Thank you so much Richard for providing me with such quality content and knowledge about personal finance. Your videos are a treat and I always enjoy watching them. Keep doing what you are doing, please!
@@ryanwalker3509 Having more industrial uses just means a greater share of the price is real. It really has no bearing on the speculative aspects, which is what this video is talking about with respect to gold.
@@joecurran2811 but there is one big negative for instance in Germany if you buy Gold you pay no taxes if you buy Silver you pay the Standard tax rate of 19%(or at the Moment 16%)
I remember going on a field trip in grade school to the NY federal reserve and seeing the vaults of gold as part of the tour. After which they gave each of us $2,500 in shredded fiat currency. Is interesting how society is veering away from tangible currency.
It's really not. Its pretty much the easiest asset to time. At least for the past 25 years. Just cost average over more than a year or two and you're ahead.
Kyle Netherwood gold funds are only useful if your goals are to profit from price fluctuations where as owning physical gold should be used for capital preservation in the event of hyperinflation.
this is the most legitimate and lowest fee vaulting servie. Financial times writes about it also 100% gold exposure. It took me a while to find them, thank me later with some cool information if you are all about that positivity :D
the hope is that in the event of a hyperinflation event, your contract will settle in cash to cover the difference in buying power, leaving you with more money but the same amount of wealth because the money way "contracted" to buy gold. Just have to make sure your opponent's broker squeezes the margin call out of him, but if the dollar goes Venezuela, your contract can expire deep in the money but still not pay because the other guy fucking left the country. it's legally binding, but you're fucked
Great video, the value of gold depends on with whom one talks. Like any asset, it is an optional choice. Keep your portfolio of assets mixed so you have many options to use in the future.
One topic that'd be neat to cover in the near future would be some volatility in the repurchase agreement (Repo) market. There's been some speculation that it's one of the warnings of a coming recession and such. I've only heard bits and pieces of it, but honestly I value your opinion a lot due to your amazing quality videos :) I understand if you don't want to do it though, since it is a tad US centric.
For me it’s a small hopeful hedge against inflation and diversification. I don’t use it to make money, I’m just trying to not lose money. Plus the good thing about it is, because it’s dents, you can hold a considerable amount of it before you ever need any kind of massive security system. The reason why I don’t bother with ETFs in regard to it is because it’s widely considered that the paper market for it is much larger than the actual physical amount that exists and if you don’t hold it you don’t own it. I guess it’s basically just betting that 5000 years of human history will continue to find it valuable as it’s never truly gone away. I wouldn’t go all in, but I do think it’s smart to have a bit. Also, in a worst case scenario it has proven itself overtime. Look at World War II. Money meant nothing but tradable goods and commodities meant everything, gold, diamonds, textiles. I guess if the inconceivable could ever happen nobody wants to be caught short with their pants down not being able to access their money because they need a power grid to do so
Started to become more financially responsible, your channel helps my only 2 year college degree ass out in the stock market! Thank you for having fun informative and easy to listen to videos!
With gold mining i would like to add the following: If the mine produces $0,10 profit per ounce when the price per ount is $13,50 and the price rise to $14,50 the profit wil (almost) also increase with $1,00... so the fluctuation of price is increased when trading in mines. Silver follows the gold standard but has even more fluctuations then gold. Silver does have more industrial use then gold.
Interesting clip! I don't care about the cons of owning gold, i still want to slowly start buying 1/10 troy oz gold coins to save for my peace of mind.
Gold is beautiful and is a good hedge over the long term. That volatility you see is typically associated with peoples lack of confidence or bullishness in the stock market. In the end however, gold remains true. That is why central banks in China, Russia and the United States hold a portion of their holdings in gold. It's also no secret anymore that anyone trying to create a gold back currency to challenge US dollar hegemony gets bombed into the stone age. That tells me that people still deeply value what gold represents.
I own some gold and silver in my safety deposit box as a small position in my portfolio. For diversification, but also because, well I kind of enjoy it, I like collecting coins and bars. I find the properties of noble metals interesting, and a noteworthy reason it is has and is a storage of value. One reason I do not hold it though is for some apocalyptic financial crash that that some people collect it for. If there was some mad max type situation I figure I have just been holding the metal for the meanest warlord that would emerge on my block and I am perfectly content to the fact I would just be screwed.
Gold is insurance against risk of collapse. Just like any insurance policy, you hope that you never have to use it (and indeed the times when you need to use it are rare), but when you do you're very happy that you have it.
nicolas charalambides: The swiss frank is an safe heaven, as is Japanese yen. Bonds are also a safe heaven. The drawback with safe heavens: the tent to raise in value when u need them. Most of the time u r to late with buying them and then they are expensive..
I invest 5% in physical gold every quarter. I love gold. I buy with the head and the heart with gold. I also have 5% in cash every quarter earning 2.5% for emergencies..
