Why do people think gold is a good investment?
April 14, 2010 by
Filed under gold investment
I remember back in the 70’s gold was going for over $800 an ounce.
Now after almost 30 years it’s about $950 an ounce.
How can anyone say gold is a good long term investment??
I do have about 6 ounces of gold coins but I have it just because I like the look and feel of real gold.
Gold has historically been popular in times of high inflation or fear. Given what the stock market is currently doing, there is a lot of fear out there.
York
http://www.yorkinvestmentreport.com
it is silly really commercials make it seem like such a great investment but truly it is not. Unless of course u happen to have vast amounts of it or something
Gold has real value unlike paper money which is just a “note” but only has value if there is gold to back it up. In the US thats in Ft Knox.
Gold prices goes down when the economy is good, and up when it’s bad. Try to imagine that the economy collapsed and paper money was worthless. Your gold would be the only real currency you could use to buy food, gas and the basic necessities.
6 oz of pure gold is a great thing to have in this economy. I would buy more since it’s possible that the price of gold will continue to go up. So yes, it’s a great long term investment. Wish I had some:)
Sometimes the only answer I can give is that some people are stupid.
I agree its a horrible investment. Historically speaking gold prices have barely kept up with inflation. It had a few really good years but everything always averages back out. So all the people who bought gold as an investment during the good years are back to getting virtually no return on their investment. People who chase performance rather than riding out the ups and downs of long term investments tend to do poorly in investing.
The other reason I can give is that some people think gold will retain its value if the economy collapses. That simply isn’t true. Look at what happened in New Orleans after Katrina. If you had a gallon of gas or a bottle of drinking water, you could have traded it for anything you wanted. But nobody was running around looking for gold. In a collapsed economy, the first economic system to develop is a bartering system where people trade essential goods and services but precious metals that serve only for purposes of decoration become quickly worthless.
bcoz gold is gold
When people see the government print as much money as they want, the people lose faith in paper money. They want money that can not be printed. They turn to gold.
But it doesn’t really help. When times get bad, the gold gets stolen. The minute people show the gold, the world gets dangerous. Instead of security, the gold is a sign of trouble.
And we are now learning to ask “How valuable can gold be if every shopping mall in America has 10,000 pieces of gold jewelry for sale?”.