Gold…good or bad investment?

[PaulKersey]

Circa 2005, I heard some of Americas “self-aledged” top economists stating …”Precious metal, specifically gold, is the only commodity on earth that has a value (other than basic industrial value) strictly controlled by emotion”.

Any thoughts on the stability or value of gold?

 

[Hardcalibres]

Gold is good......as Gold!

 

[teeceetx]

Gold is great ... just remember, it is at record highs now ... not sure it's the best time to buy, unless you think it will go far higher!

 

[Caribou]

For me gold, and I prefer silver, is a hedge. When the currency collapses, as every fiat currency does, precious metals hold their value. Back in the 1600’s a good suit of clothing cost an ounce of gold. Today an ounce of gold will buy you pretty close to the same. I have a friend that sold her house, bought gold, and is paying rent. Not a good idea, in my estimation.

I don’t have much in the way of PM’s. I’d have more if the wife would go along with it. For several decades I’ve heard that 10% to 15% of your assets should be in PM’s. I wish I had that much. Before you buy PM’s pay off all debt. If you have a mortgage and buy gold then the interest you are paying on the house increases the cost of your PM’s. I don’t buy metals with a plan to sell them but to hold them till I have no other choice. When the banks collapse or the country collapses, I will spend any cash till I use it up or people quit accepting it, then I will use my silver. An old dime will buy a loaf of bread but nobody is likely to give you change for an ounce of gold.

 

[Supervisor42]

Circa 2005, I heard some of Americas “self-aledged” top economists stating …”Precious metal, specifically gold, is the only commodity on earth that has a value (other than basic industrial value) strictly controlled by emotion”.

Any thoughts on the stability or value of gold?

If you haven't already, peek in on this thread:
https://www.homesteadingforum.org/threads/today-saturday-i-just-bought-a-couple-grand-worth-of-silver.3653/post-1026295
Lots of good info in the early pages.

 

[old tex]

I got into a discussion with someone a long time ago who was a big believer in gold as an investment. So I did the research on it. It turned out that up until that time it was a pretty good investment long term. Of course there were (more or less) dead times along the way but that happens with the stock market too. The one problem that I had with gold (& still have) is that you have to sell it to make a profit. Stocks can pay dividends along the way & those dividends can also grow over time. In other words, You can make money on the money you made.
But it can be a crap shoot either way. My wife tends to invest in dividend paying stocks & I tend to invest in fast growing & riskier stocks. Over short hauls she has almost caught me a couple of time. Over the long haul I'm ahead by a third.

 

[Tirediron]

something is only valuable if people think it is, gold has been excepted as valuable

 

[Hardcalibres]

People should diversify their investments.....as that is the best way to minimize risk.

But gold should have a special place in the investments or preppers.....because it has held value through thousands of years of human history. Few other investments have that history.

The currency ponzi scheme being run all around the world, over the last few decades, can't go on forever. It is fundamentally unsustainable.

It has only gone on this long because normalcy biased people can't comprehend that money may not have value during a crisis......money has always been there for them.

When (rather than if) a big enough crisis comes along.......modern cash (and bank balances) will become worth less than toilet paper.....but based upon history, gold will endure.

 

[Tim Horton]

Yes... Gold, silver are likely good investments, if you have the extra income to sit on it...

To me, the amounts, sizes of coins and such is not a useable quantity.. How you going to make change for a troy ounce of gold, silver, or such for 1 or even several carts of groceries ?? If coinage was in more useable sizes, maybe for instance a $10 or $20 coin size that would be a lot more manageable size to have...

Facts. details, thoughts.. ??

 

[Morgan101]

I look at Gold as more of a speculation than an investment. To the best of my knowledge, gold does not pay any interest or dividends. You buy Gold hoping it will go up, so when you sell it you will make a profit. Selling it will be the only time you will, hopefullly, see a profit

 

[Mountain trapper]

Yes... Gold, silver are likely good investments, if you have the extra income to sit on it...

To me, the amounts, sizes of coins and such is not a useable quantity.. How you going to make change for a troy ounce of gold, silver, or such for 1 or even several carts of groceries ?? If coinage was in more useable sizes, maybe for instance a $10 or $20 coin size that would be a lot more manageable size to have...

Facts. details, thoughts.. ??

That's why one should hold some gold in 1/10, 1/4 and 1/2 ounce pieces, as well as 1, 5, and 10 ounce bars. And at least a couple hundred face value coins in pre 64 silver dimes, quarters, half and dollars. As well as ounce, 5, 10 and 100 ounce bars.
I stopped buying gold 20+ years ago because I thought the price was too high. Over the last couple years I've been selling some gold making well over a profit of $2000 per ounce.
Gold has always been very valuable, and I see no reason for that to ever change. If the democrats win the election, they will get us in to WW3. And that will cause PM's to go much higher. That's just my opinion, which is worth less than nothing.

 

[Supervisor42]

I look at Gold as more of a speculation than an investment. To the best of my knowledge, gold does not pay any interest or dividends. You buy Gold hoping it will go up, so when you sell it you will make a profit. Selling it will be the only time you will, hopefullly, see a profit

That is exactly why it is not in my portfolio. I am Ferengi and I want my muuuney!
Most people cite SHTF is when it will really shine...
Think about it, if people are starving, how many do you think will be out buying gold at spot price?

 

[Mountain trapper]

That is exactly why it is not in my portfolio. I am Ferengi and I want my muuuney!
Most people cite SHTF is when it will really shine...
Think about it, if people are starving, how many do you think will be out buying gold?

They may not buy any gold, but they will trade for it. Like I said earlier, I've been selling some of my gold at over a $2000 profit per ounce. I'd say that was a good investment. When you buy or sell PM's there is no paper trail, unlike most other investments.
PM's should never be ones only investment, just like stocks should never be an only investment either.

 

[Ekatarina]

Gold always been a winner

 

[Caribou]

I look at Gold as more of a speculation than an investment. To the best of my knowledge, gold does not pay any interest or dividends. You buy Gold hoping it will go up, so when you sell it you will make a profit. Selling it will be the only time you will, hopefullly, see a profit

Not me! I buy PM’s as a hedge not as a profit producing investment. You can buy high risk high profit stock, You can buy bonds. You can buy low return low risk stocks. You can buy real estate. You can deposit money in banks or savings and loans. You can put your cash in the First National Mattress Bank. All these have their own risks and potential rewards. PM’s have little in the reward potential but almost no risk, it is a different investment type. It is not for everyone, the same is true about every other investment strategy.