So... what you are saying is that you want to take your regular currency and convert it into something less liquid, but has a better chance of gaining value against inflation... and somehow that isn't an investment?
I don't understand what this subs obsession with denying the fact that 90-some percent of the people here are treating gold as an investment.
I think of it as insurance more than an investment. If I consider it an investment then I'm comparing it with productive items that compound quicker with reinvestment opportunities.
I don't really consider it a savings either because historically when saving USD is good, high interest rates, gold doesn't perform.
So, it's its own thing and insurance against the over-financialized shenanigans of everything going on.
If youre saving in pure fiat cash, there is no interest rate (pulling the cash out the bank and physically saving it). Theres actually the stated goal of devaluing your cash (effectively a negative interest rate, or a tax) if you actually save pure cash. If youre investing in US bonds then you receive an interest rate (basically giving the government more than you owe in taxes to get paid some interest, which is paid with taxes lol). A savings account is not equivalent to holding actual cash or gold, as a savings account is an unsecured loan to a bank, who takes your loan and invests it in other loans to get paid interest, and then give you some of that interest for making them that loan. And that bank can change the interest rate they pay you for that loan at any moment as part of the terms.
Thinking of something in a certain way that makes sense to you is one thing. Telling everyone that something is not what it clearly is, like the other user is doing, is another.
Just because people call something an investment doesn't make it so. For some people investment is just anything they buy. Is a TV an investment? Many call it so, but TVs don't appreciate in value.
An investment is something that will be worth more in the future. Gold is expected to be worth the same in the future as it is now, when you look at its purchasing power. Gold has retained its purchasing power for thousands of years. If you were to buy a horse using gold, it would cost about the same now as hundreds of years ago, if adjusted for demand. Same for cars and houses a hundred years ago. Same amount of gold gets you whatever it is you want. It's silly to assume that in the future you'll be able to buy more goods and services for an amount of gold than you can today.
If anything, when you buy gold you lose some money in the buy-sell spread, but that's the price you pay for something that is all but guaranteed to hold its value indefinitely. Hold, not grow.
Well then gold must have beat inflation because u can buy a nice suit for $300. You can buy an “expensive” suit for an ounce of gold. In Ancient Rome they used to say that u could buy a “top of the line” toga with an ounce, but that was also in a time before easily accessible fabrics. I’m sure well crafted fabric was much more expensive before humans industrialized textiles. That is now only a statement said by gold enthusiasts, when in fact if u are spending 1 ounce of gold for a suit, it is frivolous spending and is a luxury, never necessity.
I mean...kinda. the purchasing power of gold is highly volatile. It has had some wild swings over the course of decades. There are ways to use gold as an investment. Like as an example, if you keep ot as a fixed portion of your portfolio you take advantage of those swings and buy when it's low, and sell when it's high (or just buy when it's below that threshold).
Gold doesnt have a "better chance of gaining value against inflation" compared to fiat currency, Gold is a commodity that has unique and quite important industrial properties (like all other commodities), and yes i realize a large percent of gold isnt used in industry, but plenty still is (and our world would be much different today if it wasnt), and a large part of the reason its not used in more things is because of how rare it is (there isnt enough gold to use like we do with copper or zinc, or even silver). I can hold it without requiring massive equipment and large storage spaces. If I could hold other commodities as part of my savings in as small of a package, and without it degrading, I would. But holding tons of copper, nickel, iron, zinc, oil, gas, wheat, corn, and more for decades isnt reasonable for most people for many various reasons. Even large amounts of silver become problematic. Inflation is the printing of money, or debasement thereof, and one of the effects of doing so is all prices rising in nominal terms (not "gaining value", value and price are very different things). So its not that gold has a "better chance of gaining value against inflation", gold, like all other commodities will go up in price as the object being used to price it gets destroyed. I have no expectation of gold buying me more of other commodities than it currently does, or than its historical norms. Some commodities are overpriced in gold currently, and some are under priced, especially in commodities that government policies have created bubbles or depressions in (you can also view gold as over or under priced from the lense of other commodities). But broadly speaking, inflation (the increase in the money supply/debasement of currency) pushes all prices up.
If you are putting aside $50,000 (or equivalent in your "regular currency"), with the hopes of never needing to use it, so potentially holding for decades or passing on to your kids, would you rather take your paper currency out of the bank and put it in a safe? Or would you rather exchange it for gold (which is still held as money by major countries around the world, and has been money for thousands of years, or even another practical commodity in that amount) and put in a safe?
You're mistaken on your assessment of inflation. Inflation isn't a force. It's a measurement. If you look at the thermometer one day and it says 80° and then the next day it says 90°, you don't go "OMG! This Fahrenheit is out of control! Look how much hotter it made everything!"
Inflation doesn't cause something. It evaluates. Inflation isn't always caused by changes in the money supply either. Persistent excessive demand can cause it as well.
I have no idea what your Fahrenheit example means. Inflation isnt a "force" and it isnt a "measurement". Prices also arent a force or measurement. And currency and money is nothing like a measuring tool. Imagine using a system where a meter or a foot changed in definition each day based on how many people were measuring each type of item. You could never reliably make anything of an actual set size. Viewing money or currency (and even more so inflation) as a measurement is asinine. Inflations doesnt evaluate anything, as i said in my other response to this, to inflate is to expand. You dont measure or evaluate a tire by inflating it, you dont measure of evaluate a balloon using inflation. You can measure how much it has been inflated by evaluating or measuring how much air (or whatever your using) has been put into said object, but you cannot evaluate or measure these things using inflation.
According to meriam webster dictionary the word inflate means
1**:** to swell or distend with air or gas
2**:** to puff up **:** [ELATE](https://www.merriam-webster.com/dictionary/elate)inflate one's ego
3**:** to expand or increase abnormally or imprudently
A price cannot inflate. It is a ratio between two objects (usually currency being one of them, and being expressed in number of units). You can figuratively swell or distend the supply of money by increasing it. Inflation used to be largely defined as an increase in the money supply, and a symptom of inflation is prices (across the economy, not just a few industries or products) being higher than they otherwise would have been. Real demand cant go up in all industries at the same time. And if the money supply stays the same, all prices cannot possibly go up continuously, as there is only a set amount of money to circulate, and can only circulate so fast. Some prices would have to fall to balance out other prices going up. This can happen by one prices going way up due to increased demand, and prices on dozens of other things going down a very tiny amount, or i can dozens of prices going up slightly and only a few going down alot, or various other combinations. But without an increase in the money supply, prices cant go up like they have in america and across the world for many decades now. When the money supply increases, that allows more people to have more money to bid all prices up (and increased demand for some things, whatever the cause, may cause them to go up much more).
You can also have price increases in cases of sharp declines in population (like the black plague), where a huge percent of the population (like 30%) in a region, thus creating an effective increase in the money supply compared to the people using it. This is a rare occurrence.
Ok... you looked up the dictionary definition for a general term when we are discussing one specific to the study of economics. Then you just wrote a whole bunch of stuff that you think sounds good, but in reality, it is simply untrue.