If central bank all around the world has a significant amount of their reserve in gold, you want to have at least a small part of your portfolio exposure to gold. They must know something
Because banks are super long term. Put it this way: if you had an option. 1 billion dollars. Or 1 million worth of gold. And you could only tell your great great great grandson where 1 of the lots are. Which hidden lot would you want him to know?
@@jaysonmaharaj8003 Sure would pick gold in that case. But how many of us want to leave our hard-earned money to our great great great grandsons? I think we should enjoy our money during our lifetime and our descendants should work and make their own money. YOLO!
It is an easy choice if the gold is in todays prices. What are the odds of the 1billion dollars being even worth 1/1000th of its value in that time. Besides given that long dollars probably would not exist, there would be a world digital currency or credit system by then. But I bet Athletes in the future will be still wearing heavy gold necklaces to display their wealth.
Hey Richard, Apparently I'm running a business and instead of investing in stocks, bonds, gold, etc. I'm just investing and reinventing profits into my business and it's productive growth. My question is as long as I'm investing in something which is providing value to the economy. Should I'd be considering to invest into general investment instruments? I'd like to hear your thoughts on the subject if you don't mind.
Hi there, if you're earning a solid return from your business then that's great! One thing to keep in mind is your exposure, however. You may want to look into diversifying your investments if everything is tied up into the business, that way if things go south you have other investments that will pick up the slack. This is especially important if you work for the company, because if the business doesn't do well, you risk both losing your job AND your investment doing poorly. It all depends on your unique circumstance, however, you know your situation better than anyone!
Perhaps someone can help me understand here... Is a gold price graph, like the one used in this video, even a helpful visual? Being given, in this video, that money decreases in VALUE, it would stand to reason that, over time, the PRICE of mostly everything will fluctuate in the short-term, and rise in the long-term. On a graph like that, could it not be just as easily interpreted as a graph of the USD INFLATION vs the more stable gold VALUE? Especially with fiat currency inflation already an explicitly stated factor.
I'm not sure about the graph, but I think it accounts for inflation of the US dollar by using the US dollars' value from one particular time (e.g. 2013 USD)
A chart of the gold price in USD correlates very closely with a chart of USD inflation, although not exactly for two main reasons: 1) The price in USD is also related to the price of USD in every other currency. So it’s possible that while gold is going up in terms of say USD, it might be going down in terms of JPY if USD loses value against JPY. 2) There is a degree of speculation by people looking to make a profit on price swings, so this can have an effect separate from pure inflation.
Yeah. It depends on how you look at it. That college boy uses it to show how volatile a value of gold is (this time measured in US dollars). Somebody else may use it to demonstrate how US dollar gets more and more diluted for whatever reason. The question is: what is US dollar, how do you know how much it is worth? Is it worth the paper and the ink, or is it worth more?
You're saying diversifaction means holding more assets, in order to get a higher reward at lower risk. I'm pretty sure it's about getting a bit lower reward against a much lower risk.
I don't believe it has to come with a lower return; if you buy two assets that are both expected to earn you 8% return, but they have 0 correlation, your risk profile is better than if you just buy one of those assets. Your expected return doesn't change, but you face lower risk
In general you are optimizing for your maximum return given a certain risk tolerance. Therefore if you remove some risk from your portfolio you can now add some higher yielding, but riskier assets to increase overall total expected yields.
The Plain Bagel That’s true for this specific example, because Gold’s correlation with other assets (stocks) is not 0, and it’s actually negative, meaning most of the time gold goes up when stocks go down. So you’re not getting a higher return, you’re just having a lower risk because you’re hedging your bets as you pointed out in the video!
@@ThePlainBagel the cost of hedging is rarely 0 though. a) completely unrelated assets are few and far between b) for most hedges you pay an opportunity cost. If you know how to hedge through 0 correlation assets with 0 opportunity cost, you should apply for a senior position at a big hedge fund immediatly ;)
@@tomcads1604 I agree, but diversification is different from hedging. Buying something with 0 correlation doesn't hedge something; buying something with -1 correlation does. If you were an airline company that wanted to hedge jet fuel prices, you could go long an oil future (which, theoretically, offers a -1 correlation to your current oil exposure). If oil prices go up, your future gains value, and your business loses value (jet fuel becomes more expensive). Your hedge therefore offsets the effect of rising or falling prices, removing the risk. If the airline wanted 0 correlation, they would buy something unrelated to jet fuel prices (it's difficult to find something with NO correlation, but they could buy something like stock in a local-sourcing art supplies company). This clearly wouldn't offset jet fuel prices (i.e. it would not hedge), but it would have little to no correlation (i.e. it WOULD diversify)! So hedging does typically come with a cost, but diversification may not necessarily if you believe the art supplies company will also do well.
It would be fascinating to see what would happen if we went back on gold (I don't see that happening in the short term). I still prefer owning quality dividend companies in my portfolio, but a lot of smarter investors hold a small % of their wealth in gold.
