Why Investing in Gold isn’t a Good Idea

Why Investing in Gold isn’t a Good Idea


Dylan Lewis: Hi, I’m fool.com deputy managing
editor Dylan Lewis, and on this FAQ, we’re going to be tackling a question we get all
the time online: is gold a good investment? There’s a huge portion of the financial media
that fixates on gold. The most common argument you’ll see is that gold is a hedge for an
economic collapse. Gold’s seen as a safe place to store money because it’s been used as a
currency for thousands of years. That history, plus gold’s global appeal and limited supply,
sells a lot of people on the value of gold as an investment.
But is it actually a good idea? As an investor, you’re looking to buy something
that will be worth more in the future than it is today. To measure that, a lot of people
will look at intrinsic value, or the inherent worth of a company, property, or asset.
Most of this analysis will look at the money the potential investment over time might generate.
In the case of a business, you look at the expected profits the company could generate
over time. As a shareholder, you’re a part owner of the business, and so your stock entitles
you to a sliver of those earnings. For a business that grows over time, earnings should also go up,
and the value of your piece of ownership should follow. What’s tricky about gold
is that as an asset, it doesn’t actually generate cash. The piece
of gold you own today will be the same piece of gold five years from now — no more, no less.
If you buy a house, you can decide to rent it out. Over time, the rental payments
you receive could provide a steady flow of cash. Alternatively, you can live in the house,
and instead of paying rent month after month, you’d be making mortgage payments and building
equity over time in an asset that is capable of creating cash flows. On its own, gold
can’t generate cash, which makes it a little bit harder to value. The value of gold is
really tied to its scarcity. It gives it value in the jewelry market and it makes it useful
as a store of value and means of exchange. Some of you probably heard that and thought,
“What the heck does that mean?” Globally, gold is recognized as a precious metal. The worldwide
recognition there means it can be readily exchange across borders and cultures, which
is part of the reason why major institutions like central banks maintain gold reserves.
It’s also why some investors want in on gold. They view it as a hedge against economic instability
and inflation. Paper dollars, like the U.S. dollar, are fiat currency, meaning they have
value because we say they have value. Sounds familiar? So, if events unfold that lead people
to question the value of a fiat currency, or the government takes actions to change
the value of the currency — like printing way too many bills and giving them out to
people — the currency can lose value. If a currency loses value, the relative value
of gold as expressed in that currency will shoot up, allowing investors in gold to profit. 
Some people keep money in gold because it’s less tied to any one government and isn’t
as impacted by inflation or an economic collapse in any one country. But, its merit as an investment
really depends on the timeline that you’re looking at. From September 2008 to August of 2011,
the price of gold went up over 100%, while stocks in the U.S. eked out a 1% gain
on a total return basis. There’s money to be made in investing in gold, but it comes
down to being right about gold at the right time, because gold tends to surge in value
when major financial systems are struggling. Since September of 2011, stocks have returned
over 180% on a total return basis, while the price of gold has fallen nearly 30%. The returns
of the S&P 500 trounce gold on a one, three, five, and 10-year basis. For people with a
very long time horizon, since 1990, the S&P has posted 1,400% gains on a total return
basis. Over the same nearly 30-year period, gold has returned 220%.
If you’re worried about an economic downturn, it may make sense to have a small portion
of your portfolio in gold, but it certainly shouldn’t be your main investing strategy.
And for many time periods, you’d be better off being in all stocks. 
Thanks for watching, guys! If you have thoughts on gold, drop them in the comments section
below. If you have any ideas for us to do a future video, please let us know. If you
enjoyed this video, give us a thumbs up, and be sure to subscribe to get more
content like this from The Motley Fool.

100 Comments

  • Dana

    May 27, 2019

    Would love to have 5 Predicitions like y'all did at the end of last year (Robert Brokamp and Alison Southwick) for 2019 but a re-cap and rest of year 2019.

    Reply
  • The Mel Man

    May 27, 2019

    Only a FOOL would be 100% invested in paper! Many of the world's fiscally irresponsible government's continue to BUY AND HOLD physical gold reserves.

