Is gold an investment reddit?

Gold prices fell slightly less than stocks. You can speculate on the spot price.

Is gold an investment reddit?

Gold prices fell slightly less than stocks. You can speculate on the spot price. One can speculate on inflation and how stimulus and the printing of money will affect the price of gold. It actually costs money, because you have to keep it safe.

And you pay more than the current rate, so you lose like 3% upfront. It's also a very speculative investment. You could also buy weapons and spam while you're at it. Gold is the most popular precious metal among investors and the usual inflation hedge investment.

Considering inflation and inflation expectations, it makes sense to consider gold as an investment right now. That's why we should talk about what drives the price of gold and should we get some gold? Seeing how well gold has maintained its value over the past 2 years, it doesn't surprise me. Gold only makes sense when you've already grown your nest egg to the point where conservation is more important than growth. So you lose, in my opinion, the most important characteristic of gold, the fact that you can actually possess it physically.

Do any of you think I jumped at a bad time, since gold is very high right now and could go down once inflation stabilizes? Don't trust anyone who claims that NOW is the time to buy gold, real estate, stocks, bonds, or anything because they don't know it, regardless of how polite or safe they sound during infomercials or interviews on CNBC (no difference). This also leads me to the next factor that influences gold prices and that is the strength of the US dollar, since gold is mainly denominated in dollars. You shouldn't think about “good” or “bad” investments (although there are certainly bad investments). Statistically speaking, you'll probably give up profits by having some gold instead of more stocks, but after all, diversity is an insurance policy.

For most investors, they learn about mutual funds, stocks and bonds long before commodities such as gold and silver. The Fed could raise rates several times this year because of this ongoing inflation, which would cause gold to actually suffer in the short term. If I remember correctly, gold yields over long periods of time (20 to 30 years) are much more variable than those of stocks. You can go back to Roman times and an ounce of gold would buy a cow or a nice set of cloths, almost the same value as an ounce of gold would buy today, 2000 years later.

There are periods of 20 to 30 years when gold has performed horribly, and very few periods when stocks have performed poorly. An ounce of gold bought you a very nice set of clothes in Roman times, and now they buy you a very nice set of clothes.

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