We would run into problems when we needed to expand money supply same as the last time. There's really no need to go back as long as our government keeps issuing gold money (e.g. maple leaf, liberty counsel etc.). Returns are 10% p.a. on average so it does make sense to hold some imo. You can also generate a good yield (relative to sovereign). Its basically like holding a bond with no government attached. Currency exposure without a central bank attempting to devalue the currency. The correlations are helpful as well. So if you're trying to offset some currency risk why not use gold?
I think gold is a good addition for the wealthy, rather than newer investors. Gold is an insurance against the economy. If all else fails, a rich investor will still be able to be wealthy just from their gold. However, it's not very useful for smaller investors whom wouldn't be able to hold enough gold for it to be an insurance. Even so, I think holding physical gold should be the choice made. Then, you really are insured against anything. Great one for those who believe in the potential threat of systemic collapse.
@@stevenkippax I would argue the opposite. Rich investors can hold companies and real estate, whereas poorer investors who can't afford such assets can but small quantities of gold to accomplish the same thing (hedge against inflation and currency risks). You cant buy $1,000 of diversified equities or real estate but you can buy a half ounce of gold.
Question: So I've been puzzled by something. When watching the USGG10YR, the US 10-year bond yield, on Bloomberg, they list it as green/positive when it goes down. Why would a decrese have a positive outcome?
iOlsen-_- Yup. There’s a section in this article titled “Bond Yield Vs. Price” if you want a more detailed explanation. www.investopedia.com/terms/b/bond-yield.asp
I think you can use clips as long as you are using them for education purposes. Education videos have slightly more lenient rules for copyright infringement.
Ehhh long story short... don't put all your eggs in one basket...and just use gold as a hedge against inflation and keep it for the long term as it will be a nice counterbalance to retain profits in your portfolio
@@Islam-gy9lj Well it is still speculation because you can not predict supply and demand, but you can calculate cash flows for stocks and real estate that you are comfortable to hold even though nobody wants to buy it from you at a higher price, which is the only way you make money on gold.
@@TheIcelandicInvestor Actually, we can predict the supply and demand for Gold. Gold is limited so the supply would run out eventually and the demand of Gold rises when there is a financial crisis ahead or when people think there is a crisis ahead. Gold is a safe haven asset. Nobody said that an investment has to provide cash flow to be called an investment. Tesla doesn't give dividends even Warren buffet company don't provide dividends so are these called speculations as well? We know that's not correct. If I believe Warren buffet's company would do well in the future I would buy stocks of the company and then when the price rises I will sell. And yes like I mentioned there is speculation in every investment if warren buffet's company goes bankrupt tmr then I would lose everything. So I am speculating that the company I am investing in wouldn't go bankrupt. And that's why every investment has some form of speculation.
Wait ... The oil part when you say that oil prices have taken a hit when new wells are discovered isn't totally accurate right ? I believe a few years ago we added a substantial amount of oil to our reserves and oil prices went up, this isn't the only time. Shouldn't we give more nuance ? (As always haha)
A big difference at the moment is that the industrial apolications of silver contribute a larger percentage to it's current value (around 12-14$ of the 17 per ounce)
Gold is risk free; as the definition of value, one will never either gain or lose when trading in it. What changes are the values of national currencies.
That's not strictly speaking true. There are no risk-free assets (treasury bills are the only instrument treated as risk free in financial models, and even those aren't truly protected from risk), and the value (not just price) of gold is influenced by its supply, so that can certainly change. If next year we have an over-production of gold, it's value will decline, and that will impact your investments in gold.
@@ThePlainBagel I think this is largely a matter of perspective. From my point of view, gold is the ultimate standard of value, against which everything else is measured. Like the international standard meter, in Paris, it is effectively eternal and immutable. But... temporary fluctuations in available quantities can, I'll grant, alter the current market value. Also, transaction costs eat part of the value every time anything is bought/sold. So you're right that gold isn't risk free; it's a guaranteed loss. The question, then, is whether one stands to lose or gain in other, productive vehicles.
At times silver was a more common currency than gold. Gold was used in babylon as tokens for food. Remember the people who have gold gain wealth when others buy gold and drive up the price.
I would say that is the same for any asset, commodity or good. Look at Bitcoin, those that had bitcoin made fortunes when the price was drove up. Just as many late bitcoin holders are continually pumping to this day. I would say though that people that have gold already have wealth. Prices changes are irrelevant unless you need to trade it for fiat or goods. Would say that an athlete with a $20,000 necklace of gold is trying to profit from gold or display his wealth?
1:50 why gloss over the fact that gold is the most important metal for jewellery manufacture? The jewellery industry has a history and there are jewellery retailers and manufacturers in every town of any reasonable size. People aren't going to stop wearing jewellery any time soon and there are reasons why gold is the metal that most manufacturing jewellers prefer to use.
I don't understand the value in gold. It's for when the market pretty much crashes and we lose most of everything. I think just having a good enough cash stashed away to survive a depression it won't matter because your investments will recover like it always has. If they don't then what are you going to do with a gold? You're better off investing in a farm, farming lessons, guns and ammo.
True, but the whole point is for it to preserve wealth, not grow it. And when the only thing that publicly traded companies are producing are losses, then it’s better to have gold.
