Never saw myself buying gold ...

[nabikaw]

Hello all.

I never thought I would see this day. I am buying into gold. I think gold is a suck investment. It is too volatile, and physical gold (I am buying IAU) pays out nothing. Nope. Not for me. Never did it.

Until today. I do not view it as an investment. I view it as an insurance policy. There is too much stupidity going on at too many high levels. I plan on increasing my allocation to gold each month until I hit about 7.5% of my AA at year’s end.

I am hoping it turns out to be a suck investment. I can live with that.

On the other hand ...

(BTW, before people turn this into some stupid Mad Max/post-apocalypse scenario - that is not what I am worried about.)

Just now, nabikaw said:

Hello all.

I never thought I would see this day. I am buying into gold. I think gold is a suck investment. It is too volatile, and physical gold (I am buying IAU) pays out nothing. Nope. Not for me. Never did it.

Until today. I do not view it as an investment. I view it as an insurance policy. There is too much stupidity going on at too many high levels. I plan on increasing my allocation to gold each month until I hit about 7.5% of my AA at year’s end.

I am hoping it turns out to be a suck investment. I can live with that.

On the other hand ...

(BTW, before people turn this into some stupid Mad Max/post-apocalypse scenario - that is not what I am worried about.)

https://www.psucollegian.com/furtheringeducation/best-gold-ira-companies-for-rollovers/article_7f3ae5c6-2ee5-11ed-8f69-cba677c82fc1.html

thanks in advance for any help

[Thelonerangershorse]

Originally I bought gold in order to stop myself spending the money on junk, Yes, a 3D VR headset is a great toy, but how many times would I actually have used it?

A folding sceen phone would be cool for the one movie I watched on it.

These days, yes it's insurance against what's to come.

[Bratnia]

Gold (in your own hands) is money, yours, everything else is a loan. Sovereign states that print their own currency don't need to borrow - they can just print/spend more of it, that devalues all other notes in circulation, like a form of micro-taxation but nowadays pushed to extremes. Inflation = currency debasement = cost to hold/carry those notes. You might lend you dollars/pounds/whatever to the state/others and receive some interest, that's taxed (so a decrease in the actual amount of interest paid), broadly after inflation, interest taxation, costs your loan to others is inclined to yield nothing, may even cost you. When gold (and silver) were used as currency, the state had to pay a real rate of return in order to entice you to lend to it, since the Fed (1913) there's been a progressive transition to where the state no longer needs to borrow.

You're in the US and the US strives to dissuade you from holding gold, taxes it quite heavily compared to for instance the UK. Costs and taxes should be a consideration when looking at asset allocation choices.

[Abyss]

How can you be in the USA and think that physical Gold not a worthwhile investment. Like you mention it is not an investment it is an insurance policy and it is not a volatile investment (that would be BTC/ETH). It is in the American constitution that payment can only be made in Gold/Silver not fiat currency. You should always trust what has been written by the founding fathers than the current crop of politicians / financial advisors.

Next year planning on migrating to the states and I am really looking forward to stacking 1 oz Gold buffalo and buying 1 oz Gold maples and Britannia from 2.5% (you would have to buy 500 oz Gold to get a price 2.65% from a major UK bullion dealer) over spot from SD bullion...

[pricha]

Is gold volatile?  Its been a steady climber since I've bought it. It certainly doesn't keep me awake at night. On the occasional drop  just means i can afford to buy more .  

[martysov]

I only started buying gold as I'm stupid with my money. If it's sitting there I will buy something, so for me buying gold will mean I'm buying something that will hopefully one day give me something back 

[nabikaw]

On 16/06/2024 at 18:24, Bratnia said:

Gold (in your own hands) is money, yours, everything else is a loan. Sovereign states that print their own currency don't need to borrow - they can just print/spend more of it, that devalues all other notes in circulation, like a form of micro-taxation but nowadays pushed to extremes. Inflation = currency debasement = cost to hold/carry those notes. You might lend you dollars/pounds/whatever to the state/others and receive some interest, that's taxed (so a decrease in the actual amount of interest paid), broadly after inflation, interest taxation, costs your loan to others is inclined to yield nothing, may even cost you. When gold (and silver) were used as currency, the state had to pay a real rate of return in order to entice you to lend to it, since the Fed (1913) there's been a progressive transition to where the state no longer needs to borrow.

