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Posted on 4/17/24 at 8:53 am to TigerDoc
quote:
Pros would be diversification, serving as a hedge against inflation and economic uncertainty given that its purchasing power tends to hold up over time (e.g. high inflation or market downturns). Cons: lower returns and can lose value more frequently than stocks in ordinary economic conditions.
All of this. I believe most like it as a hedge against inflation and alternative to holding cash.
Think of it this way- if you have a dollar bill, and a dollar worth of gold, your dollar bill will never be anything more than a dollar bill (and will ultimately be devalued due to inflation). However, the value of your gold will increase along with inflation.
Personally, id rather be in the market, but it's an interesting diversification play.
Posted on 4/17/24 at 8:57 am to tgerb8
There really is no con to Gold. It will always be worth something.
Especially if they ever succeed in making everything digital.
Especially if they ever succeed in making everything digital.
Posted on 4/17/24 at 9:04 am to tgerb8
I keep a little gold and silver on-hand just in case, but don't make it a significant portion of my portfolio.
Posted on 4/17/24 at 9:46 am to tgerb8
quote:
Can someone explain the pros and cons of gold
quote:
my financial advisor is against it
Your financial advisor claims to be against it because he makes more money getting you to invest on other things.
I 100% guarantee you that he has some physical gold in his safe.
That's all I've got.
Unlike paper currency that continues to diminish in value every day because the fed keeps printing more paper to give out as entitlements and send to Ukraine, gold is a limited resource that is quite valuable and nearly unaffected by natural oxidation and almost every other natural phenomena.
Keep some gold. Also, keep a modest supply of small denominations of paper money on hand as well. Yeah, it's losing its value right now, but should a widescale EMP event (we'll say mega solar flare for example) and totally trashes the grids and the banks go down, only what paper money is out there in circulation will exist because the rest is digital and can't be accessed. The value of the dollar in that scenario will quickly rise, and you don't want to have only 20s in your safe, in case you need to buy something that only costs a dollar or two with physical cash.
Just some prepping advice from an anonymous message board shitposter.
Posted on 4/17/24 at 9:54 am to tgerb8
You can trade that gold later for more of the dollars that are worth less. I don’t understand the goldbugs.
Posted on 4/17/24 at 10:04 am to Bamafig
quote:
You can trade that gold later for more of the dollars that are worth less. I don’t understand the goldbugs.
Interestingly, you're not limited to only trading that gold later for more of the dollars that are worth less. You also have the option to trade that gold for housing, food, water rights, land, guns, ammo, silver, fuel, Lira, drachma, rubles, rupies. Maybe a few other things.
I know a 'goldbug' that made $27,251 on his investment. Last Thursday.
Posted on 4/17/24 at 10:08 am to Bamafig
I think most people hold for a SHTF scenario. But, I don't know how much that will save you. There was some decent material out there about how silver helped some people navigate one of the Argentina crashes.
I don't understand the bitcoin bros. I realize some people have made a lot of money off it. But, it never made sense to me that people who don't trust the fed's digital printing press moved to something just as intangible.
I don't understand the bitcoin bros. I realize some people have made a lot of money off it. But, it never made sense to me that people who don't trust the fed's digital printing press moved to something just as intangible.
Posted on 4/17/24 at 10:43 am to tgerb8
Gold has intrinsic worth.
Posted on 4/17/24 at 10:46 am to OccamsStubble
You are proving my point. Gold is only worth dollars. In a SHTF scenario, a pound of beans is worth more than a pound of gold. Nobody will barter for gold if they need to eat.
Posted on 4/17/24 at 11:10 am to Bamafig
quote:
You are proving my point. Gold is only worth dollars. In a SHTF scenario, a pound of beans is worth more than a pound of gold. Nobody will barter for gold if they need to eat.
Cool. Put a 1000 pound sack of beans on your back and walk three miles to trade it for 30 pounds of butter. Or you could just carry one-tenth oz gold piece in your pocket, no one would know you had it, and swap it for that same 30 pounds of butter. In your scenario, gold has gone to zero. In the history of man's existence on earth, that has never happened.
Posted on 4/17/24 at 11:31 am to OccamsStubble
correct. There's a reason that gold has survived as a monetary exchange for thousands of years, but most Fiat reserve currencies last only a couple of hundred years
Politicians dilute fiat currencies when they aren't tied to a standard. The abuse is too tempting for them .....
Politicians dilute fiat currencies when they aren't tied to a standard. The abuse is too tempting for them .....
Posted on 4/17/24 at 12:32 pm to tgerb8
quote:
you can/will make more in the market.
That's why gold is considered a hedge.
I hold enough gold to pay the sheriff property taxes for about 5 years. If everything goes to shite, you still have to pay the sheriff to keep your land. I'm just banking that the sheriff will take gold as payment.
And I mean gold gold, not paper gold.
But you can make money with gold, here's how:
When the radio programs are all being sponsored by gold mongers, sell. When no one is talking about gold, buy.
Posted on 4/17/24 at 1:01 pm to tgerb8
quote:
I think his reasoning is mostly that you can/will make more in the market.
Generally, he is correct…by a lot. Gold is a place to retreat when you think stocks are going to go backwards. It’s also a secure way to hold “mad money”. If you have actual gold the economy could go flat bust and you would still have an asset you could barter with. And the government can’t prove you have it. Mine was in the boat my guns were in.
Posted on 4/17/24 at 1:06 pm to tgerb8
It’s a commodity with wide industrial and consumer usage from electrical applications to jewlery
Not sure of any con.
As an investment, I’d be cautious with it. I own it as a hedge as it tends to do well during inflationary times and currently that’s proven true for me.
Not sure of any con.
As an investment, I’d be cautious with it. I own it as a hedge as it tends to do well during inflationary times and currently that’s proven true for me.
Posted on 4/17/24 at 1:36 pm to Penrod
quote:
Generally, he is correct…by a lot. Gold is a place to retreat when you think stocks are going to go backwards.
Or think the dollar is going to go backwards, if you don't prefer the risks of stocks and need to hold currency. Since August 1971, gold has compounded annually at a rate of 7.93% per year. The dollar has lost 98.20% of its value against gold over that time period. Seems like low risk, solidly performing reward.
Posted on 4/17/24 at 1:38 pm to tgerb8
Well you have to store it somewhere if you buy physical gold. If you buy pieces of paper saying you own some gold...thats quite a lot of faith in whoever is storing it for you.
Posted on 4/17/24 at 1:57 pm to thelawnwranglers
quote:
I think I heard it is up 7% in last 5 years so not s good inflation hedge
This was from a crypto baw on MSNBC though
He's a dumbass.
in 5yrs gold is up 86.7%
4/18/19 it was trying at 1270. 2374 right now.
Consider silver as an investment as well.
Historically the gold to silver ratio has always hovered around 50:1
Right now that ratio is ~ 84:1.
silver is used much more in industrial applications. And, on top of that, of all the contracts that are traded on exchanges, is a fraction of that actually available for delivery.
This post was edited on 4/17/24 at 2:20 pm
Posted on 4/17/24 at 2:00 pm to tgerb8
quote:
Can someone explain the pros and cons of gold?
Hop on ebay and buy some gold and silver coins. It's awesome to have some around.
Posted on 4/17/24 at 6:52 pm to Kingpenm3
quote:
Hop on ebay and buy some gold and silver coins.
Pro tip: If you’re going to buy on eBay , be prepared to deal with fakes.
One option is to buy on the Apmex store on eBay …. the other option is if you have a metal tester ( to verify metallurgy content)
This post was edited on 4/17/24 at 6:55 pm
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