Above: Risks Of Gold & Silver Ownership.
There is a broader risk to gold ownership and that is loss of emotional control. You touched on it when you discussed buying in at the highs and selling below the buy point, which is related to emotion; however, it runs far deeper than that. Gold is a very emotional metal because it tends to attract very passionate people. Almost every emotion a person has can be amplified by the addition of gold.
Gold just sits there doing nothing? Yup, I think tthats the point. for me anyway. sure it wont reproduce on its own, but it wont vanish just because a new company comes out with a better usless gadgit either. Sure i have other money that does cute tricks but i love my lazy old gold the best :)
I’d much rather have assets in gold and silver than the paper fiat currency we have now. I feel we are on the edge of another financial meltdown and if your money is tied up in stocks and bonds, you can kiss it goodbye when the crap hits the fan. I would consider food storage as wise investment…..we always have to eat, right?
I never look at gold in cash terms.. I look at gold in what it will buy
People say gold doesn’t earn a dividend or income but that depends on what you call an income/dividend..
You put $10000 in a savings account and you buy $10000 in gold
In 20 years time you look at your savings.. your cash has made 40% interest (20×2%) but lost 80% through inflation (2% interest -6% inflation = -4%x 20)
Your gold hasn’t done anything but it will buy the same as it bought 20 years ago.. Which 10k has lost most value?
wrong … stock market you can easily have 5-10% on interest by year. but what happens when the stock market crashes, i think its best to invest in both. yep diversification is the key .. I bought gold and I bought stock market … now I’m happy for my gold.
Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present.
Totally agree! Gold & silver has been an enduring currency for thousands of years. Like you say it doesn’t earn dividends like an investment but then it doesn’t lose money like an investment. It just sits there silently day after day riding along with it’s value fluctuating on the precious metals market with paper currency. So you bought 1 oz. of gold at $1000. Over the next 20 years or so inflation (like death) is a certainty & $1000 doesn’t have the same buying power it did as in the past but is only worth $600! You can’t buy that 1 oz of gold anymore for $1000. That 1oz. of gold you bought 20 years ago now has a market value of $1400. It is also possible for that 1oz. to rally up in value in a short time because of market volatility. For sure gold does not have the liquidity of cash which can be used to buy anthing at any given time but it’s value will always rise in time because of inflation. Remember…diversification is an important hedge in any investment.