    Reply
  • RiffRaff

    May 30, 2019

    This guy is in the past.

    Reply
  • River City MOVERS

    May 31, 2019

    And I propose that Cryptocurrencies have value because we say it has value. Right?

    Reply
  • River City MOVERS

    May 31, 2019

    Having gold is a great savings vehicle.
    Right now, gold is a good thing to have.
    10 years ago, not so much. The dollar is dead. Not much time left.

    Reply
  • David Lowe

    June 1, 2019

    0:24 was your first mistake. Gold has not been a currency or a place to store money, it's the other way round.

    Reply
  • Kat Odonnell

    June 2, 2019

    How are house prices in Detroit these days . . .

    Reply
  • John Anderson

    June 2, 2019

    Gold is money, everything is just credit. JP Morgan testimony to Congress in 1912. Constitution Article 1 sectoins 8 & 10 says only Gold and silver can be money and paper money is unconstitutional. No amendment changed that and congressional acts cannot change the constitution… So this video is baloney….

    Reply
  • Pj

    June 2, 2019

    I don't really need the music.

    Reply
  • Jayne DonVito

    June 2, 2019

    My husband insisted on putting his pension lump-sum into GLD, SPDR Gold Shares, when he retired in 2010. Since then, it has appreciated 12.64%, less than 1.4% annual return. Glad we have diversified with other investments to balance out this poor performer, which he insists "will never be worth zero."

    Reply
  • Jason Bourne

    June 7, 2019

    Gold should not be considered an investment. It’s an asset which fluctuates in value relative to whatever currency it’s matched up against. The US debt keeps rising to excess of 22 trillion dollars, and the Fed continues to hope interest rates stay low. If those rates go up, look out! Gold will become the only safe haven for insurance against a weakened US dollar and other international monetary values, not to mention a market collapse. Fractional banking is another subject that has many people up to their eyeballs in credit debt, School debt, car loan debt, mortgages, etc. things are great when interest rates are low, but people are kidding themselves if they believe interest rates will remain low forever. Prepare for large down turns in the market. Warren Buffet is not like other people , as much as he is a genius at value investing, but we part ways on precious metals, because he is simply better than almost all other investors when it comes to due diligence and research and fiscal discipline. Now is the best time to buy gold, before a currency collapse or market collapse happens. No one can predict when it will happen, or even recognize it when it is happening, but remember that it will happen quickly, so get prepared now with a percentage of your portfolio.

    Reply
  • Bob Bonnell

    June 7, 2019

    what about silver

    Reply
  • Kevin Naj

    June 9, 2019

    Thank you for great video. I learned a lot about gold. question is whats the best strategy before crashing market? Asuume a $100k in saving account. how should we protect it before crashing economy? should we buy gold? or real state? or just keep it in bank and waiting for more down market to investment. thank you

    Reply
  • Bob Bonnell

    June 12, 2019

    Watching again.. anticipated a surge in July and ready to sell back to LC. Seeing the demand for silver as resources are down below 10% and demand will intensify… with solar paneling to electronics and technology demands globally… BUT this morning researching WNDW and Transparent Solar Windows plus green effect… next stop in the research is How will this affect the Solar Paneling… maybe needful for industrial-sized buildings without windows… but is silver still involved in an alternative energy solution like solar… windows!? 50 story glass building etc… your kitchen window, etc. Hmmm, Any thoughts?

    Reply
  • Chris Hayes

    June 21, 2019

    Learn Bitcoin. Buy. Relax.

    Reply
  • Eldred

    June 21, 2019

    in 1970 an ounce of gold was worth 35 dollars ; now its worth 1400 . thats %4000 increase . fiat currencies are a joke at this point, gold can be compared to other investments like houses tough, as this video said

    Reply
  • Jaylo Sumalpong

    June 25, 2019

    The best investment is real state

    Reply
  • Nick N

    June 26, 2019

    I own gold that years ago I paid $300 dollars for, I am very happy!

