investing in physical gold

[Anonymous]

Anonymous wrote:

Anonymous wrote:I got gold coins once from a parent as gifts for grandchildren. I invested them by selling immediately, and putting the money into an index fund in their 529 plans. Gold has gone up like 5% total since then (over 10 years ago), so yeah that was the right move.

Yawn. Now do that for the S&P 500. I'll tell you which I'd rather have.

[Anonymous]

I would consider gold if I were a billionaire or something, maybe have a 5-10 million just to ensure I’ll still be wealthy if the world economy goes to hell.

For the average person it’s pointless. Gold is for wealth preservation in the absolute worst circumstances. If you’re middle class and have 50k in gold you will still need to work if everything else crashes by 90%, and if you keep your entire NW in gold you’ll have missed out on decades of economic growth in the broader economy.

[Anonymous]

Anonymous wrote:I would consider gold if I were a billionaire or something, maybe have a 5-10 million just to ensure I’ll still be wealthy if the world economy goes to hell.

For the average person it’s pointless. Gold is for wealth preservation in the absolute worst circumstances. If you’re middle class and have 50k in gold you will still need to work if everything else crashes by 90%, and if you keep your entire NW in gold you’ll have missed out on decades of economic growth in the broader economy.

Gold is for people who have more money than they know what to do with. These are the people who have doomsday bunkers in New Zealand.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would consider gold if I were a billionaire or something, maybe have a 5-10 million just to ensure I’ll still be wealthy if the world economy goes to hell.

For the average person it’s pointless. Gold is for wealth preservation in the absolute worst circumstances. If you’re middle class and have 50k in gold you will still need to work if everything else crashes by 90%, and if you keep your entire NW in gold you’ll have missed out on decades of economic growth in the broader economy.

Gold is for people who have more money than they know what to do with. These are the people who have doomsday bunkers in New Zealand.

Doomsday bunkers, that they think will have staff....

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I got gold coins once from a parent as gifts for grandchildren. I invested them by selling immediately, and putting the money into an index fund in their 529 plans. Gold has gone up like 5% total since then (over 10 years ago), so yeah that was the right move.

Yawn. Now do that for the S&P 500. I'll tell you which I'd rather have.

For those wondering- PP here who sold a while ago, I looked and it was late 2011 (longer than I thought!). Sold for just under $1900/ounce. Price today just under $2300/ounce. So that's an annualized growth over just over 12 years of 1.6%, not accounting for inflation. Average CPI in these years was 2.5%, so the gold had a net real loss of 0.9% annually.

Total Stock Market fund annualized growth in last 12 years- 12.5%, or 10% net real gain annually.

[Anonymous]

Anonymous wrote:I would consider gold if I were a billionaire or something, maybe have a 5-10 million just to ensure I’ll still be wealthy if the world economy goes to hell.

For the average person it’s pointless. Gold is for wealth preservation in the absolute worst circumstances. If you’re middle class and have 50k in gold you will still need to work if everything else crashes by 90%, and if you keep your entire NW in gold you’ll have missed out on decades of economic growth in the broader economy.

I totally agree.