You're in the US and the US strives to dissuade you from holding gold, taxes it quite heavily compared to for instance the UK. Costs and taxes should be a consideration when looking at asset allocation choices.

How can you be in the USA and think that physical Gold not a worthwhile investment. Like you mention it is not an investment it is an insurance policy and it is not a volatile investment (lear capital reviews). It is in the American constitution that payment can only be made in Gold/Silver not fiat currency. You should always trust what has been written by the founding fathers than the current crop of politicians / financial advisors.

thank you so much for your suggestion

[MonkeysUncle]

Everything is volatile. Stocks don't need any explanation, ditto bonds.

Property... yeah, I call it volatile. Usually nowhere near as volatile as stocks or bonds but it does go down as well as up. And if you need the money for something then you're shafted if you can't sell it for what you want when you want.

Cash is volatile. Dumb ass Western Governments printing it more quickly than leaflets promoting your local pizza joint. 

Gold... yeah, it's volatile. But in my mind probably the least volatile of asset classes if you don't include fine art. And by fine art I'm thinking the stuff that even Elon Musk and Jeff Bezos would likely think before buying. 

So buy some gold baby, and put it somewhere safe. But don't just have gold. Have cash, have a house, have some bonds and stocks. Balance, find a balance. If everything's in one pot you may hit the moon. But you may more likely end up with a butt that feels like it's been rogered royally!

[Bratnia]

20 hours ago, MonkeysUncle said:

Everything is volatile. Stocks don't need any explanation, ditto bonds.

Property... yeah, I call it volatile. Usually nowhere near as volatile as stocks or bonds but it does go down as well as up. And if you need the money for something then you're shafted if you can't sell it for what you want when you want.

Cash is volatile. Dumb ass Western Governments printing it more quickly than leaflets promoting your local pizza joint. 

Gold... yeah, it's volatile. But in my mind probably the least volatile of asset classes if you don't include fine art. And by fine art I'm thinking the stuff that even Elon Musk and Jeff Bezos would likely think before buying. 

So buy some gold baby, and put it somewhere safe. But don't just have gold. Have cash, have a house, have some bonds and stocks. Balance, find a balance. If everything's in one pot you may hit the moon. But you may more likely end up with a butt that feels like it's been rogered royally!

I like to think of a ewallet (brokerage account), containing stock and gold 'notes', that are typically larger value notes and that tend to see the combined purchase power of those notes increase over time. Pounds (Dollars) are more inclined to devalue over time, buy less (prices of things cost more). So only convert larger (stock and/or gold) notes into Pounds (Dollars) at/near times when you're going to actually make transaction(s). Spend using your credit card, near the end of the month (when the bill is due) convert some of either stock or gold 'notes' into Pounds (Dollars) ... enough to cover paying off that bill. Spend down the 'note' that is the higher value at the time, or most up relative to whatever target weightings/proportions you prefer.

Using US data from portfoliovisualizer.com https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=5pTUX3fUr9eaG9ZtvTfFOy for 50/50 yearly rebalanced stock/gold (stock dividend reinvested)

indicates how over time stock/gold 'notes' bought more (prices became relatively cheaper in terms of stock/gold 'notes'). Prices deflated rather than inflated as they tend to do in terms of Pounds (Dollars).

Quote

So buy some gold

In that context you're not 'buying' gold (or stocks), you're depositing surplus at the time otherwise losing currency (Pounds/Dollars) into a ewallet/currency that is more inclined to maintain/increase its purchase power.

The combination of fiat US dollars currency, and non-fiat commodity currency (gold) is a nice counter-balance, especially if those Dollars are invested into stocks.

The Fed would have you believe that deflation, prices becoming cheaper, is a bad thing, that they'll do anything to avoid. Me, I'm happy to see the price of things become cheaper over time.

[Esjayc]

For me, the only 'volatility' in gold is if you try to buy and sell it short term, watching the peaks and troughs in the price. That's why I don't look at the price as such. I buy a bit here and there when I can afford it, and the overall price is 'spread' average that way. 

Yes, there have been times in the past where gold has gone down. Sometimes significantly. But for long term investment, the trend is over all actually always up.

If you are not buying for long term, such as a long term investment goal, a long term store of wealth for retirement, 'additional pension', additional property purchase etc, then I would say gold is 'not for you'.

[HerefordBullyun]

Gold has an average 9% yield go figure!