Gold isn't an investment it doesn't produce anything. Metals are keep by people who don't trust the government and will go up and down. People point out how much they went up after they were kept at 35 for a long time but they spiked in the late 70s to about a thousand then haven't really gone up the past 30 years not even double the late 70s price. They should keep up with inflation but not really grow unless we have a disaster.
Buy a few gold coins (silver, too) for the grandkids. They will be impressed, especially if they are young enough.
But owning any more than that is "misguided", but I have been wrong before.
But, let's go over "why" you want to buy gold? Is it because of the advertising on TV by companies wanting to "sell their gold"? If so, let's look at it from their perspective. They own a "ton" of gold. So, they set up a company, buy expensive TV advertising and pay employees to process the transactions. In other words, they want to go from owning a "ton of gold" to owning "half a ton of gold".
All the while advertising that gold is a "good" investment. "So good" that they want to sell their gold. Why don't they get a real job, like selling soap, and buy more gold - go to 2 tons of gold.
And, then, what if you buy $40,000. in gold. Where are you going to keep it? Under your bed? What about thieves, a sinkhole or a fire? Put it in a bank vault? Costs money. And if a natural disaster strikes the bank building your gold will be looted by the first treasure seeker on the spot.
IMO, rethink gold (or buy GLD with no more than 10% of your investable funds)
The trend for gold is down. Now at $1216.60, it may drop
even further. If you must own some gold, it should only be
a small part of your overall portfolio.
However, there are some scenarios contemplating accelerated central bank purchases "that could be very bullish for gold prices in the near to intermediate term."
If we knew this answer, we all would be rich.
Past performance does not mean future results
I've recently become interested in investing a portion of funds that I've accumulated. I think gold is something that I'd like to know more about as an investment opportunity. I have done a small amount of research (and through things I've heard previously) gold has risen at almost a 30% gain per year for quite awhile.
But have also found information stating to stay away from gold investment.
Was just hoping to find some first hand advice or a few tips from someone knowledgeable on the subject.
Thank you.
