Gold, the undisputed "safe harbor". Or is it?

[Yellowtail]

3 minutes ago, hotsun said:

I dont understand golds value as a hedge against the dollar because bitcoin does it better. I wouldnt expect anyone here to understand

Yeah, it was silly of me to think I might. 

[hotsun]

2 minutes ago, Yellowtail said:

Yeah, it was silly of me to think I might. 

Its not you personally, i think old folk without kids have no reason to research it

[ExpatOilWorker]

1 hour ago, Yellowtail said:

While I do not disagree, that chart is a bit suspect. In 1920, gold was about $20 an ounce. A $20 gold piece was 90% gold and weighed just over a Troy ounce. The last year they were minted was 1933. 

Inflation adjusted price.

 

[ericbj]

On 5/22/2025 at 8:43 PM, swissie said:

I am starting to feel a bit uneasy. More and more "financial advisors" pushing Gold as a uncontested "store of value", a "safe harbor". The "can't lose" syndrome making the rounds.

 

Those financial advisors forgetting to mention, that Gold has gone thru "bear markets". The last one lasting from July 2011 to December 2015. From $ 1830 down to $ 1060. Not sure if Gold holders considered Gold as a store of value during this time.

 

Let's face it, Gold is a metal (a commodity if you will) it's value measured in US$ daily. Supply and demand, just like in any other commodity.

 

I find it disturbing that increasingly financial advisors are recommending Gold to small investors as a "can't lose" investment.

Never put all your eggs in one basket.  In "normal times" the recommendation was usually about 5% of asset value in gold.  Many in current abnormal times say 30 to 40%.  Gold is not just another commodity.  It is money.  It is one of only two tier-one assets, the other being the US dollar, which is not money, it is a fiat currency.  The dollar is falling in value, which explains some part of the rise of the dollar price of gold.  The other being gold demand, so far mostly from central banks and financial institutions.  Gold will slip back a bit from time to time but is on an upward trend.  Do not buy 'paper-gold', do not invest in gold ETFs, do not invest in gold exploration companies, buy gold mining shares or royalty or streaming shares for leverage in a gold bull market (works the other way when the gold price falls).  Store your bullion, allocated and ideally segregated with a vaulting company in a trusted jurisdiction other than your country of origin or of domicile.  All markets are cyclic.  So look at the cycles.  In theory we should be in a commodities bull market, but it is being hit by economic turmoil.  Gold can survive a recession, where most commodities will fail.  Remember gold bullion pays no dividends; it costs to store and insure it.  Look upon it as a form of insurance, rather than profits (although the current circumstances are exceptional).

[FlorC]

3 hours ago, hotsun said:

Its not you personally, i think old folk without kids have no reason to research it

Both gold and bitcoin are good to circumvent inheritance tax.

 

Bitcoin would be very easy for folks that don't have children or heirs.

The bitcoin would just get lost .