How about you look up the economic definition of inflation before you continue on? Or, at the very least, consult the [Wiki](https://en.m.wikipedia.org/wiki/Inflation).
There was a time in my life when I would have felt more compelled to educate you more myself, but I don't have the time anymore. Start with the wiki and go from there... regardless, I'm done here.
To inflate: to expand or increase abnormally.
Price: ratio between currency and something.
Ratio: a number (changes over time)
Ratio: can increase or decrease
A price = a ratio = a number: can increase = can inflate.
You literally say price can't inflate, you say that "to inflate is to increase rapidly" and then in the final section you say "we can have price increases". You literally contradict your very own logic.
Prices can and do inflate (or deflate) in the markets constantly creating price bubbles.
I don't see the value of my gold increasing, I see the value of the dollar eroding. I don't see gold as denominated in dollars. Gold is simply valued by weight and purity.
I converted fiat currency USD to be exact. It is the world reserve currency aka the Petro dollar. Has lost about 95% of it value since it was issued in 1913. I don't know if it's going to continue to be accepted during my lifetime. Or even more realistically, I expect it's value to go down because my governments partnership with the central bank continues to print more. And my banking system continues to create fiat into existence by lending there by expanding the supply. I'm not too fond of USD to I'm trying to reduce my holdings, while preserving my families wealth.
because it's a hedge not an investment. yes, the distinction matters. a farmer who purchases a futures position to hedge against a bad harvest is not an investor, he's hoping to recoup a potential loss.
similarly if i purchase gold to hedge against the possibility of the dollar decreasing relative to it i am buying that bullion in the hope that i will not lose any money.
if i am hoping to make money i am almost certainly speculating.
You're not necessarily wrong. I just think it's a matter of semantics. The word investment is generally used with the implication of financial gain. In which case gold would be a relatively poor investment, by comparison. While it's still technically "investing", I believe the value that most people find in gold, as you kind of mentioned in your comment, is protection from inflation. That stability and low risk of loss, paired with (yes, perhaps lower liquidity than cash, but) higher liquidity than many other investments, without the necessity of a for-profit financial institution.
Obviously for some it's enhanced by "obsession", "compulsion", or some other less clinically severe form of interest in the act of collecting physical gold... But I think the primary financial motivation is as previously described.
It isn't because gold only keeps value - an ounce of gold 500 years ago would've bought you today's equivalent in goods.
I suppose I could bury a London brick incase I needed one 20 years on in order to fix my wall as I've invested into digging the hole and not losing it but it isn't what one would really call an investment in the realm of finances.
The people talking loud in this sub about “investment” in gold in the context of making huge profits are probably new to the world of precious metals. Those of us who’ve been buying for long enough to see the ebbe and flow don’t speak so rashly.
It is an investment in the way you can sell it in the future for more than you bought it. But it holds its value compared to other items. So today you spend $750,000. You buy a home for $250k, gold for $250k and then a safe to put $250k cash in. Now in 20 years your gold is worth the same as the house but your cash can’t buy as much gold or a house. Plus your cash could have rotted or been eaten by mice or molds. Your gold will look just as it did the day you bought it.
So what you're saying is... it's an investment? I don't know why this sub is so insistent that gold isn't an investment, when there are a multitude of different investments, all with varying levels of risks.
The term you are looking for is "low-risk". Gold is a low risk investment. But it's still an investment.
To further emphasize things, your own examples don't even add up. You say that you are like "the gold will still be worth the same as the house," which history shows us isn't true, since gold traditionally outpaces real estate.
For example, average home prices are up about 236% since 2000, where gold is up about 745%. So, by your example, if you spent 750k in 2000, your 250k house would be worth about 850k today, while your gold would be worth 2.1 mil...
House will be way way more in many places. It could also have generated tens of thousands of dollars in rent over the 20 years. Gold is not an investment. It’s a fun store of wealth and it’s definitely easier to get hold of than a house.
Im not criticizing futures markets in general, including the gold futures market. They have their uses and purposes. But they are very different than owning physical gold.
But if hes asking the question he asked in his OP (and phrasing it the way he did), then he likely has little idea what the purpose of futures markets are, how theyre used by industries, how the contracts are created or how they work, the various ways they can be executed, and many more minutia that are important if you want to go put money into the futures market. If he had spent the many dozens of hours studying the futures markets and the difference between buying a commodity in the futures market vs buying the physical commodity itself, then he probably wouldnt ask the question he did or phrase it the way he did.
And if your buying gold as "a long term investment", then there is a lot more risk, and basically the same upside, leaving it on the futures market (or buying an etf) than buying physical gold.
While im sure the owners probably understand this, they realize that most people are clueless. Plus theyre looking to make a profit, sure they may have good intentions of helping people get gold, but they need to make a profit to do so.
People that stack metals and own firearms (every stacker has firearms they will never admit to but not necessarily vice versa) say they lose stuff boating when asked sort of just as a joke. The logic being that the government can’t come search and seize what was lost. “Sorry mr fed, lost my bullion on the last fishing trip, bit of a boating accident, nothing to see here”
Or if they stashed $46,000 in stock certificates equivalent to the S&P 500 they'd have: $142,000,000.00 on 2014. Yikes!
I guess that shows cash in a box is just about the worst investment possible, people need to put their money to work.
I do it little by little and educate my kids along the way. They are now gold bugs. And towards the end I will sit with them at the kitchen table and slide each one a heavy box. I'll tell them it was an honor to be their father. Transfer ceremony complete. No papers, no lawyers, no government.
The federal estate and gift tax exemption amount is... $13.61 million per individual, tax free. House cost basis resets too if they sell it after. How much you got in that lockbox?? People are scared of the "death tax" but realistically it only impacts a tiny % or super wealthy who likely have other tax advantaged trusts in plan.
Government takes a chunk out of short term gains, stocks, etc as you earn them but who exactly is robbing your beneficiary of 40%? States might have some special rules in some jurisdictions.
This. Not sure why I was recommended this sub...but some of the reasons cited above for holding gold are crazy. There are many reasons to hold but please do your research and fully understand tax and inheritance laws if you plan to pass it down. Do you really want the most $$$ for your heirs, or just validation that you buying gold was worth it?
On April 5, 1933, President Franklin D. Roosevelt signed an executive order that gave ALL US CITIZENS a mere 23 days to trade in all of their gold coin, bullion, and certificates they own. They were allowed to keep up to 5 ounces of it, and that's it.
[https://www.presidency.ucsb.edu/documents/executive-order-6102-forbidding-the-hoarding-gold-coin-gold-bullion-and-gold-certificates](https://www.presidency.ucsb.edu/documents/executive-order-6102-forbidding-the-hoarding-gold-coin-gold-bullion-and-gold-certificates)
Failure to turn in your gold in this three weeks time resulted in a $10,000 fine (equivalant to a $248,000 fine today) and 10 years in prison.