While I certainly do appreciate Buffet's perspective on precious metals and agree with him that stocks are preferential in most cases, his attitude really under pins the core principles of money. It is absolutely impossible for any nation to print it's way to prosperity. As national debts continue to reach untenable levels, the reserve banks will be called upon to monetize those debts, which will result in significant inflation. Historically significant inflation (or deflation) has been damaging for stock returns. It's best to hold physical gold (and other precious metals) as an insurance policy in the event of wildly fluctuating paper assets. The Central Banks understand this concept all too well. Their actions betray their words when they are in fact the biggest hoarders of Gold bullion in the world.
@@hannessteffenhagen61 how do you view paper currency? How many times has gold been worthless? Zero. How many paper currency's have been worthless? Almost all of them.
i want yum Nobody I know nor have ever known have ever used gold for a transaction. Bitcoin has no use for investing, payment, or any other field as I can see, as if you fund your wallet today and hope to pay your bills tomorrow, your money might be sitting at half of what it was.
I love those commercials which urge people to buy gold because it is better than money - "Send us your money!" Okay, the message is send us money and we'll send you gold. But wait, I thought you said gold was better so why don't you just keep yours. Of course because the gold merchants know money is better because it can be invested or even used to buy stuff. It reminds me of the guy on the beach selling maps of where to find treasure, and of course the rubes who fall for it don't use their critical thinking skills.
@@darkorbitpro1 do you really think it will be cost effective at 1500 an oz. How much do you think it cost to go to an asteroid? I dont see that in the near future, and I certainly dont see it paying for itself as an investment.
@@ryanwalker3509 going to asteroid only costs a fraction of what it used to cost, because of spacex reusable rocket tech improvements, getting asteroid back to earth is the hard part, because you would need to bring enough fuel to move the asteroid all the way to earth and then safely land it somewhere. Mining in space will be the next 100 trillion dollar business, but we are still 100 years away from that....
- so you can not own gold without trust , but you can own something with similar properties designed for digigtal age , without trust , what could it be ?
Problem is there are multiple crypto currencies and anyone can make them. A sudden shift from one crypto to another and your crypto might lose value. There's not going to be another gold. Silver and copper to an extent can be used but they aren't really trying to compete with gold but are separate metals with their own use and quality.
Next financial crisis is around the corner. Government's been throwing heaps of over-inflated currency at the repo market. Stock market ended the year on an artificial high note for Q4, yet we haven't even fully recovered from 08'. If you haven't got at least a year's wages in bullion you're risking more than you think. Only safer investment is 5.56.
Well the person who stole it saw some value in it and probably wants to exchange it for money which is decided by those papers that we trade. In a way it would matter.
Yes, because we have the right to exchange those papers for the gold it represents. It would defeat the purpose of having the gold standard if we weren’t able to trade our notes for the physical gold.
Gold has a single feature most Northern Americans don’t think about. If a war breaks out and everything goes to hell fleeing is much safer with a handful of kangaroos in your pocket. You can sell them in every place in the world.
Yes and no. Also betting that as it has continued to be available throughout the civilisations, different currencies, different systems that it will continue to do so regardless. It’s not a sure thing but there is no other asset on earth apart from food and water that has such a long history of value
In India, Gold = money = status. What also helps in keeping the value of gold high in India is having bogus demonetisation policies made by wannabee economists. In any case, income doesn't matter: storing heaps of gold at home makes you ULTIMATE prosperity/marriage material. :)
"Central bank (fiat) currency 'tends' to lose value over time"... yes... over 500 fiat currencies have failed in history, the current iteration of the USD has lost over 95% of its purchasing power to inflation... go on...
gee it's almost as if someone predicted all of this and described in excruciating detail how capitalism would collapse. Karl Marx, btw. predicted fiat currency, negative rates, massive debts, etc.
The key takeaway: It's a terrible investment, it's not as uncorrelated to the market as proponents preach and as a store of value it's very questionable.
Gold stores wealth. In ancient times it could buy you a fine horse. Today it can buy you alot more stuff due to inflation of goods. Gold is $1744 today. That can buy you a used car or 1744 of dollar tree goods. The gold price didnt rise there was just an inflation of goods. The gold is the numerator and goods the denominator.
Gold is speculative? I don't think so. Think about it, gold has been used as money and a store of value for thousands of years. Its place in history extends far beyond coins, bars and jewelry. Whether you believe in it or not, gold has somehow outlasted alternative currency for thousands of years. One of the biggest misconceptions about gold is that it's a speculative element. The point of gold isn’t what it can produce; instead, its value comes from the fact that it’s a source of protection in times of crisis. Gold price can go up or it can go down, but gold itself is permanent. It’s an excellent hedge in terms of rising inflation. Plus, if you focus solely on the price you lose a lot to information value. There’s a very distinct difference between the gold price and the price of gold. The price of gold refers to the cost of putting a coin or a bar in your hand. It represents the cost of the physical metal itself. Meanwhile the gold price has become nothing more than a reference point. People focus on the price of gold…but those are the people that focus on the price of everything; and you know, people know the price of everything and the value of nothing.