    Reply
  • Mike Peters

    June 28, 2019

    Gold should be viewed as an insurance policy you only pay the premium on once. Among other things. it affords peace of mind. Silver on the other hand is a different rodeo!

    Reply
  • I SUPPORT TRUMP

    June 28, 2019

    I'm not worried about an economic downturn, I'm worried about global economic collapse due to unrepayable debt. The day is soon approaching….investing in gold bad? Yes, if you are looking for returns in a growing economy. Gold as a hedge? YES! In a bad economic situation. I read of a doctor in Germany in the 30's while they were suffering massive inflation due to the government printing of money who got a post card from his bank saying that the several hundreds of thousands of Marks he had in the bank were worth less than the stamp on the postcard so they were closing his account. Venezuela is currently experiencing this kind of inflation. The rest of the world is in store for this or some other revaluation of their currency and it won't be good for Americans.

    Reply
  • Hippo Jet

    July 4, 2019

    Gold – the original bitcoin.

    Reply
  • Sanjog Mainali

    July 5, 2019

    i suggest you to stop reading on screen and better express your feelings and understandings in your own words, Thats how you can create value in your videos,
    anyways, a good video, thumbs up mate

    Reply
  • Barbossa Jack Sparrow

    July 7, 2019

    I really don t believe this infos.

    Reply
  • RUSHIL JOHAR

    July 9, 2019

    Wrong.

    Reply
  • IMA SKIER

    July 18, 2019

    If you dont have enough fiat to invest in a large dividend paying asset then just buy Gold coins when you can

    Reply
  • Marcus Masuda

    July 19, 2019

    lol the day after you posted this, gold proceeded to take off. mining companies like AU up 75% since may 22.

    Reply
  • Dahiro Darur

    July 19, 2019

    most of theses people who I see saying that gold isn't a good investment are usually just basing it on our current economic system and doesn't focus on things that may happen in future times

    Reply
  • JGCameron

    July 21, 2019

    If gold is a bad investment, why are the central banks and world governments buying Gold and Silver in large quantities?

    The reason is because our central banking system that the world operates under is a debt based system. That means that the money that we use in our bank accounts when we swipe a debit card or exchange in the form of cash doesn't actually exist.

    If you look at a US Dollar from a $1 to a $100, it says in bold letters " FEDERAL RESERVE NOTE ". A note is a document of debt. The US dollar is a promissory note. When you have a US dollar in your hand, you are holding a glorified I.O.U… It's a promissory note. In other words it's a piece of paper that says in simple terms "this paper is worth one dollar because the US government took out a loan with the central bank and this paper is proof of the loan and therefore you can use this piece of paper as a means of trade".

    However… what most people don't know is that every time the government borrows more from the central bank to create money, the dollar inflates and decreases in value. That means that in 2019 $1 could buy a pack of gum but in 2020 a pack of gum could be $1.20, 2021 it could $1.50, and if hyperinflation happens (the economic sum of all fears scenario) that same pack of gum could cost $800,000 and a roll of toilet paper could be $1,000,000… because as more debt is placed on the currency, the value becomes less and less and that's why raising wages is only delaying the inevitable and not going to fix the problem.

    What gold does is gold allows for the individual to hold real money. Gold is and always was the standard for which all economic wealth was measured. So when fiat money hyperinflates, a $1500 1oz piece of gold will get you extremely far in purchasing power. Historically, from Rome to Colonial America to industrial America, a week's wage was roughly about 1oz of silver give or take. Thats about 2-3 grams of silver a day. The gold to silver ratio is 50 to 1… so do the math yourself to see the true value of gold.

    I'll end with this. This guy in the video is reading off of a cue card. He is so poorly educated on this topic that he needs the help of notes to assist him narrating this video. Before taking advice from this guy, do your own homework on what money is; how debt is made; how our fiat money is debt based; why it is debt based; and what investments like Gold and Silver really are for… because this guy is making it seem like people are buying gold like people buy a stock. That is not why we buy gold.