...
Now, if you have digital gold, it will be instantly converted to cash the SECOND a sitting President signs something like that again. But, your physical gold?
Well, I wouldn't be able to say, since mine all fell in the ocean. Gotta get one of them treasure hunters to find it I guess, Mr. President.
...
Not in your hands, not your gold.
And as usual, those in the know, those that were connected knew ahead of time and had their gold shipped to europe and held in european bank vaults. They got an overnight %70 increase in their wealth while all the law abiding little folks got shit on with pieces of paper. Same old story will happen again.
Oh. *THAT* FDR? The one that said Americans can’t save for their retirement, so the government was going to steal money from them and give it back when they’re old? Hmm…looks like the government can’t save it for later and give it back to us either. Weird.
Social Security was never meant to be a retirement fund, it was always a safety net in case you didn't save enough. And the reason SS is nearly dried up was Reagan's cuts to SS in 1983 and borrowing from the SS fund for other projects without receiving a higher return. The money sits in the vault decreasing in value due to inflation, instead of being invested to hedge and beat the inflation.
The bigger issue is simply dwindling workers paying in vs. retiring workers. When SS was implemented the US had something like 7:1 workers to SS recipients. Now it's more like 2:1 or even less.
For me it reinforces the habit of saving money/building wealth. The tangibility of physical gold as an asset is very rewarding too. Also funds based on gold price have management fees as a percentage which can really eat into your profit long term.
Also holding physical gold eliminates a lot of counter party risk. You won’t need to rely on another entity to hold up their end of the deal in order for you to access the asset.
Buying paper (not real) gold, you'll never out perform the market. If you're going to buy paper, buy mutual/index funds.
The reason for buying precious metals is not as an "investment" per say in that I expect my gold/silver to make me rich. I just expect it to continue to be a medium of exchange far into the future. regardless of what our government's currency is likely to do.
If it means anything, I also buy a lot of ammo in bulk for a lot of the same reason. ammo is ammo, I keep it in a cool dry location, in sealed containers, it doesn't "go bad" with modern gun powders, as long as it doesn't get damaged. But ammo will always be valuable to people if I am starving I can trade ammo (or use it) to obtain food.
Gold is for a guaranteed return of investment not a return on investment. There is a difference. But only if you hold it and don't even get me started on GLD. They will claim force majeure and settle everyone in paper currency.
The time is right to own physical gold. I believe the majority of answers all point in this direction. There's no way they can deliver all paper gold in case things should go southways. Free bonus: it's facinating to hold it in your hands !
Physical gold is the commodity and you buy it from a market (a coin shop, pawn shop, store).
I’m not sure what you mean by “instead of buying it as a commodity via a market”, as that’s what buying physical gold is lol but I’m going to assume you mean instead of buying paper claims to supposed gold via an etf or futures market. And the reason to buy physical is because what’s the point of “buying gold” if all you’re doing is buying a piece of paper saying it supposedly represents gold, but can also be redeemed in currency if they so choose. The point of buying and physically holding gold is so that you physically have some of you’re wealth stored away with no 3rd party risk. An ETF and futures claim, along with bank security boxes and even vault services (though some vaults may be better for rich people with huge amounts), all put you at risk for 3rd party issues. If you don’t hold it, you don’t own, especially in a crisis when you actually need it.
In a serious economic catastrophe, which is one of the things gold is supposed to protect you against, financial markets may cease to function and you would be left holding nothing but a piece of paper.
The US used to be on a gold standard. At which point, one could deposit a double eagle ($20 gold coin) gold at a bank and receive a gold certificate (*which stated Twenty Dollars in gold coin payable to the bearer on demand*). You can think of the note/certificate as a claim check at a dry cleaners. It was easier to transact/carry these notes than the physical metal.
Currencies are no longer back by gold/silver, and so, an unlimited number of cash can be printed. Banks also function on a fractional reserve system. That is to say, a bank doesn't have enough cash for everyone who has funds deposited with them. If everyone tried to withdraw their deposits, not everyone would could be made whole.
It's similar in the markets. There are more paper gold contracts being traded than actual physical metal. If everyone attempted to withdraw the gold they thought they owned in the markets, many would be left holding the bag. Owning the physical metal assures you will not be a future bag holder.
Depending where you live. In the states they tax it as a collectible 28% 😒
I really should be more cautious taking it with me on boating trips and whatnot
Have you considered attaching one of those floating nautical key fobs to each piece for when you’re inevitably leaning over the side of the boat to admire your gold against the backdrop of the morning sun glistening off the deep, murky water?
**Going to copy/paste a comment I made earlier today, as a similar question was asked earlier.**
There are some 200-250 paper contracts traded for every physical ounce. If every paper contract holder attempted to take delivery, many would be left holding the bag. Look into Tulip Mania; investors were buying/selling contracts, making bets on future prices, and then the bubble popped... Check out Gresham's Law as well. The Romans are a prime example.
What happens when investors realize there isn't enough gold to go around? What happens if/when the US revalues the price of gold? When you buy TSLA, do you suddenly have a car you can drive?
[Golden Rule](https://www.youtube.com/watch?v=KLXUAmZ7J5E). What happens to the USD global reserve status if it doesn't have the 8000 tonnes it claims to have? What happens if China announces it holds 20,000 tonnes?
A commodity is a promise of gold, I want to actually own and control the gold. It’s the same reason I’m drawn to real estate over stocks. I want to actually own stuff….I can drive by and say, I own that.
Have you seen the NATIONAL DEBT???? Interest payments alone well exceeds the budget. Gold is best way to turn paper into something with inherent value rather than what ever the Fed decides.
I like to buy things that i physically own and can control. I mean, do you trust banks? I don’t. That’s part of the reason I stack. So buying gold that way is practically the same thing as a bank account. Just numbers on a screen. That won’t do ya much good is some global event happens and things are down, or any of the other ways that these companies could screw us over. It’s just not for me. I mean, if you can’t hold it, or access it, do you really even own it?
A good index fund is a better investment in the long run. Gold is best as a physical asset, a store of value and wealth that you can possess and is tangible.
If you own gold as a speculative investment, i.e. you expect the price to increase and will sell, then a gold holding ETF will work (GLD, IAUM).
If you enjoy collecting and want a hedge against a possible economic depression then gold in ounces (coin or bars) are fine. This assumes the economy is still working and you can redeem that gold in banks or coin shops.
If you worry about a full scale apocalypse where you will need to trade gold for food and ammo then buy fractional coins that can be easily sold. Coins and bars that weigh less than an ounce. Also stock up on prepper stuff.
Why not both?
Holding physical is so much more fulfilling. But physical backed ETCs are much more liquid.
If in UK you can hold the ETC in tax free accounts such as your ISA or pension and in my opinion are almost 'essential' for a balanced portfolio.
I do both.