I read a story of europeans fleeing ww2 and the ship captains would only let them on if the refugees had gold to bribe them with. This is why having gold might be a good thing. it might get you out of a pinch someday. plus you can give it to your kids or whatever so the effect continues.
MrBigEnchilada the point was the price of gold is mostly speculative in price and not based off the same analysis methods used to evaluate stocks and bonds. Whether you think gold or bitcoin is better they both offer similar investing points
I believe you're confusing "safety" with intrinsic value. Gold is valuable because it is a rare earth metal that isn't easily reproduced. You can confidently buy physical gold knowing that it will retain some value that can be used for human exchange. Whereas paper assets (which technically aren't even paper anymore because it's all digitized on a computer) doesn't have any redeeming qualities beyond what a corporation or government is willing to give you for it. Gold was here on Earth long before humanity arrived, and it'll still be here after we're long gone.
Charles Rebbel a lot of things were here on earth before humans. Gold has conductivity qualities and it’s shiny, but it’s use just like diamonds does not justify its value. For instance what can you do with gold if the market wasn’t there to sell it? You can’t eat it. You probably won’t have a smelting machine so you can’t melt it. It takes on an inflated value because humans have arbitrarily said so. Would you rather have 1 million dollars of gold, or land, or even oil?
@@NotShowingOff Get rid of the 7 billion humans, then your point has some validity. Until then, land, gold, and oil are all relatively the same in terms of value. (depends on the land)
Two years ago you would be correct. Now you are just dead wrong lol. Gold serve as a good baseline security so one wouldn’t get hurt as bad in the current and coming crisis.
Not just inflation. Gold does not oxidise, it is a reliable store of wealth, and it can be used for more than just currency if things go south. Instability, war and displacement mean a human equipped with some gold will have an advantage, all things being equal, over those humans who demand it. Gold also plays a role when it comes to relationships and marriage etc. if things go really wrong Gold is the back-up plan.
Everything you said is full of "sales pitchy" stuff and inaccurate. It is not a "store of value" since it's speculative and volatile. The other stuff you mentioned is hard to even follow. Marriage? "Things going really wrong"?
@@Omar-et7sb Nah, I never said to buy gold so my rant isn't sales pitchy rather part chemistry, part scarcity (economics) and a bit of self-preservation. Indeed, part of the marriage proposal involving a gold ring is a kind of insurance. You need to read up on sociology in order to understand marriage arrangements then.
@@Omar-et7sb Also, maybe you can suggest some alternative stores of value? Property isn't bad but it's hard to relocate land if war breaks out. Gold can be taken anywhere in the world, so when you pick up where again you'll have an advantage over those who don't have gold opting for bread (perishables) or crypto (virtual). Just open any intro to economics text to understand that gold and other precious metals are defined as stores of value.
@@eben3357 Being condescending ("open any textbook on economics or sociology" blah blah) doesn't make any of your rhetoric accurate, mate. Gold is a terrible investment which is a fact. It's a terrible store of value (only thing worse is probably crypto), and you again go into some weird apocalyptic scenarios in which owning guns would probably be better than gold anyways (again, based in your examples).
@@Omar-et7sb If you think gold is a bad investment then take that matter up with the author of this video rather than straw-manning, it's getting a bit conceited; for the second time I have not advised people to just go out and buy gold bullion if that is what you think. Pardon the pun, but strong-arming with guns is really going down a rabbit hole, unless you are talking about arms dealing, which is usually illegal...
I’ve been an interbank professional gold trader for over 30-years, and I congratulate you on the clarity and scope of this presentation. 👍🏻
Thank you so much Richard for providing me with such quality content and knowledge about personal finance. Your videos are a treat and I always enjoy watching them. Keep doing what you are doing, please!
Richard, thanks for all of your content. You do such a great job and present the topics in such a clear yet thorough way.
Great information. I wonder if could do a video on silver. Maybe showing the similarities and differences between silver and gold
They're effectively the same in all respects covered in the video.
@@Hyperpandas silver has far more industrial uses. Both are limited in supply. Unlike the dollar.
@@ryanwalker3509 Having more industrial uses just means a greater share of the price is real. It really has no bearing on the speculative aspects, which is what this video is talking about with respect to gold.
Silver is a lot cheaper than gold.
@@joecurran2811 but there is one big negative for instance in Germany if you buy Gold you pay no taxes if you buy Silver you pay the Standard tax rate of 19%(or at the Moment 16%)
I remember going on a field trip in grade school to the NY federal reserve and seeing the vaults of gold as part of the tour. After which they gave each of us $2,500 in shredded fiat currency. Is interesting how society is veering away from tangible currency.
This guy deserves at least 500k subs.. learnt so much just watching this stuff.
Verb Pierce remember to smash that like button for the youtube algorithm!
Second that!
Update: He got that and more. Congrats bagel man!
