Simply put, gold is not a bad investment, and gold is not a good investment. Gold is not an investment at all; gold is money. Once this simple yet difficult to comprehend fact is digested, one can begin to see gold as the portfolio-diversifying, wealth-preserving asset that it actually is.
What’s more, the GDX did the same thing in May and June, and that opened the door to a 35% rally. Gold always zig-zags, and miners even more so. Smart investors will use this pullback as a golden buying opportunity. So, yeah, gold is still a good investment. And miners are better. All the best, Sean
People who wonder if gold a good investment may be interested to know what the top three reasons are for buying it. The three reasons most commonly used for buying gold are: Gold becomes an investor’s hedge against the economy. Gold provides investors a safe haven no matter what’s going on in the economy.
Some critics question whether gold is a good investment. Today, investors choose to buy gold primarily for one of three reasons. Namely, investors buy gold as either: a hedge against inflation, a safe haven in times of economic crisis or as a direct investment. Gold as a hedge. A hedge is an investment aimed to offset losses in another asset.
Gold has indeed been a good long-term investment and especially when held in conjunction with a stock and bond portfolio. And while gold’s future returns may not live up to its past performance, we would anticipate that gold will continue to perform well when stocks and bonds perform poorly.
The gold and silver charts should suggest whether gold is a better investment than silver going into 2020. The daily gold chart is the one we start with. As said many times analyzing the precious metals space always starts with the gold trend.
While it can be a good choice, just realize gold, like any investment, is impacted by perceived value, and it doesn't always act like you think it should. Things to know before investing in gold:
Gold might have a place. However, many experts warn that you should be wary of how much gold to include in your portfolio. One rule of thumb is to limit gold to no more than 5 to 10 percent of your portfolio. Depending on your situation and your risk tolerance, you might be more comfortable with a bigger or smaller share of gold in your portfolio.
Picking the right gold stock investment for your situation. Buying physical gold in any form -- bars, coins, medals, or even jewelry -- is the most direct way to gain exposure to gold prices.
All the experts the Investing News Network spoke to did agree that while uncertainty is positive for gold, it is bad for the dollar — and there is undoubtedly more uncertainty ahead.