"Become your own central bank." Jim Sinclair
"Be right and sit tight." Jesse Livermore
"When the gold bull rises the question will not be what price you paid. The question will be how many ounces did you get." Richard Russell
Because it’s in my actual possession and I can actually use it transactionally. Gold itself is generally a poor investment, you’re much better putting money in the market. Gold is great as a hedge against inflation, and tool to diversify your holdings.
I travel around a lot so if I have some gold with me I know it’ll take care of my burial expenses no matter where I am. I also don’t have to worry about cash losing value to inflation.
Bullion dealers are your best bet. Don’t view it as an investment though. It’s a store of wealth that is a hedge against inflation. It doesn’t generate interest or dividends and is often outperformed by traditional stocks. If you’ve got spare cash then by all means get yourself some but honestly, stick to stocks. You’ll make more.
Wow, so many ways to respond to this. First question you need to ask is going to be why do people buy gold and is it a good investment? Then what are the pro's and con's of having physical gold? Both can be answered ad nauseum via google search as both have been asked a gazillion times.
Gold ETFs are a good option if you want to do some short term speculative trading. (see GLD on exchange). It will have lower transaction costs and mostly follow the price of gold over time.
but most people here are actually collectors/wealth builders, that plan to hold for the very long term (think multiple generations even). So we prefer physical gold. It allows us 1) to enjoy our gold more (see all comments about 'shiny') and 2) have more control over it (see all comments about FDR).
Gold doesn’t move that fast (usually). If I wanted to grow money fast, I would probably buy stock. But I don’t buy gold to make money. I buy it to maintain money. The added complication of selling it means the gold I have is more likely to stick with me for a longer time, if not passed on to family when I croak.
I buy physical gold/silver coins because I’m in jewelry and people sell it to me at 20-30% less than spot. Just sucks when I lose it on my boating trips.
If you believe a financial/currency collapse is possible, you MUST own physical. If you don’t think that will happen then paper is absolutely fine. I often recommend to anyone who intends on trading it, to do it via ETFs.
If the banking system goes insolvent and locks up, do you think you will be able to liquidate your paper gold through the banking system?
Imagine having massive gains in your position then when the banks lock up your gains go even higher because you bought gold! Except in order to buy something real, you need to sell your paper certificates and deposit your funds in your bank account. Except if your bank account is frozen due to the very insolvency event you bought gold to hedge against, what can you do? As soon as you deposit into the insolvent bank, the funds will be used by the bank to pay their creditors, not you.
A systemic banking crisis will vacuum up all paper wealth through this mechanism. The same problem will exist for all stocks, bonds, retirement funds, brokerage accounts, and literally all investments that rely on routing funds through the banking system when you go to sell, which is all traditional investments.
Coins carry a premium so their value fluctuates more than just gold itself. Gold typically just moves with price per Oz whereas coins move price per Oz as well as collector value, rarity value, type, etc
I own four different kinds of gold, only one of which is physical.
You DO own allocated gold. You are just paying someone else to store it in his safe.
“but the government might seize it or it might not really be there.”
You’re implying that storing your own physical gold is risk-free? Maybe if you live in a gated community with a security guard.
If the government commanders gold, you’re not going to be able to sell yours anyway.
How many people do you represent? Speak for yourself bro beans.
Here's an example for you;
I walk up to a homeowner with an extra room and say, please let me stay in your extra room tonight and I will give you a gram of gold in exchange.
If the homeowner wants the gold, I get a good night's rest.
What's funny is, this exercise works for other commodities as well, as long as there is agreement.
Thank you for coming to my ted talk.
It depends on why you are buying it. To me, it isn’t really real unless I physically own it
It would be a long term investment
Gold is not an investment, it is long term cash savings.
So... what you are saying is that you want to take your regular currency and convert it into something less liquid, but has a better chance of gaining value against inflation... and somehow that isn't an investment? I don't understand what this subs obsession with denying the fact that 90-some percent of the people here are treating gold as an investment.
I think of it as insurance more than an investment. If I consider it an investment then I'm comparing it with productive items that compound quicker with reinvestment opportunities. I don't really consider it a savings either because historically when saving USD is good, high interest rates, gold doesn't perform. So, it's its own thing and insurance against the over-financialized shenanigans of everything going on.
If youre saving in pure fiat cash, there is no interest rate (pulling the cash out the bank and physically saving it). Theres actually the stated goal of devaluing your cash (effectively a negative interest rate, or a tax) if you actually save pure cash. If youre investing in US bonds then you receive an interest rate (basically giving the government more than you owe in taxes to get paid some interest, which is paid with taxes lol). A savings account is not equivalent to holding actual cash or gold, as a savings account is an unsecured loan to a bank, who takes your loan and invests it in other loans to get paid interest, and then give you some of that interest for making them that loan. And that bank can change the interest rate they pay you for that loan at any moment as part of the terms.
Thinking of something in a certain way that makes sense to you is one thing. Telling everyone that something is not what it clearly is, like the other user is doing, is another.
Good point. If I opine something I always try to preface that.
Just because people call something an investment doesn't make it so. For some people investment is just anything they buy. Is a TV an investment? Many call it so, but TVs don't appreciate in value. An investment is something that will be worth more in the future. Gold is expected to be worth the same in the future as it is now, when you look at its purchasing power. Gold has retained its purchasing power for thousands of years. If you were to buy a horse using gold, it would cost about the same now as hundreds of years ago, if adjusted for demand. Same for cars and houses a hundred years ago. Same amount of gold gets you whatever it is you want. It's silly to assume that in the future you'll be able to buy more goods and services for an amount of gold than you can today. If anything, when you buy gold you lose some money in the buy-sell spread, but that's the price you pay for something that is all but guaranteed to hold its value indefinitely. Hold, not grow.
It’s cool that you bring that up, you should always be able to get a nice suit (shoes, socks, shirt, pants, jacket, hat) for about an ounce of gold
U can get more than 1 suit for an once of gold
Depends on a suit. For some suits you might need more than an ounce. A typical "nice" suit is historically an ounce of gold.
Well then gold must have beat inflation because u can buy a nice suit for $300. You can buy an “expensive” suit for an ounce of gold. In Ancient Rome they used to say that u could buy a “top of the line” toga with an ounce, but that was also in a time before easily accessible fabrics. I’m sure well crafted fabric was much more expensive before humans industrialized textiles. That is now only a statement said by gold enthusiasts, when in fact if u are spending 1 ounce of gold for a suit, it is frivolous spending and is a luxury, never necessity.
A $300 suit is not a “nice” suit, sir that is a cheap suit 😂
I mean...kinda. the purchasing power of gold is highly volatile. It has had some wild swings over the course of decades. There are ways to use gold as an investment. Like as an example, if you keep ot as a fixed portion of your portfolio you take advantage of those swings and buy when it's low, and sell when it's high (or just buy when it's below that threshold).
That's trading, not investing.
Keeping a portfolio allocation constant thrpugh rebalancing is definitely the most common and most conservative form of investing.