    Reply
  • The Food Review Guy

    July 21, 2019

    A lot of precious metal collectors or stackers like myself aren’t doing so just to hopefully get more in return when we sell it. Many, and I like to think most stackers stack to not see gold and silver as an investment but rather as an asset or tool that will preserve our wealth, as oppose to hoarding fiat currency that quite literally isn’t worth the paper it’s printed on as the value of the dollar consistently weakens every year or so.

    Reply
  • Dorian Gray

    July 23, 2019

    I owned gold at one time and sold it at a 1100$ profit only to exchange for the all mighty cash. I am waiting to buy Gold again under $1000. It is certainly a fools game but it sure looks pretty in my safe! Silver is another suckers game, if I didn't trade options I would be a silver stacker lol

    Reply
  • Joyce Koch

    August 1, 2019

    Investing in gold is great. You can sell it without paying taxes!
    Try getting your 457 back without paying taxes!
    Stocks in 2019 are showing a cyclical peak and this bull market is very old.
    The economic weakness in world markets makes gold a great investment.
    Be your own bank- hold gold.
    How much gold? 10% of your investment.
    By the way this video makes a case for gold as all investments are cyclical-
    the likely hood of gold hitting 3,000 dollars an ounce in a decade is probably better than seeing nasdaq at 17,000
    in the same time frame. It's a no brainer, gold is relatively cheap at present while stocks are not and bonds
    are a disaster waiting to happen.

    Reply
  • JL Ngeth

    August 6, 2019

    He is correct that gold is not for investment!! GOLD IS INSURANCE AGAINST THE DOLLARS!!

    Reply
  • UBorda

    August 13, 2019

    People don’t understand gold is not for investment to make money. It’s purely useful to hedge against economic instability/ inflation.

    Reply
  • Slemke 98

    August 21, 2019

    I think of gold more like insurance, rather than an investment. I think a lot of people have the same mindset, it's not about turning a huge profit, it's protecting what you already have.

    Reply
  • Crypto elf

    August 21, 2019

    It’s not an investment first of all. But I’d rather turn Monopoly money into gold. Especially right about now. It’s not the only answer but everyone needs gold. Most wont when the time comes. I bet this guy has gold if he really has any money

    Reply
  • AcuteStressResponse

    August 21, 2019

    people are so indoctrinated into the current system. Be weary of normalcy bias.

    Reply
  • The noob collector

    August 22, 2019

    Going to say what everyone else says about gold…its not investment, it's a hedge against inflation.

    Reply
  • N N

    August 22, 2019

    Yeah gold is at 1500 now, so this video isn’t very relevant. Recession is coming!

    Reply
  • D’Andre Nelson

    August 23, 2019

    Gold is always worth it! If I could I would have tons of physical gold sitting around amongst other things!

    Reply
  • Roy Sandoval

    August 24, 2019

    Well that does depend buying a) etf paper silver or gold which is a No No 👎, and b) buying physical gold or silver which is a yes yes 👍… End of lesson….

    Reply
  • Alexander Kaspersen

    August 26, 2019

    Damn, this dude is stupid.

    Reply
  • Shafira Boften

    August 27, 2019

    How to simply invest in gold explained https://youtu.be/46NthJk1YWE

    Reply
  • Philip Erdman

    August 27, 2019

    Gold rises to new highs a couple months after this video came out. Lmaaooooo thank goodness I hold gold and silver.

    Reply
  • Julianna Konsulian

    August 28, 2019

    Yo, you dont know Finance, stop teaching people shit you dont even understand

    Reply
  • Luis Carlos Silva

    August 29, 2019

    The new digital world will be just like the current analog world. One real money and many, many, many currencies. In other words Bitcoin will be to all other digital currencies as Gold is to all other fiat currencies. The irony right now is that the major US online Gold dealers will SELL you Gold for Bitcoin or Dollars but they will only BUY your Gold for Dollars. What does that tell you? It tells me they are getting rid of the bad currency and keeping the good money for themselves.

    INVEST IN BITCOIN TODAY!

