Does Gold Make Sense as an Investment?

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Does gold make sense as an investment? According to J.P. Morgan, “Gold and silver is money, everything else is credit.” According to Dave Ramsey, gold is a terrible long-term investment.

So what are the reasons to consider gold as an investment?

In this video, you’ll discover:

The top 2 reasons to invest in gold, so you can decide if it makes sense for you…

How gold can safeguard your portfolio in times of economic uncertainty…

Which investment strategies work well with gold, and which are terrible.

And the pros and cons of some different ways to buy, sell, and store gold, including when is the best time to buy in gold.

There are two main reasons to consider gold as an investment:

The first is that gold can protect your money and safeguard your portfolio in times of economic instability because it’ll hold its value in the face of inflation, hyperinflation and crazy government spending.

But does gold make sense as an investment?

Let’s look at how gold works as a hedge against inflation and government manipulations…

A kilo of gold in 1945 could buy a car and a kilo of gold now… can still buy a car.

So that’s how gold can safeguard your portfolio in times of economic instability.

The second reason to consider gold as an investment is to GROW your money.

During some periods, the price of gold has gone up faster than the stock market. So you always need to consider when is the best time to buy in gold.

If you’re curious about investing in gold to grow your wealth, the #1 secret to investing in gold successfully…

Is having the right investment strategy!

That’s why some financial experts like Dave Ramsey strongly recommend AGAINST investing in gold… because Dave Ramsey’s strategy is to Buy & Hold and that’s a terrible strategy for gold.

Statistically, just buying and holding gold consistently long term will underperform the stock market. So of course, he doesn't recommend it!

So if you’re following a Buy & Hold investment strategy, then you would only buy gold as a hedge against inflation, not for growth.

Buying gold is different than buying stock in a company because gold doesn’t generate an income like Amazon or Disney or Coca Cola… what drives the price of gold is supply and demand, and the demand grows when investors are feeling uncertain.

So if you want to invest in gold to grow your wealth, you need a solid plan to only invest in gold when it makes sense.

You’ll want to learn how to read price charts and study the price of gold as well as how it’s performing relative to the overall market and other investments you might consider. So how do you invest in gold for beginners? Since you need to have a good strategy for investing with gold to grow your wealth, it’s not perfect for beginners.

If you decide that you DO want to invest in gold, then there are a bunch of different ways to buy, sell, and store it.

If you like the idea of owning physical gold in your possession, the downside is that you need to have a safe place to store it.

Most people own gold in the form of gold coins or gold bars, with the bars typically being 1 oz, 10 ounces or 1 kilo in size.

An allocated account means they keep track of what specific gold is yours. And an unallocated account means that it’s mixed up with everyone else’s.

On the topic of gold stocks vs. physical gold, if you don’t want to deal with the hassle of storing physical gold, you can invest in gold-related exchange-traded-funds like GLD stock or even a fund that invests in gold-mining companies, like GDX stock.

The downside to investing in funds like this is that you don’t have actual gold, but the upside is that you don’t have to worry about storing it or having it stolen and it’s super easy to invest in a fund like this right in your brokerage account, and even a lot of retirement accounts like IRAs allow you to do this. I’ve been able to invest in gold ETFs and gold mining ETFs right inside my Roth IRA.

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NOTE: This is an MLM, and you’ll pay a premium over the average spot price of gold for the convenience of having it in transaction-friendly amounts.

NOTE: Penelope Jane Smith will receive an affiliate commission or referral bonus from some of the links and other products that appear in this video. Penelope Jane Smith is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.