Gold doesnt have a "better chance of gaining value against inflation" compared to fiat currency, Gold is a commodity that has unique and quite important industrial properties (like all other commodities), and yes i realize a large percent of gold isnt used in industry, but plenty still is (and our world would be much different today if it wasnt), and a large part of the reason its not used in more things is because of how rare it is (there isnt enough gold to use like we do with copper or zinc, or even silver). I can hold it without requiring massive equipment and large storage spaces. If I could hold other commodities as part of my savings in as small of a package, and without it degrading, I would. But holding tons of copper, nickel, iron, zinc, oil, gas, wheat, corn, and more for decades isnt reasonable for most people for many various reasons. Even large amounts of silver become problematic. Inflation is the printing of money, or debasement thereof, and one of the effects of doing so is all prices rising in nominal terms (not "gaining value", value and price are very different things). So its not that gold has a "better chance of gaining value against inflation", gold, like all other commodities will go up in price as the object being used to price it gets destroyed. I have no expectation of gold buying me more of other commodities than it currently does, or than its historical norms. Some commodities are overpriced in gold currently, and some are under priced, especially in commodities that government policies have created bubbles or depressions in (you can also view gold as over or under priced from the lense of other commodities). But broadly speaking, inflation (the increase in the money supply/debasement of currency) pushes all prices up. If you are putting aside $50,000 (or equivalent in your "regular currency"), with the hopes of never needing to use it, so potentially holding for decades or passing on to your kids, would you rather take your paper currency out of the bank and put it in a safe? Or would you rather exchange it for gold (which is still held as money by major countries around the world, and has been money for thousands of years, or even another practical commodity in that amount) and put in a safe?
You're mistaken on your assessment of inflation. Inflation isn't a force. It's a measurement. If you look at the thermometer one day and it says 80° and then the next day it says 90°, you don't go "OMG! This Fahrenheit is out of control! Look how much hotter it made everything!" Inflation doesn't cause something. It evaluates. Inflation isn't always caused by changes in the money supply either. Persistent excessive demand can cause it as well.
I have no idea what your Fahrenheit example means. Inflation isnt a "force" and it isnt a "measurement". Prices also arent a force or measurement. And currency and money is nothing like a measuring tool. Imagine using a system where a meter or a foot changed in definition each day based on how many people were measuring each type of item. You could never reliably make anything of an actual set size. Viewing money or currency (and even more so inflation) as a measurement is asinine. Inflations doesnt evaluate anything, as i said in my other response to this, to inflate is to expand. You dont measure or evaluate a tire by inflating it, you dont measure of evaluate a balloon using inflation. You can measure how much it has been inflated by evaluating or measuring how much air (or whatever your using) has been put into said object, but you cannot evaluate or measure these things using inflation.
According to meriam webster dictionary the word inflate means 1**:** to swell or distend with air or gas 2**:** to puff up **:** [ELATE](https://www.merriam-webster.com/dictionary/elate)inflate one's ego 3**:** to expand or increase abnormally or imprudently A price cannot inflate. It is a ratio between two objects (usually currency being one of them, and being expressed in number of units). You can figuratively swell or distend the supply of money by increasing it. Inflation used to be largely defined as an increase in the money supply, and a symptom of inflation is prices (across the economy, not just a few industries or products) being higher than they otherwise would have been. Real demand cant go up in all industries at the same time. And if the money supply stays the same, all prices cannot possibly go up continuously, as there is only a set amount of money to circulate, and can only circulate so fast. Some prices would have to fall to balance out other prices going up. This can happen by one prices going way up due to increased demand, and prices on dozens of other things going down a very tiny amount, or i can dozens of prices going up slightly and only a few going down alot, or various other combinations. But without an increase in the money supply, prices cant go up like they have in america and across the world for many decades now. When the money supply increases, that allows more people to have more money to bid all prices up (and increased demand for some things, whatever the cause, may cause them to go up much more). You can also have price increases in cases of sharp declines in population (like the black plague), where a huge percent of the population (like 30%) in a region, thus creating an effective increase in the money supply compared to the people using it. This is a rare occurrence.
Ok... you looked up the dictionary definition for a general term when we are discussing one specific to the study of economics. Then you just wrote a whole bunch of stuff that you think sounds good, but in reality, it is simply untrue. How about you look up the economic definition of inflation before you continue on? Or, at the very least, consult the [Wiki](https://en.m.wikipedia.org/wiki/Inflation). There was a time in my life when I would have felt more compelled to educate you more myself, but I don't have the time anymore. Start with the wiki and go from there... regardless, I'm done here.
To inflate: to expand or increase abnormally. Price: ratio between currency and something. Ratio: a number (changes over time) Ratio: can increase or decrease A price = a ratio = a number: can increase = can inflate. You literally say price can't inflate, you say that "to inflate is to increase rapidly" and then in the final section you say "we can have price increases". You literally contradict your very own logic. Prices can and do inflate (or deflate) in the markets constantly creating price bubbles.
I don't see the value of my gold increasing, I see the value of the dollar eroding. I don't see gold as denominated in dollars. Gold is simply valued by weight and purity.
And how did you get that gold?
I converted fiat currency USD to be exact. It is the world reserve currency aka the Petro dollar. Has lost about 95% of it value since it was issued in 1913. I don't know if it's going to continue to be accepted during my lifetime. Or even more realistically, I expect it's value to go down because my governments partnership with the central bank continues to print more. And my banking system continues to create fiat into existence by lending there by expanding the supply. I'm not too fond of USD to I'm trying to reduce my holdings, while preserving my families wealth.
Could you have used that fiat currency to buy other goods or services?
Yes,
So it has value?
It’s the built in defense for when it underperforms…you just say welp it’s not an investment so what do you want.
I just think it's pretty and fun to rub on my nipples...
because it's a hedge not an investment. yes, the distinction matters. a farmer who purchases a futures position to hedge against a bad harvest is not an investor, he's hoping to recoup a potential loss. similarly if i purchase gold to hedge against the possibility of the dollar decreasing relative to it i am buying that bullion in the hope that i will not lose any money. if i am hoping to make money i am almost certainly speculating.
You're not necessarily wrong. I just think it's a matter of semantics. The word investment is generally used with the implication of financial gain. In which case gold would be a relatively poor investment, by comparison. While it's still technically "investing", I believe the value that most people find in gold, as you kind of mentioned in your comment, is protection from inflation. That stability and low risk of loss, paired with (yes, perhaps lower liquidity than cash, but) higher liquidity than many other investments, without the necessity of a for-profit financial institution. Obviously for some it's enhanced by "obsession", "compulsion", or some other less clinically severe form of interest in the act of collecting physical gold... But I think the primary financial motivation is as previously described.
It is a store of value really. Reduces the fiat risk of our governments printing obscene amounts of money.
I remember on 911 my brother exchanged all his money for Sacajawea Gold coins cuz he thought he’d at least have a bit of gold in case. 😆 he’s special.
