Is Gold Worth Looking Into as an Investment?
What doe value investors usually think about gold as an investment?
I have heard mixed reviews from many individuals regarding gold as part of our investment portfolio. From a value investor’s viewpoint and particularly from a conservative investor’s viewpoint I would not want to invest in gold simply for speculative purposes but in general, is gold feasible to have as a portion for our portfolio.
On the one hand, I know that individuals like Dave Ramsey and Warren Buffet have spoken against investing in gold particularly because it isn’t something that is productive in nature and hence won’t grow as an investment. On the other hand, other individuals have spoken about the nature of gold as a hedge against inflation and think that having a small portion of gold in our portfolio is crucial to curtailing the effects of inflation.
For those that think that gold is something worth looking into are there any books or further resources that you recommend? Also what are the best, and most affordable ways to invest in gold? Should we stick to physical gold or would it be better to look into ETFS, index funds, stocks, or any other investment vehicle? I have heard of a fellow by the name of Mike Maloney, Is he worth looking into? Or is he someone we should generally avoid as far as his advice on gold from a value investor’s point of view?
- 9 months ago
It might have a place in a portfolio as a small piece of the pie. People like Ray Dalio use it to hedge against inflation, deflation, a recession, political uncertainty, etc. Even so, it's still probably not necessary to hold any if you have a long-term strategy and can ride out the dips in the market.
- tiescoreLv 69 months ago
Gold is a hedge to protect a diversified portfolio against run away inflation. If you do not have the diversified portfolio built yet there is really no reason to speculate on gold yet. If you DO have the diversified portfolio built the last thing you want is for your gold investment to be doing well. Its there as insurance,
- MarkLv 510 months ago
Well-chosen gold stocks are skyrocketing.
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- BillLv 410 months ago
Gold itself is a hedge against inflation rather than being an investment.
Gold company stocks, on the other hand, are investments.
- Pearl LLv 710 months ago
if you want it its worth it
- 10 months ago
Gold is simply a store of wealth. Very little of it is used to produce commerce which is where value comes from. The problem with having gold (and I have some) is, when is it time to buy it and how do you know when to sell it? Look at the price of silver - the Hunt Brothers attempted to corner the market in silver about three decades ago and the price of silver has never again reached where it was then. Yes, gold is a hedge against the eventual demise of the dollar which may occur because of increasing national debts. But is that in ten years or a hundred years?
- DzeLv 710 months ago
maybe as a potential money maker if you have funds to tie up in it .. relying on it to 'save you' though in a serious economic crisis i dont think will work .. they'll just temporarily devalue it or outright outlaw commerce in it like in the great depression ..
- Anonymous10 months ago
Its not a great idea unless you are sure the worlds economy is going to crap and soon.
Stick with stocks or reits or index funds.