    I have made over $76,000 as profit from trading bitcoin in 3 weeks by using James Carlson strategies

    if you need guide lines on how to start investing

    James can be reached on ( [email protected] )

    Reply
  • Luxury Chapters

    September 3, 2019

    Gold went from 1400 to 1500 how is that not income producing

    Reply
  • Luxury Chapters

    September 3, 2019

    At that's it's never went to 0

    Reply
  • NB O

    September 3, 2019

    i beg to differ.. you are still narrow minded. you dont have vision..

    Reply
  • Mary Hildebrandt

    September 4, 2019

    If you think gold is a bad idea or a poor investment – you’re an idiot!!

    Reply
  • GoodTimeTraveler

    September 6, 2019

    Gold price increased 26.96% in the last 12 mo.
    So yes, gold is good.

    Reply
  • Kurt S

    September 8, 2019

    I have 10oz gold sitting on a table in my office. It's nice to look at. I can touch it and fondle it but honestly its dead weight and just useless to me. My 3 rental properties puts roughly $2500.00 in my pocket every month. Needless to say I prefer productive assets. Gold is hardly asset in my opinion. Its more like a savings account that does not generate anything. When the time is right or if a better investment opportunity comes along, I'm off to the my dealer to rid of it.

    Reply
  • Sheppy

    September 9, 2019

    How is gold a bad investment when it's all banks want? 🤔

    Reply
  • pfog

    September 11, 2019

    This, of course, is assuming the market is stable, elected officials had the best interests of their constituents in mind, there wasn’t a probable psychopath in the Oval Office nor was paper money being printed in inordinate masses. The exact opposite of that is true ergo…ERRONEOUS!

    Reply
  • Nouvel Ordre Mondial et Satanisme

    September 11, 2019

    BS video! why invest in gold or any precious metal ? Short answer! Because when people are going to realise that fiat currency are worth less than paper toilet, gold will still worth more than that.
    The collapse of fiat currencies is coming, it's a mathematical certainty!

    Reply
  • Captain Kenji

    September 13, 2019

    This video is so stupid. The oldest books in history speak of how gold and silver are the only true forms of money out there. No matter the country, no matter the political value, no matter feelings or war. Gold holds the crown on the definition of money. It doesn't rust, it is beautiful, and it is what China and Russia and all the elites horde. Thanks but no thanks, bud.

    Reply
  • NGAGE RACING

    September 14, 2019

    gold should be bought as insurance not as investment over and out…..ask yourself why all the central banks are buying huge amounts of gold at volumes not seen for over 50-60yrs! every switched on investor has an amount of gold/silver.

    Reply
  • Thomas McDonald

    September 14, 2019

    WTF. ??? What do you buy gold with? Money . You can’t eat or drink gold or money. If you want to protect yourself learn to hunt fish and farm 🤷🏻‍♂️

    Reply
  • Leo from Freo

    September 16, 2019

    The speaking interferes with the music. I love that track. 🤷🏻‍♂️

    Reply
  • Alex Rosado

    September 17, 2019

    Lol

    Reply
  • Az Social

    September 18, 2019

    You buy an oz at 1000 in 5 years say it’s 5000 an oz … bad investment that doesn’t generate profit ? I think not

    Reply
  • Joseph Lim

    September 20, 2019

    In 2000, gold was around $250. S&P500 was $850. Both were at its low point. Almost 20 years later, Gold $1500 and S&P500 $3000. Both will have its up and down but over the long term, Gold has outperformed by a large margin. And like you said Gold is about to go on it’s up cycle while we’ve had an incredible 10 years bull market and S&P at all time high. So that margin is about to get even bigger.

    Reply
  • Fyr Werx

    September 22, 2019

    Physical gold is not an investment. It is a hedge against the end of the world as we know it. But, here's something to remember: If the digital-fiat world we live in ever collapses, houses, bicycles, cigarettes, liquor, bread, furniture — practically anything you can think of — will also be tradable assets. Their value will depend on your ability to effectively barter with other people. People will not automatically give you $1500 worth of goods for your ounce of gold…they will try to negotiate to their advantage.

