Should I invest in gold?

What are the benefits/detriments to investing in gold?

Asked on June 15, 2017 in Finance.
Add Comment
8 Answer(s)

No tax incentives. Investing in small business and property there are always expenses and government benefits you can take advantage of. With gold there exists no such benefits as with all commodities.

con

Answered on August 11, 2017.
Add Comment

No income.  Property can provide income through rent and shares can provide income through dividends. Gold can only appreciate in value for you to make money making it more like a savings account than an investment.

con

Answered on August 11, 2017.
Add Comment

Leverage. You cannot borrow against gold or leverage your initial investment as you would with property or shares. This limits you from the start as to how much of the asset you can purchase.

con

Answered on August 11, 2017.
Add Comment

Hedge against currency fluctuations and inflation. Historically god ha served as a hedge against both rising inflation and depreciating currencies. Typically when inflation rises gold appreciates because investors realize that with their money losing value it is a wise choice to invest in hard assets.

pro

Answered on August 11, 2017.
Add Comment

Safety net. Political and economic uncertainty is a harsh reality for investors. During uncertain times people have used gold, even among the collapse of empires, to preserve their wealth. Gold has applications in the real world as well so even in a complete global economic collapse gold will still be a tradable commodity.

pro

Answered on August 11, 2017.
Add Comment

Diversification. Gold is just another way for to provide safety within your portfolio by diversifying your assets. Property, shares, gold and cash are a good example of a conservative and wise investment portfolio.

pro

Answered on August 11, 2017.
Add Comment

Greater fool investment. To make money from gold you must find someone who is willing to buy it from you for more than you paid. This is known as the ‘greater fool’ investment because you are trying to find a another ‘fool’ to make money off. While these types of investments have their place they are not the best choice for wealth creation.

con

Answered on August 11, 2017.
Add Comment

Holds value. Gold has preserved wealth for thousands of years which cannot be said of cash which decreases in value every year. The price of gold may jump up and down but in the long run it holds its value better than cash.

pro

Answered on August 11, 2017.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.