit despite the recent fluctuations. I was able to easily increase my portfolio in just 3weeks of trading with his daily signals, growing my 0.9 BTC to 2.9BTC. Mr Carlos daily signals are very accurate and yields a great positive return on investment. I really enjoy trading with him and I'm still trading with him, He is available to give assistance to anyone who love crypto trading and beginners in bitcoin investment , I would suggest you contact him on WhatsApp: +1(424)285-0682 and telegram : @IEBINARYFX and through Gmail : (investandearnbinaryfx@gmail.com) for inquires and profitable trading platform systems. Bitcoin is taking over the world.

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