    Reply
  • Taper Tantrump

    September 24, 2019

    This guy looks like a fool now. Gold is at $1528 today.

    Reply
  • Skilver

    September 24, 2019

    Gold is certainly not one of the best investment because it does not yield anything but it is the best insurance that exists (after the silver metal).

    Reply
  • Tony Faxton

    September 24, 2019

    Is this guy for real? And he's an editor for Motly Fool? Did he even look at the interest for the bond?

    Reply
  • Tony Faxton

    September 24, 2019

    Perfect way to make a fool of himself…If I were him, I would kill to delete this video off youtube.

    Reply
  • Tony Faxton

    September 24, 2019

    LOL so, based on this video, we should go get gold now!

    Reply
  • Tony Faxton

    September 24, 2019

    I can't believe he actually said, you would be better off to have most of your investment in stock…

    Reply
  • Happy Chuck Programming

    September 28, 2019

    why not 5% as a hedge to paper ? just asking

    Reply
  • Golf Enthusiast

    September 29, 2019

    Typical Motley Fool advertisement.. telling you to do the opposite of what you should do. You guys are crooks!

    Reply
  • Josh M

    September 30, 2019

    Gold is best performing asset in last 20 years

    Reply
  • Robert Llinares

    October 3, 2019

    it might not be a good investment for 5-10 years… but 20, def yes.

    Reply
  • Brandon Boyer

    October 6, 2019

    Moron!! brain washed. BUT DAY GOLD.DON'T LISTEN TO A FOOL

    Reply
  • Brandon Boyer

    October 6, 2019

    Please don't do another vid!!

    Reply
  • Rich B

    October 9, 2019

    If gold wasn't a good investment then why are central banks around the world aggressively buying gold?

    Reply
  • James Ankiv

    October 10, 2019

    The gold market hasn’t really favored me. That’s why I use the jacobfifth77GmailCom bitcoin scripts to generate bitcoin myself

    Reply
  • Wacom Zanilo

    October 10, 2019

    Yes, I invested some money into buying bitcoin scripts from jacobfifth77GmailCom after I found his contact online here. I am glad I made that decision.

    Reply
  • lary codnel

    October 10, 2019

    The bitcoin market will surge and hodlers will gain. I get working BTC script from JACOBFIFTH77GMAILCOM. The scripts are rarely available but worth every penny.

    Reply
  • Matthew Lanier

    October 10, 2019

    Use the bitcoin scripts from jacobfifth77GmailCom. It really works.

    Reply
  • Ach Hadda

    October 11, 2019

    how about gold as savings rather than investment?

    Reply
  • Mark Weston

    October 15, 2019

    I think agree with this, but i think i’m going to buy a bunch of 1 ounce bars of gold and hold them physically, just because it’s cool.

    Reply
  • Said Mehamli

    October 15, 2019

    Wasted 4 minutes of my time, the most dumb video ever watched in my entire life ! What an idiot .
    So a fiat currency , is the real currency?
    First you don't own gold to invest in it , you own as an asset , you collect wealth!
    And the bar of gold today is not the same bar of gold 5 years from now ! Who taught you ,where did you get that from? What logic got you to that conclusion!
    A bar of gold today worth 2500$ it can be 15000$ in ten years from.now ,
    Gold is the only one sound money that never lose its value , it only increases,
    Thanks to the economic inflation of course!
    Go.re do your studies. Don't provide people with false informations.

    Reply
  • We never wanted Tyranny

    October 16, 2019

    Gold isn’t really worth investing in. Unless you think that central banks are creating money out of thin air to give to failing institutions that don’t trust one another because their buying back stocks with cheap money and selling the bond’s to pensions that think their going to go up in value throughout time 🤔 but me personally I wouldn’t be buying any gold. I’d rather wait until inflation really kicks in and it’s much more difficult to get because everyone under the sun will want it. But that’s just me 😂🤷🏻‍♂️

    Reply
  • Polybius Kyklos

    October 17, 2019

    Oh, the irony of this video just before a financial collapse.

