Quote:
Originally Posted by Fritzer
While I think that Real Estate is the best revenue-generating investments one can own, I still think PM is inherently valuable. Since the dawn of civilization it has been used, and while yes there are extremely low returns, it is stable. People purchase gold to preserve value, the one's who buy it to make a ROI are foolish. There is a reason banks and governments stock-pile it along with other assets, and it was originally the store of value of the dollar. I think that gold will always be valuable for the foreseeable future, until Elon Musk starts mining asteroids for it that is.
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You are welcome do with your money, whatever it is you wish to do.
My only additional comments would be as follows:
1) Gold historically doesn't preserve value, as it doesn't keep pace with inflation. The roughly 4% return over the long run has mostly been due to the recent spike in values. If you remove the last 10 years or so, gold has not risen at the rate of inflation.
2) If you are that worried about preserving wealth, then move your money into a strong long term CD or Money Market Fund. You can get fixed rates of around 2-3% with enough capital investment, and those are guaranteed returns, unlike gold. They will also typically keep you within 0.2 - 0.5% of inflation, so you will lose some value of the long run, but very little.
3) Gold is only worth what someone is willing to pay for it. I liken gold to baseball cards. 30 years ago, many people had a baseball card collection worth thousands and could be liquidated at nearly any local sports card shop. Now, those cards (with a very few exceptions) are worthless. They are worthless because no one is willing to give any money for them. This is the same as gold. If no one is willing to buy it from you, it isn't worth anything. If the shit hits the fan - what are people going to accept as payment? Gold, Cash, or food, guns, ammo, and water?
4) If you are content in your decisions and wish to remain with commodities as part of your net worth and are buying bullion vs certificates, then seriously - put them in a bank. There isn't a safe made that is available to the public that a competent thief cannot break into in just a matter of time.