Gold has long been considered a durable store of value and a hedge against inflation.
Over the long run, however, both stocks and bonds have outperformed the price increase in gold, on average.
Nevertheless, over certain shorter time spans, gold may come out ahead.
Is gold a good investment?
Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.
Is gold a better investment than stocks?
Gold stocks are typically more appealing to growth investors than to income investors. A relatively small increase in the price of gold can lead to significant gains in the best gold stocks and owners of gold stocks typically obtain a much higher return on investment (ROI) than owners of physical gold.
What is the average rate of return on gold?
Rate of return of gold as an investment 2002-2019
At the end of 2019, the rate of return for an investment in gold was approximately 235.75 percent. That means that a one U.S. dollar investment made at the end of 2018 would have been worth 235.75 U.S. dollars at the end of 2019.
Why Investing in gold is a bad idea?
Gold is an unproductive asset. Unlike shares or bonds or deposits, money that you invest in it does not contribute to any kind of economic growth. A pile of gold will stay the same pile of gold no matter how much time passes. The value of gold has always been driven by the fear that other asset classes will lose value.