Is Gold a good investment?

Question

I'm 18 and have about $2,500 dollars in savings and still earning more. Yesterday I was thinking about how to invest it for the far future, when I mean the far future, I mean retirement money or money for my children when I die. I thought about the Stock Market but due to the amount of uncertainty and scams I thought I might try something safer. I thought about buying Whiskey and letting it sit there for a few decades and then selling it at a higher price, as whiskey tastes nicer with age and would be worth more money. But then I thought about gold, the countries currency is becoming worth less and less while gold is becoming more and more valuable, if I bought one ounce of gold 10 years ago, I could sell it today for double the cost that I bought it.

Would you say gold is a good investment, if not, what do you think is?

Answer 1

Not really. Gold is good when the dollar tanks. Currently the dollar is tanked, not as bad as a few years ago, but still tanked....although, relatively higher than the other currencies. Interest rate rise, which we haven't had in some time and the first wave is right around the corner, will make the dollar go up in value which will devalue gold even more.

You only would have doubled your money because the dollar has gone from high to low over the last 10 years.

For the most part, gold will stick inversely to the dollar and only go up with inflation. Basically, at best, after you factor in inflation, your gold 40 year from now will have only doubled in value if its also a really bad recession.



If you don't understand inflation....inflation is on average 2% per year.

Sooo, if you have $100 and you put it in a bank account that gives you a 2% interest. 1 year from now, you will have $102...how much did you make? Nothing...due to inflation, for what you could have bought for $100 today, it will cost $102 in a year.



Stocks aren't that risky if you're looking long term. Just have to pay attention. Even if you don't want to actively trade. Spend a few minutes each week seeing whats going on with your stock. Spend some time before picking a stock. Stay away from the penny stocks, they tend to be cheap for a reason. Remeber they are not just letters and numbers, they are shares of a business. You might pick a great stock and after 15 years, dump the shares because the company isn't that great anymore.



Whiskey only "ages" in the wooden barrel....you'd have to buy already aged whiskey that is expensive because it was a good year. Then if you hold it...let it become rare (because people drink the other bottles)...but you HAVE to store it right, then it could gain some value.



If you don't want to do stocks, wait for the foreclosures due to property tax auctions start...you'll see it listed in your local paper. You could pick up something for $2500. About $500 for the deed. Then get a mortgage against the property to fix it up and rent it out. We picked up a duplex for 2000. $5000 all together after the deed and some repairs. Rent each unit for $500 / month. Soo $1000 / month in income. Get screwed out of 2 months / year in rent. Old building, have to do another $5000 / year in repairs (although some preventative maintenance would reduce that).

Anyways, use all 100% of that money to buy more rental properties, don't take a dime of profit. Eventually they don't have to be foreclosures. Get a mortgage from the bank, show them the average monthly rent will pay the mortgage payments + your income from your job / other properties will cover the mortgage also....

Answer 2

Gold is a commodity like any other, with periods of increasing and decreasing prices. As I have been posting on here for years, gold has been in a bear market since 2011, and my analysis indicates that this will continue for another 2 years until mid 2017, and down to about $900. So as a long-term investment, I would strongly recommend that you avoid it. However, as a trader, there are certainly times to buy and times to sell. I see a 4-6 week rally right here, but then watch out below again.

Answer 3

Gold is a commodity hence it cannot be totally relied upon. But if you are thinking for a longer period of time, then gold surely is an option. Time and again investment in gold has yielded high amounts of profits. So you can surely give it a go! I’m not really a fan of holding gold and I’m definitely not a gold bug because I do not like gold’s many illogical drivers. However, when a financial instrument becomes well priced it is time to start acquiring it for the long term.

Gold is in that zone, so it is time to start paying it increasing attention.

Answer 4

Chose the right company stock and you could double your money in less than a full year. That isnt typical as there are thousands of companies to buy into, but it does happen. There is no better investment than stocks. That is unless you can build a very successful business. If you were to learn what makes a company worth buying into, you should do well. You cant take guesses in the world of stocks or you probably will lose. Read online articles or a book to educate yourself and then take the leap. If you arent comfortable with what youve learned so that you can make your own decisions about stocks, make an appointment to talk to a local stockbroker. Youll save alot more money by doing things online for yourself rather than an in person stockbroker, though.

Answer 5

Gold is volatile as well - if you bought gold two years ago, you'd have lost a lot. Plus, the real value of gold is very limited - a lot of it is wrapped up in weird notions of luxury and past value. If everyone tomorrow considered gold tacky and low class, the value of gold would plummet and stay there for some time. The industrial value of gold is limited, and other things do the same job just as fine or better.

Answer 6

How can you cash in on the potential growth that penny stocks have to offer? Learn here https://tr.im/P1hTF



There are three things you'll want to look for when picking a penny stock to make sure that you don't get penny stuck: Underlying business, financials, and footnotes.



When it comes to penny stocks, a company's underlying business is even more important than it is in exchange-traded stocks. That's because the penny stock world is home to "shell" companies that are legally incorporated, but don't have any business operations

Answer 7

I don't invest in precious metals for profit because on the average, their value only keeps pace with the inflation rate. That is better than burying your money in the back yard, but not by much.

Answer 8

great investment, buy and dig a hole and put it in it and come back in 60 years.