Do you invest in physical gold?
I was recently gifted some gold coins and I was wondering what is the forum’s opinion (and from more finance knowledgeable people) about buying a gold coins as an investment?
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Based on the most helpful WSO content, investing in physical gold, such as gold coins, can be considered a traditional method of preserving wealth, especially during times of economic uncertainty or high inflation. Here are some points to consider:
Historical Value: Gold has been valued for over 2,600 years as a form of currency and investment. It's often seen as a "safe haven" asset.
Inflation Hedge: As currencies lose value due to inflation, gold is often sought after to maintain purchasing power. For instance, during periods of high inflation, gold prices have been known to increase.
Market Sentiment: The sentiment on Wall Street can also influence gold prices. For example, if inflationary fears are prevalent, gold prices might rise as investors look for stability.
Liquidity: Gold coins can be relatively liquid, meaning they can be sold or traded with ease compared to other forms of physical assets.
Storage and Insurance: Physical gold requires secure storage and insurance, which can incur additional costs.
No Yield: Unlike stocks or bonds, gold does not produce an income stream like dividends or interest.
Market Fluctuations: While gold can be a stable investment, its price can still be volatile in the short term.
Remember, it's important to consider your overall investment strategy and how gold fits into your portfolio. Diversification is key, and while gold can be a part of that, it shouldn't be the only asset you rely on. Always consider consulting with a financial advisor to align such investments with your personal financial goals.
Sources: Time for some upgrades | The Daily Peel | 11/17/21, End of Bitcoins on 18th December 2017, The Last "what should I do with my money?" Thread (hopefully), Bitcoin Q & A: Bubble or Breakthrough? Both! Cult or Currency? Both!, Investing in collectibles?
I used to when is was closer to $1,000. I don't really use it as an "investment" per say, more of a "civil war end of the world type thing" where if I had to flee, I would like to have enough to get me transportation, housing and food.
It holds value fairly well over long periods of time too, from what I under stand, 1 Kilo of gold has always been able to get you a car, and 10 will always be enough for a house. 1 oz of gold should be enough for 1 months rent in most cities in the world.
That is what I meant
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