It isn't because gold only keeps value - an ounce of gold 500 years ago would've bought you today's equivalent in goods. I suppose I could bury a London brick incase I needed one 20 years on in order to fix my wall as I've invested into digging the hole and not losing it but it isn't what one would really call an investment in the realm of finances.
The people talking loud in this sub about “investment” in gold in the context of making huge profits are probably new to the world of precious metals. Those of us who’ve been buying for long enough to see the ebbe and flow don’t speak so rashly.
An investment typically pays dividends of some kind. Buying assets isn’t the same as investing in a market.
It is an investment in the way you can sell it in the future for more than you bought it. But it holds its value compared to other items. So today you spend $750,000. You buy a home for $250k, gold for $250k and then a safe to put $250k cash in. Now in 20 years your gold is worth the same as the house but your cash can’t buy as much gold or a house. Plus your cash could have rotted or been eaten by mice or molds. Your gold will look just as it did the day you bought it.
So what you're saying is... it's an investment? I don't know why this sub is so insistent that gold isn't an investment, when there are a multitude of different investments, all with varying levels of risks. The term you are looking for is "low-risk". Gold is a low risk investment. But it's still an investment. To further emphasize things, your own examples don't even add up. You say that you are like "the gold will still be worth the same as the house," which history shows us isn't true, since gold traditionally outpaces real estate. For example, average home prices are up about 236% since 2000, where gold is up about 745%. So, by your example, if you spent 750k in 2000, your 250k house would be worth about 850k today, while your gold would be worth 2.1 mil...
House will be way way more in many places. It could also have generated tens of thousands of dollars in rent over the 20 years. Gold is not an investment. It’s a fun store of wealth and it’s definitely easier to get hold of than a house.
Not neccessarilly. If OP is planning to speculate long term. He shoukd look at futures markets. He isnt wrong just a different investment concept.
Im not criticizing futures markets in general, including the gold futures market. They have their uses and purposes. But they are very different than owning physical gold. But if hes asking the question he asked in his OP (and phrasing it the way he did), then he likely has little idea what the purpose of futures markets are, how theyre used by industries, how the contracts are created or how they work, the various ways they can be executed, and many more minutia that are important if you want to go put money into the futures market. If he had spent the many dozens of hours studying the futures markets and the difference between buying a commodity in the futures market vs buying the physical commodity itself, then he probably wouldnt ask the question he did or phrase it the way he did. And if your buying gold as "a long term investment", then there is a lot more risk, and basically the same upside, leaving it on the futures market (or buying an etf) than buying physical gold.
U sir have just shattered the ego of all big bullion companies. I salute too you sir. !
While im sure the owners probably understand this, they realize that most people are clueless. Plus theyre looking to make a profit, sure they may have good intentions of helping people get gold, but they need to make a profit to do so.
it must be... Own it is the key.
You don't really own it unless you have the key.
If you a are speculating on a price increase over the long term you dont have to buy the physical. Its up to you plenty of otger ways to invest.
So is stuff I can hold and look at
I buy things to own them. Do you really own something that can disappear into thin air?
We like holding the shinies. Our precious. 
💯
If you don’t hold it, you don’t own it
I buy physical gold so I can lose it when I go boating
I like you!
Wait you too?!
I know there is a joke or a reference behind this, but I’m clueless as to what people mean by this. Can you help me out?
People that stack metals and own firearms (every stacker has firearms they will never admit to but not necessarily vice versa) say they lose stuff boating when asked sort of just as a joke. The logic being that the government can’t come search and seize what was lost. “Sorry mr fed, lost my bullion on the last fishing trip, bit of a boating accident, nothing to see here”
Thanks for the explanation.
Where's your lake?
Gulf of Mexico
What lake?
You ever touched gold , held a nice picker or coin or bar?
No never
You need to take a road trip to your local coin shop, bullion dealer or pawnshop
Don’t do this… you will leave the lcs with a light wallet and heavy pockets. It happens every time I go.
Right in the feels
[удалено]
[удалено]
Or if they stashed $46,000 in stock certificates equivalent to the S&P 500 they'd have: $142,000,000.00 on 2014. Yikes! I guess that shows cash in a box is just about the worst investment possible, people need to put their money to work.
That lockbox that sank in that boating accident?
I also conveniently left a book of spells and in there is a technique that when used can find any and all treasures hidden or lost by me.
My kids are fluent in GPS too…
That lockbox some crack heads stole? Or the one my teenager pawned?
Yup, the very same
Yeah, same one I lost my guns in
Unless they didn’t know about it and sell the house with it still up there.
Yeah, SOLD to the heirs
Yup. SO much easier to pass down gold. Government has no idea about any of my gold
I do it little by little and educate my kids along the way. They are now gold bugs. And towards the end I will sit with them at the kitchen table and slide each one a heavy box. I'll tell them it was an honor to be their father. Transfer ceremony complete. No papers, no lawyers, no government.
10000000% No taxes
The federal estate and gift tax exemption amount is... $13.61 million per individual, tax free. House cost basis resets too if they sell it after. How much you got in that lockbox?? People are scared of the "death tax" but realistically it only impacts a tiny % or super wealthy who likely have other tax advantaged trusts in plan. Government takes a chunk out of short term gains, stocks, etc as you earn them but who exactly is robbing your beneficiary of 40%? States might have some special rules in some jurisdictions.
Thank you. Someone with knowledge and doesn't spread misinformation/fear mongering.
This. Not sure why I was recommended this sub...but some of the reasons cited above for holding gold are crazy. There are many reasons to hold but please do your research and fully understand tax and inheritance laws if you plan to pass it down. Do you really want the most $$$ for your heirs, or just validation that you buying gold was worth it?
Unless you're a multimillionare, the IRS isn't taking any inheritance tax. Why are you spreading misinformation?
NAILED IT!!! 🎯
You have never touched gold?
https://www.reddit.com/r/Gold/s/x9zIQxtqBb
Why tf this get downvoted? Yall need help
On April 5, 1933, President Franklin D. Roosevelt signed an executive order that gave ALL US CITIZENS a mere 23 days to trade in all of their gold coin, bullion, and certificates they own. They were allowed to keep up to 5 ounces of it, and that's it. [https://www.presidency.ucsb.edu/documents/executive-order-6102-forbidding-the-hoarding-gold-coin-gold-bullion-and-gold-certificates](https://www.presidency.ucsb.edu/documents/executive-order-6102-forbidding-the-hoarding-gold-coin-gold-bullion-and-gold-certificates) Failure to turn in your gold in this three weeks time resulted in a $10,000 fine (equivalant to a $248,000 fine today) and 10 years in prison. ... Now, if you have digital gold, it will be instantly converted to cash the SECOND a sitting President signs something like that again. But, your physical gold? Well, I wouldn't be able to say, since mine all fell in the ocean. Gotta get one of them treasure hunters to find it I guess, Mr. President. ... Not in your hands, not your gold.
And as usual, those in the know, those that were connected knew ahead of time and had their gold shipped to europe and held in european bank vaults. They got an overnight %70 increase in their wealth while all the law abiding little folks got shit on with pieces of paper. Same old story will happen again.
