I have no idea what the future price changes of silver may be. I do not believe that anyone esle knows either.
I have never bought gold and I find it difficult to take it seriously as an investment. However, I have heard two arguments that do not depend on some mystical ability to predict prices.
1, at least for gold, there is apparently a high beta with inflation. Thus, long term on average, holding gold can help ameliorate portfolio losses at times of high inflation. However a TIPS ladder in a tax favored account seems far more reliable for combating inflation.
2, societal collapse. Under these circumstances, preppers say that gold will still have value. I have no idea whether this is true and neither do they. I would think that food, ammunition, water, gasoline, etc would be far more desirable, particularly since it would be up to each person to determine whether that shiny metal they were offered contained any gold at all, let alone at the purity claimed.
Absent those two uses, for those who do not use them to manufacture objects we sell, precious metals are speculative "investments". At least the OP is using them in the appropriate way for a speculation- make a guess as to future value, based on tea leaves, flights of birds, whatever. Then buy or sell to capture the imagined reward to guessing right.
I would rather buy more VTI and TIPS.
I have never bought gold and I find it difficult to take it seriously as an investment. However, I have heard two arguments that do not depend on some mystical ability to predict prices.
1, at least for gold, there is apparently a high beta with inflation. Thus, long term on average, holding gold can help ameliorate portfolio losses at times of high inflation. However a TIPS ladder in a tax favored account seems far more reliable for combating inflation.
2, societal collapse. Under these circumstances, preppers say that gold will still have value. I have no idea whether this is true and neither do they. I would think that food, ammunition, water, gasoline, etc would be far more desirable, particularly since it would be up to each person to determine whether that shiny metal they were offered contained any gold at all, let alone at the purity claimed.
Absent those two uses, for those who do not use them to manufacture objects we sell, precious metals are speculative "investments". At least the OP is using them in the appropriate way for a speculation- make a guess as to future value, based on tea leaves, flights of birds, whatever. Then buy or sell to capture the imagined reward to guessing right.
I would rather buy more VTI and TIPS.
Statistics: Posted by afan — Sun Jul 28, 2024 3:27 pm — Replies 20 — Views 3048