You are always coming up with interesting ideas for your videos. Well done and keep up the great work :)
Thanks for pointing out the downsides of gold, too. I think it would hand been good to mention that market timing is way easier said than done.
It's really not. Its pretty much the easiest asset to time. At least for the past 25 years. Just cost average over more than a year or two and you're ahead.
Gold funds seem to defeat the point in owning gold.
Kyle Netherwood gold funds are only useful if your goals are to profit from price fluctuations where as owning physical gold should be used for capital preservation in the event of hyperinflation.
Funds can fail. There are future gold fund which doesn't actually own any gold. Some gold are fund in US and England which can freeze your gold.
this is the most legitimate and lowest fee vaulting servie. Financial times writes about it also 100% gold exposure. It took me a while to find them, thank me later with some cool information if you are all about that positivity :D
If you dont hold your bullion, you dont own it. Derivatives mean that each oz has many owners. Be careful storing off site or buying paper bullion.
the hope is that in the event of a hyperinflation event, your contract will settle in cash to cover the difference in buying power, leaving you with more money but the same amount of wealth because the money way "contracted" to buy gold. Just have to make sure your opponent's broker squeezes the margin call out of him, but if the dollar goes Venezuela, your contract can expire deep in the money but still not pay because the other guy fucking left the country. it's legally binding, but you're fucked
I don't know what's better, the editing, or the writing
Why not both
All of it is straight to the point. Great vid
Thank you for explaining these in an approachable way.
Great video, the value of gold depends on with whom one talks. Like any asset, it is an optional choice. Keep your portfolio of assets mixed so you have many options to use in the future.
i really like how you rehearse your videos so that you dont have those weird ass cuts most newbs make on their videos.
One topic that'd be neat to cover in the near future would be some volatility in the repurchase agreement (Repo) market. There's been some speculation that it's one of the warnings of a coming recession and such. I've only heard bits and pieces of it, but honestly I value your opinion a lot due to your amazing quality videos :) I understand if you don't want to do it though, since it is a tad US centric.
For me it’s a small hopeful hedge against inflation and diversification. I don’t use it to make money, I’m just trying to not lose money. Plus the good thing about it is, because it’s dents, you can hold a considerable amount of it before you ever need any kind of massive security system. The reason why I don’t bother with ETFs in regard to it is because it’s widely considered that the paper market for it is much larger than the actual physical amount that exists and if you don’t hold it you don’t own it. I guess it’s basically just betting that 5000 years of human history will continue to find it valuable as it’s never truly gone away. I wouldn’t go all in, but I do think it’s smart to have a bit. Also, in a worst case scenario it has proven itself overtime. Look at World War II. Money meant nothing but tradable goods and commodities meant everything, gold, diamonds, textiles. I guess if the inconceivable could ever happen nobody wants to be caught short with their pants down not being able to access their money because they need a power grid to do so
Thank for for this gold bagel
This channel is gold, Jerry, gold!
Great Video! I whatch every time a can! what program do you use to edit videos?
GOLD IS MONEY . Everything else is Credit. -JP Morgan
Gold is a metal. That all.
Gold's price is pretty unstable for being money. That statement only made sense to me as long as money as backed by gold
Started to become more financially responsible, your channel helps my only 2 year college degree ass out in the stock market! Thank you for having fun informative and easy to listen to videos!
Could you please make a video explaining UK taxation of stocks. Thanks
Nothing is a perfect asset.
Slavery is cool and good
@I yeah and no matter how the world changes they can just marry rich
With gold mining i would like to add the following:
If the mine produces $0,10 profit per ounce when the price per ount is $13,50 and the price rise to $14,50 the profit wil (almost) also increase with $1,00... so the fluctuation of price is increased when trading in mines.
Silver follows the gold standard but has even more fluctuations then gold. Silver does have more industrial use then gold.
Congratulations and all the best ❤️
It should be considered that it’s not gold’s price moving up and down, but the dollar moving in relation to gold, which ideally, is a fixed value.
Except it's not? Gold isn't magic. Its value changes over time just like any other thing.
If that were true the prices of all products would change in correlation to gold but they don't
I think you are actually educating people and are more fiduciary than almost anyone in the USA
The most insightful thing you said :gold price is speculative. It's not a thing that produces and output.
What do you call jewellery?
Interesting clip! I don't care about the cons of owning gold, i still want to slowly start buying 1/10 troy oz gold coins to save for my peace of mind.
Gold is beautiful and is a good hedge over the long term. That volatility you see is typically associated with peoples lack of confidence or bullishness in the stock market. In the end however, gold remains true. That is why central banks in China, Russia and the United States hold a portion of their holdings in gold. It's also no secret anymore that anyone trying to create a gold back currency to challenge US dollar hegemony gets bombed into the stone age. That tells me that people still deeply value what gold represents.
Illuminati
F for Gaddafi
I love this comment.
