Gold is one of the largest financial assets in the world with an average daily trading volume of $183 billion, and its value has seen explosive growth in recent years.
At the start of 2000, gold was priced at just $460 per ounce when adjusted for inflation. By August 2021, that number had ballooned to roughly $1,815 per ounce.
But not all investors are in love with gold. Warren Buffett has spoken out numerous times on his doubts, calling it an asset with “no utility.”
“It doesn’t produce anything and that’s why from a long-term perspective, it’s a hard asset to invest in,” Odyssey Capital Advisors chief investment officer Jason Snipe said. “It’s prudent portfolio management to have maybe a small allocation there but this is not an asset that you want to be heavily entrenched into if you’re looking for long-term yield.”
Since 2011, the S&P 500 has returned more than 16% on an annualized basis. The annualized return for the 10-year Treasury note sat at just over 2% in that time period. Gold, meanwhile, has fallen slightly over the past 10 years.
“Early on, you see strong performance, strong return or yield from commodities such as gold. Generally, as we move into a different cycle, gold is not as great a performer as we move into a normalized environment,” Snipe said.
Whether gold is an effective hedge against market volatility is also widely debated among experts.
“Gold is not necessarily a perfect hedge against inflation but it can be a strategic hedge against inflation,” according to Suki Cooper, executive director of precious metals research at Standard Chartered Bank.
“Various studies have shown us that if gold is held for 12 to 18 months before inflation takes higher and then it’s held for an additional 12 to 18 months while inflation moves higher, it can be a good inflation hedge,” Cooper said. “But if it’s just bought for a short period, let’s say a month, it may not prove to be an effective inflation hedge.”
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Is Gold A Good Investment?…(read more)
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Gold has been a reliable form of investment for centuries, and it’s easy to understand why. Gold is a tangible asset that is not subject to the fluctuations of stocks and bonds, and it is a safe-haven asset that provides protection against inflation and economic uncertainty.
Gold is a valuable asset that has been used as a form of currency for thousands of years. It is a tangible asset that is not subject to the fluctuations of stocks and bonds, and it is a safe-haven asset that provides protection against inflation and economic uncertainty. Gold is also a great hedge against currency devaluation, as it is not tied to any particular currency.
Gold is a good investment for those looking for long-term returns. It is a relatively stable asset that has a long history of performing well in times of economic uncertainty and market volatility. Gold prices tend to increase when the stock market is down, providing investors with a safe-haven asset to protect their portfolio.
Gold is also a good investment for those who want to diversify their portfolio. Gold can be purchased in physical form, such as coins and bars, or in the form of ETFs and mutual funds. Gold is a great way to diversify your investments, as it is not correlated to other assets and can provide a hedge against inflation and currency devaluation.
Gold is also a great way to protect your wealth against inflation. As the value of the dollar decreases, gold prices tend to increase, making it a great way to protect your wealth against inflation. Gold is also a great way to hedge against currency devaluation, as it is not tied to any particular currency.
In conclusion, gold is a good investment for those looking for long-term returns and those looking to diversify their portfolio. Gold is a tangible asset that is not subject to the fluctuations of stocks and bonds, and it is a safe-haven asset that provides protection against inflation and economic uncertainty. Gold is also a great hedge against currency devaluation, as it is not tied to any particular currency.
I know is best to invest in safe heaven assets cos profit level usually drops in these times, but I have been reading articles of people that were still able to gross heavy profit up to $580k during this crash…… what is the best strategy at this time
Super interesting. It's easy for the old Money Wizard to look down his nose on gold.
Warren Buffett has also invested heavily in re-insurance. With global warming, being in the insurance industry is risky.
hey guys, I don't know anything about investing and I'm looking to invest, any help? As well who can I reach out to?
I stopped watching at 1:09 that's all I wanted to hear.
Imagine needing a video to explain to you that fkn gold is a good investment =/
Buffett would have been on his ass in the street, flat broke in 2008 if his criminal pal Obama had not bailed him out. Oh yeah, some financial genius he is. If he is anti gold then I think I'll buy another ounce this week.
Stuped Idee paper always
Gone always also bitcoin same illusion Gold not
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The thing about gold that blows my mind is no one seems to realize what gives it 'perceived value'. Currency is the answer. Everyone says buy gold in case there is some kind of major crisis and currencies crash and are worth nothing, how would gold be 'valued' if currency no longer exists? I'm not even so sure it's rare or precious. If practically every person in existence has gold jewelry and probably a gold coin or two or more and then all the banks , coin shops, the gold/silver exchanges on every corner, jewelry stores and governments all have a bunch of gold and there is still more to be mined? How is that rare or precious? Same thing with diamonds, they're even a bigger joke.
how rare can gold be when there's tons of gold jewelleries all over the world for centuries lol
Really ? U call someone from e toro to talk about gold : ))) what should he say : ))) buy stocks on e toro and lose a lot but pay us comissions !
Why do people still think gold is an investment?? Warren doesn't think that. It's just a good hedge to PRESERVE wealth NOT create it. Expect no less from clueless mainstream news.
My grandfather had gold through the depression and what became "outlaw gold" later on. I just inherited it, whenever he needed it for trade no one wanted it. Mostly just a peace of mind investment for most people. It will never pay you anything though and when you need to exchange you're going to have a tough time when markets are down. You'll have to use a third party and get scammed out of most of your money.
Warren buffet won’t invest in gold cus he won’t be alive when it skyrockets
Warren buffet won’t invest in gold cus he won’t be alive when it skyrockets
Warren's tought seems like a click bait
Buffet can keep his paper gold and silver