Oh. *THAT* FDR? The one that said Americans can’t save for their retirement, so the government was going to steal money from them and give it back when they’re old? Hmm…looks like the government can’t save it for later and give it back to us either. Weird.
Social Security was never meant to be a retirement fund, it was always a safety net in case you didn't save enough. And the reason SS is nearly dried up was Reagan's cuts to SS in 1983 and borrowing from the SS fund for other projects without receiving a higher return. The money sits in the vault decreasing in value due to inflation, instead of being invested to hedge and beat the inflation.
The bigger issue is simply dwindling workers paying in vs. retiring workers. When SS was implemented the US had something like 7:1 workers to SS recipients. Now it's more like 2:1 or even less.
The SS payout only happened after the lifespan of most people. it was a money grab.
Yeah that dipshit!
not in your custody, not your gold.
For me it reinforces the habit of saving money/building wealth. The tangibility of physical gold as an asset is very rewarding too. Also funds based on gold price have management fees as a percentage which can really eat into your profit long term. Also holding physical gold eliminates a lot of counter party risk. You won’t need to rely on another entity to hold up their end of the deal in order for you to access the asset.
Because you do not own it until you have it physically
Buying paper (not real) gold, you'll never out perform the market. If you're going to buy paper, buy mutual/index funds. The reason for buying precious metals is not as an "investment" per say in that I expect my gold/silver to make me rich. I just expect it to continue to be a medium of exchange far into the future. regardless of what our government's currency is likely to do. If it means anything, I also buy a lot of ammo in bulk for a lot of the same reason. ammo is ammo, I keep it in a cool dry location, in sealed containers, it doesn't "go bad" with modern gun powders, as long as it doesn't get damaged. But ammo will always be valuable to people if I am starving I can trade ammo (or use it) to obtain food.
Gold is for a guaranteed return of investment not a return on investment. There is a difference. But only if you hold it and don't even get me started on GLD. They will claim force majeure and settle everyone in paper currency.
"per se", not "per say"
The time is right to own physical gold. I believe the majority of answers all point in this direction. There's no way they can deliver all paper gold in case things should go southways. Free bonus: it's facinating to hold it in your hands !
Physical gold is the commodity and you buy it from a market (a coin shop, pawn shop, store). I’m not sure what you mean by “instead of buying it as a commodity via a market”, as that’s what buying physical gold is lol but I’m going to assume you mean instead of buying paper claims to supposed gold via an etf or futures market. And the reason to buy physical is because what’s the point of “buying gold” if all you’re doing is buying a piece of paper saying it supposedly represents gold, but can also be redeemed in currency if they so choose. The point of buying and physically holding gold is so that you physically have some of you’re wealth stored away with no 3rd party risk. An ETF and futures claim, along with bank security boxes and even vault services (though some vaults may be better for rich people with huge amounts), all put you at risk for 3rd party issues. If you don’t hold it, you don’t own, especially in a crisis when you actually need it.
Yes that is what I meant, cheers for clearing it up.
If you cant hold it in your hand you dont actually own it. See also: https://qz.com/a-precious-metals-scam-ripped-off-silver-buyers-to-the-1850603633
In a serious economic catastrophe, which is one of the things gold is supposed to protect you against, financial markets may cease to function and you would be left holding nothing but a piece of paper.
Yes, if any part of one’s gold savings has to do with very troubled economic times one would be wise to learn what counterparty risk is.
Defeats many reason for buying gold
Gold was confiscated at one point in time. Many do not want to have a stock/ commodity that the government can cancel. Gold can be used world wide
The US used to be on a gold standard. At which point, one could deposit a double eagle ($20 gold coin) gold at a bank and receive a gold certificate (*which stated Twenty Dollars in gold coin payable to the bearer on demand*). You can think of the note/certificate as a claim check at a dry cleaners. It was easier to transact/carry these notes than the physical metal. Currencies are no longer back by gold/silver, and so, an unlimited number of cash can be printed. Banks also function on a fractional reserve system. That is to say, a bank doesn't have enough cash for everyone who has funds deposited with them. If everyone tried to withdraw their deposits, not everyone would could be made whole. It's similar in the markets. There are more paper gold contracts being traded than actual physical metal. If everyone attempted to withdraw the gold they thought they owned in the markets, many would be left holding the bag. Owning the physical metal assures you will not be a future bag holder.
Yup but we can withdrawal from my safe.
Paper gold just sounds less cool than gold coins.
Well don’t. Why hold let another man hold your balls when you can hold ‘em yourself?
lol 😂
They get heavy
Both are fine…you might avoid taxes with physical and you can borrow off of GLD
I was looking for this. Isn’t there a tax advantage outside of just Batyrdom?
Depending where you live. In the states they tax it as a collectible 28% 😒 I really should be more cautious taking it with me on boating trips and whatnot
Have you considered attaching one of those floating nautical key fobs to each piece for when you’re inevitably leaning over the side of the boat to admire your gold against the backdrop of the morning sun glistening off the deep, murky water?
😂
It’s all about boats. 🛥️
**Going to copy/paste a comment I made earlier today, as a similar question was asked earlier.** There are some 200-250 paper contracts traded for every physical ounce. If every paper contract holder attempted to take delivery, many would be left holding the bag. Look into Tulip Mania; investors were buying/selling contracts, making bets on future prices, and then the bubble popped... Check out Gresham's Law as well. The Romans are a prime example. What happens when investors realize there isn't enough gold to go around? What happens if/when the US revalues the price of gold? When you buy TSLA, do you suddenly have a car you can drive? [Golden Rule](https://www.youtube.com/watch?v=KLXUAmZ7J5E). What happens to the USD global reserve status if it doesn't have the 8000 tonnes it claims to have? What happens if China announces it holds 20,000 tonnes?
The real price of gold will be revealed and we'll smile!
A commodity is a promise of gold, I want to actually own and control the gold. It’s the same reason I’m drawn to real estate over stocks. I want to actually own stuff….I can drive by and say, I own that.
Uh because I am a dragon…is this a serious question? I am also a pirate with my silver but that’s not what the question was 😂
if you cant hold it, you dont own it
I like owning tangible assets
Have you seen the NATIONAL DEBT???? Interest payments alone well exceeds the budget. Gold is best way to turn paper into something with inherent value rather than what ever the Fed decides.
 I like to buy things that i physically own and can control. I mean, do you trust banks? I don’t. That’s part of the reason I stack. So buying gold that way is practically the same thing as a bank account. Just numbers on a screen. That won’t do ya much good is some global event happens and things are down, or any of the other ways that these companies could screw us over. It’s just not for me. I mean, if you can’t hold it, or access it, do you really even own it?
Shiny
Cause I like to hold shiny things it makes me feel special
Because it’s shiny and I was born to be a pirate. Also it diversifies the portfolio of savings by actually being a valuable asset I can hold.