I own some gold and silver in my safety deposit box as a small position in my portfolio. For diversification, but also because, well I kind of enjoy it, I like collecting coins and bars. I find the properties of noble metals interesting, and a noteworthy reason it is has and is a storage of value. One reason I do not hold it though is for some apocalyptic financial crash that that some people collect it for. If there was some mad max type situation I figure I have just been holding the metal for the meanest warlord that would emerge on my block and I am perfectly content to the fact I would just be screwed.
Gold is insurance against risk of collapse. Just like any insurance policy, you hope that you never have to use it (and indeed the times when you need to use it are rare), but when you do you're very happy that you have it.
Wouldn’t options be a better alternative (instead if futures) as they can be used at any time (instead of a desired date)
Great video! Can you do one on safe haven assets?
Thank you plain bagel.
nicolas charalambides:
The swiss frank is an safe heaven, as is Japanese yen. Bonds are also a safe heaven.
The drawback with safe heavens: the tent to raise in value when u need them. Most of the time u r to late with buying them and then they are expensive..
Gert-Jan K is the USD safe haven too?
I invest 5% in physical gold every quarter. I love gold. I buy with the head and the heart with gold. I also have 5% in cash every quarter earning 2.5% for emergencies..
A 2.5 % emergency fund?
If central bank all around the world has a significant amount of their reserve in gold, you want to have at least a small part of your portfolio exposure to gold. They must know something
Because banks are super long term. Put it this way: if you had an option. 1 billion dollars. Or 1 million worth of gold. And you could only tell your great great great grandson where 1 of the lots are. Which hidden lot would you want him to know?
They don't. They just toy about with investor's minds: encourage/discourage speculation; rinse repeat.
@@jaysonmaharaj8003 Sure would pick gold in that case. But how many of us want to leave our hard-earned money to our great great great grandsons? I think we should enjoy our money during our lifetime and our descendants should work and make their own money. YOLO!
It is an easy choice if the gold is in todays prices. What are the odds of the 1billion dollars being even worth 1/1000th of its value in that time. Besides given that long dollars probably would not exist, there would be a world digital currency or credit system by then. But I bet Athletes in the future will be still wearing heavy gold necklaces to display their wealth.
They must be hedging their bets on it for a reason at least.
Hey Richard,
Apparently I'm running a business and instead of investing in stocks, bonds, gold, etc. I'm just investing and reinventing profits into my business and it's productive growth.
My question is as long as I'm investing in something which is providing value to the economy. Should I'd be considering to invest into general investment instruments?
I'd like to hear your thoughts on the subject if you don't mind.
Hi there, if you're earning a solid return from your business then that's great! One thing to keep in mind is your exposure, however. You may want to look into diversifying your investments if everything is tied up into the business, that way if things go south you have other investments that will pick up the slack. This is especially important if you work for the company, because if the business doesn't do well, you risk both losing your job AND your investment doing poorly. It all depends on your unique circumstance, however, you know your situation better than anyone!
Hey Richard,
Thank you for your reply and I'm looking forward to diversification, slowly but surely now on.
Possible future topic: commodities in a DIY portfolio investor :)
Gold has the smallest bid ask spread. Can you comment on that?
Perhaps someone can help me understand here... Is a gold price graph, like the one used in this video, even a helpful visual?
Being given, in this video, that money decreases in VALUE, it would stand to reason that, over time, the PRICE of mostly everything will fluctuate in the short-term, and rise in the long-term.
On a graph like that, could it not be just as easily interpreted as a graph of the USD INFLATION vs the more stable gold VALUE? Especially with fiat currency inflation already an explicitly stated factor.
I'm not sure about the graph, but I think it accounts for inflation of the US dollar by using the US dollars' value from one particular time (e.g. 2013 USD)
A chart of the gold price in USD correlates very closely with a chart of USD inflation, although not exactly for two main reasons:
1) The price in USD is also related to the price of USD in every other currency. So it’s possible that while gold is going up in terms of say USD, it might be going down in terms of JPY if USD loses value against JPY.
2) There is a degree of speculation by people looking to make a profit on price swings, so this can have an effect separate from pure inflation.
Yeah. It depends on how you look at it. That college boy uses it to show how volatile a value of gold is (this time measured in US dollars). Somebody else may use it to demonstrate how US dollar gets more and more diluted for whatever reason.
The question is: what is US dollar, how do you know how much it is worth? Is it worth the paper and the ink, or is it worth more?
You're saying diversifaction means holding more assets, in order to get a higher reward at lower risk. I'm pretty sure it's about getting a bit lower reward against a much lower risk.
I don't believe it has to come with a lower return; if you buy two assets that are both expected to earn you 8% return, but they have 0 correlation, your risk profile is better than if you just buy one of those assets. Your expected return doesn't change, but you face lower risk
In general you are optimizing for your maximum return given a certain risk tolerance. Therefore if you remove some risk from your portfolio you can now add some higher yielding, but riskier assets to increase overall total expected yields.
The Plain Bagel That’s true for this specific example, because Gold’s correlation with other assets (stocks) is not 0, and it’s actually negative, meaning most of the time gold goes up when stocks go down. So you’re not getting a higher return, you’re just having a lower risk because you’re hedging your bets as you pointed out in the video!
