I’d imagine the sort of person who believes in “paper money continuously eroding” probably won’t be interested in holding paper gold.
The corollary of gold not suffering from inflation is that you also can’t realistically earn interest on it, which might be fine when interest rates are below inflation (like currently) but in general terms purchasing power of money saved in standard bank accounts has actually increased in purchasing power over the same period of 1999 to 2017.
On top of that money in savings accounts is actually being lent out to fuel economic growth by investing in businesses to increase productivity. Money invested in gold or silver is essentially dead.
It’s also worth remembering that gold is a volatile investment product. If you’d bought gold in April 1980 for instance you’d be currently sat on a fiat loss (before you even take into account 40 years of inflation).
Your best option for investing money to maintain purchasing power is to invest in a low-fee index-tracking fund. The returns from these over any decent period of time more than erases any losses in purchasing power and in fact delivers considerable returns.
Personally I would invest through the royal mint and hold actual gold rather the paper variety(traditionally this why many culture value high purity gold jewelry). That being said my bond portfolio on Wisealpha seems to be doing well
Oh no I’m not talking about paper gold. I’m talking about physical that’s held in a vault. Like I said on flint they have this. Your gold is held secure in a brinks vault, you can see how much you have and spend it via a debit card if you so wish. and if you wanted to you could have you physical gold sent to you. It’s much better to hold in a vault and pay insurance that way rather than hold it in your own home. For example if your house get burgled most home insurance won’t take into consideration if the price of gold has risen since you’ve insured it.
Hmmm… a gold and silver selling website singing the praises of gold and silver is hardly an independent view .
This Forbes article is a good read for those who feel gold isn’t a good bet.
[…] Unlike a bond, the metal [gold] pays no interest. There is no dividend. It may not protect you against the worst forms of inflation […]. And there is no implicit guarantee that it will appreciate in value.
I know this describes most investments. But at least if you invest in a basket of major stocks, although not guaranteed, you are likely to receive dividend payments. If you buy gold bullion or coins, this is not the case.
And I also acknowledge that investors are wary about paper currencies. Sure, they are based on the faith and credit of a government, but U.S. Treasuries Securities have never been defaulted upon in anyone’s lifetime. If that were to happen, the entire world financial system would collapse – and gold wouldn’t do you much good. […]
Of course holding physical metals doesn’t earn you dividends like stocks, but what happens when another recession happens and you were invested in stocks, bonds etc and didn’t hedge your bets. But in today’s climate with war with Iran and America looking likely, China wants independence from the US $ so they’re buying up gold big time gold price is shooting up. And it would go without saying to not put all your eggs in one basket. Have some money in stocks and physical metal as a hedge against each other.
Also if you look at all the fiat currencies that have come and gone. They all failed and returned to their Intrinsic value of zero. Gold will not, it does not have an intrinsic value of zero.
An no America has never defaulted, but that’s no indication they can’t or won’t. And why would gold do you no good if a collapse like that would happen? Let’s talk hypothetically. If currency went to zero you can’t use it. So what’s the next best thing that everyone knows has value? My shoe?? It would be gold and silver as they have always been used through out history.
phildawson
(Sorry, I will have to escalate this.)
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Not saying Maloney is full of baloney but I feel like I’m being brainwashed into a pyramid scheme.
He acknowledge fear is the biggest factor, and then goes into full fomo mode.
Why should he care about my financial situation, he just wants to get his book out and help generate as much interest in Gold & Silver as thats his livelihood.
Gold is absolutely fine as insurance against very bad (but not very, very bad) scenarios. Like all insurance it will cost you though, your holdings in gold will be losing about 2-3% for every year where the economy doesn’t collapse
1 Like
phildawson
(Sorry, I will have to escalate this.)
27
Oh yes that was my should have been in another reply.
It wasn’t at Maloney whos got a Willem Dafoe green goblin look going on.