As you are currently well aware - the economy and markets are cyclic. In the past decade the value of metal based commodities have soared. The price increase for gold has been phenomenal.
You hear advertisements on the radio all the time telling you that gold prices have soared to four times it's original value over the past 30 years.
While gold and other precious metals seem to have exploded in value - there would be no gold in your pot at the end of the rainbow since the value has not kept up with the cost of living. The investment would have been like treading water. The investment in gold would have essentially stagnated over the past 30 years compared to your average stock gains. Precious metals investing over the past 30 years has not yielded returns anywhere near those returned by the stock market.
Gold will always have value being that it is a rare commodity, just like diamonds. Gold and silver represent commodities whose value can stand the test of time.
People tend to fall back into gold and silver investments during times of economic crisis.During one of our major economic turndowns in the mid 1970s gold and silver prices rose over four hundred percent while stocks fell precipitously.Gold has appeared to hit a bubble during this latest economic downturn.The quick increase in gold and silver prices appear to come out of fear versus actual inflation, which reduces the benefit of precious metals investing.
Let's face it, over the long haul, precious metals are bad investments. Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. However you can get better returns in stocks and realestate. Gold and silver can be a better investment if you buy a mutual fund of gold or precious metals. - 31869
You hear advertisements on the radio all the time telling you that gold prices have soared to four times it's original value over the past 30 years.
While gold and other precious metals seem to have exploded in value - there would be no gold in your pot at the end of the rainbow since the value has not kept up with the cost of living. The investment would have been like treading water. The investment in gold would have essentially stagnated over the past 30 years compared to your average stock gains. Precious metals investing over the past 30 years has not yielded returns anywhere near those returned by the stock market.
Gold will always have value being that it is a rare commodity, just like diamonds. Gold and silver represent commodities whose value can stand the test of time.
People tend to fall back into gold and silver investments during times of economic crisis.During one of our major economic turndowns in the mid 1970s gold and silver prices rose over four hundred percent while stocks fell precipitously.Gold has appeared to hit a bubble during this latest economic downturn.The quick increase in gold and silver prices appear to come out of fear versus actual inflation, which reduces the benefit of precious metals investing.
Let's face it, over the long haul, precious metals are bad investments. Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. However you can get better returns in stocks and realestate. Gold and silver can be a better investment if you buy a mutual fund of gold or precious metals. - 31869
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