Gold...think its a good investment?

[rennigade]

Taken from bogleheads when someone was discussing gold as an investment. This was well said and wanted to share.

"Shortly after I started investing, gold went to over $1000 an ounce in 1980.

It then sank, steadily, down to about 350 dollars in the same time as the US stock market went up over 15 times. It then rallied, and got nearly to $2000 a couple of years ago, and is now back around $1200.

So in 25 years I would have made roughly 1.2x my money, with no dividends. Whereas my stocks would have gone up something like 15 times (taking the Dow from below 1000 to over 15000) *plus* say an average 3% per annum from dividends.

If gold is a good investment, it is taking a long time to show it."

[SavingSteve]

Taken from bogleheads when someone was discussing gold as an investment. This was well said and wanted to share.

"Shortly after I started investing, gold went to over $1000 an ounce in 1980.

It then sank, steadily, down to about 350 dollars in the same time as the US stock market went up over 15 times. It then rallied, and got nearly to $2000 a couple of years ago, and is now back around $1200.

So in 25 years I would have made roughly 1.2x my money, with no dividends. Whereas my stocks would have gone up something like 15 times (taking the Dow from below 1000 to over 15000) *plus* say an average 3% per annum from dividends.

If gold is a good investment, it is taking a long time to show it."

Did they buy more when gold was $350? They could have gotten a bargain on gold while all eyes were on the stock market.

Gold may be a speculative investment, but it's not the same as a company and it won't be worth zero like Enron was or go bankrupt. I think it has a place in a well diversified portfolio.

[Petunia 100]

I've never been a fan of gold as an investment. It doesn't do anything. You profit or lose based only on price speculation. No thanks.

[Jessicaemmy25]

I think it's ok to have some gold maybe put 3% of your money into it just as a safety in case things go south, it is pricey but that's why you buy during a dip, I mean the economy isn't as stable as we think and we could be in for some trouble in the future, just some food for thought

[mrpaseo]

I agree with a small percentage in a diversified portfolio. The percentage is determined on your individual situation.

I have a small hold in physical Silver and Gold (Not enough to fill a Safety Deposit Box). I keep track of the dollar cost average, add to it when it will bring it lower, sell when I can make a profit.

Kind of a side hobby.