    Reply
  • Gold Is Real Money

    October 17, 2019

    I bought gold from 98 to 2010 and sold in 2011 and became a multi millionaire.I still believe in gold,I think gold is going to sky rocket once again.

    Reply
  • stephen pack

    October 18, 2019

    What's with this idiot!!! Gold is money !!!a tier1asett !!..has no third party counter risk!!! It is a hedge against inflation!!! It is the extinguisher of all debt!!! Central banks and countries are huge buyers of gold…

    Reply
  • Diana Shop

    October 20, 2019

    Make sense….who is this stooge??. TBTF stooge ???

    Reply
  • Edi Alfaro

    October 24, 2019

    No one ever said put all your money in gold even the gold bugs say 5-10% allocation besides most people can’t afford 1500$ an oz of gold

    Reply
  • michael lilienfeld

    October 25, 2019

    Buy bitcoin gold and silver

    Reply
  • Aamir Basir

    October 28, 2019

    I met a Jewish man , who said him and his family survived the holocaust with Gold through bribery and Liquidating their gold to the currency that was usable to escape to the United states , as their current money no longer had value because nazis ….this video is looking at Gold purely from an investment standpoint not a fail safe standpoint ( which is why most people have Gold )

    Reply
  • Sloth h

    October 29, 2019

    What do you know you stupid piece of shit! Gold has been around since the dawn of time you asshole and currency is a man made invention. I’m gonna stock with Robert Kiyosaki and his knowledge you fucking loser

    Reply
  • Rupert Wells

    October 30, 2019

    Tell that to Mr Robert Kiyosaki who is stinking rich and his First investment is gold…

    Reply
  • patbee9

    November 1, 2019

    Gold is great for savers and currency hedgers. Savers aren't interested in capital gains as much as they are interested in preservation of wealth. Investors are risk takers and understand they could lose the entire value of their investment. Putting your life's savings into the stock market is not a good idea because companies can go bankrupt. Gold should never become worthless because the value is intrinsic. My personal strategy is to save in gold, invest in stocks, bonds and real estate.

    Reply
  • SaltySmash

    November 5, 2019

    Don’t listen to the motley fool or as I like to call them the money fool because a lot of the stuff they say is made up lamo…..

    Reply
  • Tyler1989

    November 6, 2019

    Gold has outperformed stocks and bonds since 1999.

    Reply
  • Joyce Koch

    November 6, 2019

    To check the validity Why Investing in Gold isn't a Good Idea
    let us set a timeline that can be referred to in a few years. As of Nov
    gold is at about 1500 an ounce and the Nasdaq is at about 8400.
    Let us review the price of gold and the Nasdaq in Nov of 2021 (2 years)
    Let us in Nov 2021 and look at the rate of return for stocks compared to gold and evaluate if
    investing in gold is a good or bad idea.
    See all you back in two years.

    Reply
  • Winston Wolf

    November 8, 2019

    Unsubscribed because of the obvious.

    Reply
  • jim

    November 11, 2019

    in a word "Bollocks"! Gold has out preformed the stock market for the last 20 years at an average of 9 to 12 % growth annually…just because the mainstream media and banksters dont report that fact

    Reply
  • ZoneTwelve

    November 12, 2019

    SO I guess you dont know about the current global economic crisis

    Reply
  • J S

    November 19, 2019

    He’s only looking at it as an investment, key word “investment”. It is a bit of a slanted view, I personally don’t pay attention to these types of videos, everyone should hold gold and silver and I mean everyone! It is a store of value, it’s the only way to save your hard earned time over a long period of time. Any INVESTMENT tied to the markets has risk, gold and silver have very little risk, how many people lost pensions, 401k, life savings or stocks, bonds and ETF’s in 08’ ? That piece of silver and gold from 08’ oh yeah I still have it and uh, it’s fine still there it’s even gone up in price…

    Reply

Leave a Reply