You learned in basic economics that the business environment goes in cycles. In the past decade the value of metal based commodities have soared. Gold, the most popular precious metal has exceeded $1200 in the most recent run up.
You hear advertisements on the radio all the time telling you that gold prices have soared to four times it's original value over the past 30 years.
The cost of living coupled with low inflation over the same time period has resulted in gold being a poor investment. The investment would have been like treading water. The investment in gold would have essentially stagnated over the past 30 years compared to your average stock gains. Precious metals investing over the past 30 years has not yielded returns anywhere near those returned by the stock market.
Over the centuries gold and silver have served as a basis of exchange because they have intrinsic value. Their value cannot be undermined in the way that paper currencies can be (by printing more money).
People tend to fall back into gold and silver investments during times of economic crisis.Gold and silver prices rose by more than 500 percent and stocks faced severe losses during the mid seventies. As you may have well noticed gold has skyrocketed again during this latest economic crisis.Investing in gold and silver as a hedge against inflation is a good investment, however we are currently not in that phase of the economic cycle.
Investing in gold and silver, over the long term, has not produced any significant benefit.Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. But as an investment the returns aren?t nearly as good as bonds, stocks, and real estate. Buying mutual funds or stocks can provide a better return if you truly want to invest in precious metals. - 32532
You hear advertisements on the radio all the time telling you that gold prices have soared to four times it's original value over the past 30 years.
The cost of living coupled with low inflation over the same time period has resulted in gold being a poor investment. The investment would have been like treading water. The investment in gold would have essentially stagnated over the past 30 years compared to your average stock gains. Precious metals investing over the past 30 years has not yielded returns anywhere near those returned by the stock market.
Over the centuries gold and silver have served as a basis of exchange because they have intrinsic value. Their value cannot be undermined in the way that paper currencies can be (by printing more money).
People tend to fall back into gold and silver investments during times of economic crisis.Gold and silver prices rose by more than 500 percent and stocks faced severe losses during the mid seventies. As you may have well noticed gold has skyrocketed again during this latest economic crisis.Investing in gold and silver as a hedge against inflation is a good investment, however we are currently not in that phase of the economic cycle.
Investing in gold and silver, over the long term, has not produced any significant benefit.Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. But as an investment the returns aren?t nearly as good as bonds, stocks, and real estate. Buying mutual funds or stocks can provide a better return if you truly want to invest in precious metals. - 32532
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