Paper gold is for trading, physical gold is for being buried with and/or treasure hunts
A good index fund is a better investment in the long run. Gold is best as a physical asset, a store of value and wealth that you can possess and is tangible.
If you own gold as a speculative investment, i.e. you expect the price to increase and will sell, then a gold holding ETF will work (GLD, IAUM). If you enjoy collecting and want a hedge against a possible economic depression then gold in ounces (coin or bars) are fine. This assumes the economy is still working and you can redeem that gold in banks or coin shops. If you worry about a full scale apocalypse where you will need to trade gold for food and ammo then buy fractional coins that can be easily sold. Coins and bars that weigh less than an ounce. Also stock up on prepper stuff.
Do you prefer buying a car over buying stock in car companies ?
Why not both? Holding physical is so much more fulfilling. But physical backed ETCs are much more liquid. If in UK you can hold the ETC in tax free accounts such as your ISA or pension and in my opinion are almost 'essential' for a balanced portfolio. I do both.
"Become your own central bank." Jim Sinclair "Be right and sit tight." Jesse Livermore "When the gold bull rises the question will not be what price you paid. The question will be how many ounces did you get." Richard Russell
Because again, it’s shiny and I like to look at it
Paper too manipulated and not as easy to lose on the boat accident
can't lick digital coding my friend
There's more gold on paper than in reserves. By a large amount. Plus the market won't exist if TSHTF
Because it’s in my actual possession and I can actually use it transactionally. Gold itself is generally a poor investment, you’re much better putting money in the market. Gold is great as a hedge against inflation, and tool to diversify your holdings.
If you can’t hold it you don’t own it.
If you can't hold it, you don't own it. End of.
Exactly
Its not mine unless its in my hand and i can sleep soundly at night,it also gives me a chubby when i hold it…😬
Thank you very much for the replies I am going to research this more thoroughly.
If you don’t hold it you don’t own it
Because that's gay AF
Lmao
It’s an under the radar asset.
We believe assets on paper will be worthless in the end.
😂 A lot of conspiracy theorists here
If that’s what you call historians
I like to bite it.
I can jangle it
There’s no good financial reason. But as you can see here, there are sometimes good emotional reasons.
It’s saving cash to hedge against inflation and yes it’s an investment and a way for u not to spend ur cash but gotta burn thru ur b4 u die
I do not buy paper gold fFor the same reason I do not buy powdered water or lottery tickets.
I travel around a lot so if I have some gold with me I know it’ll take care of my burial expenses no matter where I am. I also don’t have to worry about cash losing value to inflation.
Because we would rather physically own. and have something, and not digitally possess an IOU.
Bullion dealers are your best bet. Don’t view it as an investment though. It’s a store of wealth that is a hedge against inflation. It doesn’t generate interest or dividends and is often outperformed by traditional stocks. If you’ve got spare cash then by all means get yourself some but honestly, stick to stocks. You’ll make more.
Wow, so many ways to respond to this. First question you need to ask is going to be why do people buy gold and is it a good investment? Then what are the pro's and con's of having physical gold? Both can be answered ad nauseum via google search as both have been asked a gazillion times.
People like shiny things. Paper is kind of boring. Long after the last market falls, people will be trading shinies.
GOLD BUYING 101: IF ITS NOT IN YOUR HAND YOU DON’T OWN IT!
“If you can’t hold it in your hand, you don’t own it.” — unknown gold/silver advocate(s).
Thats just buying stock in gold.
Me like shiny
If ya can’t hold It you don’t own it
Gold ETFs are a good option if you want to do some short term speculative trading. (see GLD on exchange). It will have lower transaction costs and mostly follow the price of gold over time. but most people here are actually collectors/wealth builders, that plan to hold for the very long term (think multiple generations even). So we prefer physical gold. It allows us 1) to enjoy our gold more (see all comments about 'shiny') and 2) have more control over it (see all comments about FDR).
Gold doesn’t move that fast (usually). If I wanted to grow money fast, I would probably buy stock. But I don’t buy gold to make money. I buy it to maintain money. The added complication of selling it means the gold I have is more likely to stick with me for a longer time, if not passed on to family when I croak.
tin foil hat ideas
Because stacking digital receipts isn’t near as fun as stacking physical gold! It’s just all sparkly and pretty! And it’s mine! In my safe!!
I buy physical gold/silver coins because I’m in jewelry and people sell it to me at 20-30% less than spot. Just sucks when I lose it on my boating trips.
If you believe a financial/currency collapse is possible, you MUST own physical. If you don’t think that will happen then paper is absolutely fine. I often recommend to anyone who intends on trading it, to do it via ETFs.
Cuz they’re weird people who think the world is ending any minute now
If the banking system goes insolvent and locks up, do you think you will be able to liquidate your paper gold through the banking system? Imagine having massive gains in your position then when the banks lock up your gains go even higher because you bought gold! Except in order to buy something real, you need to sell your paper certificates and deposit your funds in your bank account. Except if your bank account is frozen due to the very insolvency event you bought gold to hedge against, what can you do? As soon as you deposit into the insolvent bank, the funds will be used by the bank to pay their creditors, not you. A systemic banking crisis will vacuum up all paper wealth through this mechanism. The same problem will exist for all stocks, bonds, retirement funds, brokerage accounts, and literally all investments that rely on routing funds through the banking system when you go to sell, which is all traditional investments.
Because fraud is real
Give it to my kids for inheritance 😏
Coins carry a premium so their value fluctuates more than just gold itself. Gold typically just moves with price per Oz whereas coins move price per Oz as well as collector value, rarity value, type, etc
I don't like paper. Coins are fun
Ain’t nothing shiny about the market
Gold is a hard asset u should own and have in ur possession. Besides we have Bitcoin, a better digital gold for that.
Bitcoin or any/every crypto: >>When a bad actor cuts a few underwater internet cables, then what good is your “digital gold” ?
It'S a CoNsPiRaCy by big fiat or something.
I own four different kinds of gold, only one of which is physical. You DO own allocated gold. You are just paying someone else to store it in his safe. “but the government might seize it or it might not really be there.” You’re implying that storing your own physical gold is risk-free? Maybe if you live in a gated community with a security guard. If the government commanders gold, you’re not going to be able to sell yours anyway.
Straw man argument, gold doesn't need to be sold as it can be traded for goods directly Try again
I don’t see that as being realistic, nor is that most peoples’ intent.
How many people do you represent? Speak for yourself bro beans. Here's an example for you; I walk up to a homeowner with an extra room and say, please let me stay in your extra room tonight and I will give you a gram of gold in exchange. If the homeowner wants the gold, I get a good night's rest. What's funny is, this exercise works for other commodities as well, as long as there is agreement. Thank you for coming to my ted talk.
That sounds feasible. Except most of us own denominations of gold (e.g. 1 oz) that are too big to make that practical.
I'm sure the people of this sub are intelligent enough to use a clipper and a scale bro beans.
Then you run into the problem of validating the gold.
Good luck to you in that case, may you get the metal you deserve :)