@@ThePlainBagel the cost of hedging is rarely 0 though.
a) completely unrelated assets are few and far between
b) for most hedges you pay an opportunity cost.
If you know how to hedge through 0 correlation assets with 0 opportunity cost, you should apply for a senior position at a big hedge fund immediatly ;)
@@tomcads1604 I agree, but diversification is different from hedging. Buying something with 0 correlation doesn't hedge something; buying something with -1 correlation does.
If you were an airline company that wanted to hedge jet fuel prices, you could go long an oil future (which, theoretically, offers a -1 correlation to your current oil exposure). If oil prices go up, your future gains value, and your business loses value (jet fuel becomes more expensive). Your hedge therefore offsets the effect of rising or falling prices, removing the risk.
If the airline wanted 0 correlation, they would buy something unrelated to jet fuel prices (it's difficult to find something with NO correlation, but they could buy something like stock in a local-sourcing art supplies company). This clearly wouldn't offset jet fuel prices (i.e. it would not hedge), but it would have little to no correlation (i.e. it WOULD diversify)!
So hedging does typically come with a cost, but diversification may not necessarily if you believe the art supplies company will also do well.
Watching this now that inflation is becoming a hot topic; I'm not a huge fan of crypto and was wondering what other decent alternatives are out there
8:08 Is he saying Bunny? I swear he said bunny xD
As an investor i think gold is not a good asset because it doesn't grow at all but as my own individual i always like the glitter of gold.
Yeah but if the US dollar collapses you don’t loose it all.
@@nathanglessing9010 If the dollar were to collapse that would mean that the world is in trouble and probably we are living in some nuclear fallout.
Agtra boy study your monetary history, 100% of fiat currency’s have failed.
I ate a plain bagle with cream cheese and coffee this morning , at McDonald's.
Oh
First rule for investment: Diversify your portfolios
First rule: dont lose Money
Diversity of you don't understand your investments property
It would be fascinating to see what would happen if we went back on gold (I don't see that happening in the short term). I still prefer owning quality dividend companies in my portfolio, but a lot of smarter investors hold a small % of their wealth in gold.
We would run into problems when we needed to expand money supply same as the last time. There's really no need to go back as long as our government keeps issuing gold money (e.g. maple leaf, liberty counsel etc.).
Returns are 10% p.a. on average so it does make sense to hold some imo. You can also generate a good yield (relative to sovereign). Its basically like holding a bond with no government attached. Currency exposure without a central bank attempting to devalue the currency.
The correlations are helpful as well. So if you're trying to offset some currency risk why not use gold?
I think gold is a good addition for the wealthy, rather than newer investors. Gold is an insurance against the economy. If all else fails, a rich investor will still be able to be wealthy just from their gold. However, it's not very useful for smaller investors whom wouldn't be able to hold enough gold for it to be an insurance.
Even so, I think holding physical gold should be the choice made. Then, you really are insured against anything. Great one for those who believe in the potential threat of systemic collapse.
@@stevenkippax I would argue the opposite. Rich investors can hold companies and real estate, whereas poorer investors who can't afford such assets can but small quantities of gold to accomplish the same thing (hedge against inflation and currency risks). You cant buy $1,000 of diversified equities or real estate but you can buy a half ounce of gold.
dhagos index funds
@@dhagos why can't you buy $1000 of the S&P500? That's about as diverse as you can get.
Ok now do a video on the dollar and why people invest in it 😁
Because uncle Sam has lots of guns.
@@fatrat600284 that is a good start
I think a chart of gold price that is adjusted for inflation should have been used
Question: So I've been puzzled by something. When watching the USGG10YR, the US 10-year bond yield, on Bloomberg, they list it as green/positive when it goes down. Why would a decrese have a positive outcome?
A decrease in yield for a fixed rate bond would be due to an increase in the price of the bond.
@@duncanfromunderthebridge Gotcha, so by listing that the yield is going down, they are saying that the price is up, correct?
iOlsen-_- Yup. There’s a section in this article titled “Bond Yield Vs. Price” if you want a more detailed explanation.
www.investopedia.com/terms/b/bond-yield.asp
How are you able to use that scrooge mcduck clip without getting in trouble with copyright?
My understanding is that 10-15 second clips with voice overs fall under fair use.
@@ThePlainBagel Understood! Great video by the way
I think you can use clips as long as you are using them for education purposes. Education videos have slightly more lenient rules for copyright infringement.
National historic icons are not subject to copyright. Scrooge McDuck belongs on Mount Rushmore.
Ehhh long story short... don't put all your eggs in one basket...and just use gold as a hedge against inflation and keep it for the long term as it will be a nice counterbalance to retain profits in your portfolio
Gold is a non-productive assets, it can hardly be thought of as an investment but more of a speculative currency.
Every investment has some form of speculation. And also gold is just like an investment like stocks.
@@Islam-gy9lj Okay so how do you calculate the intrinsic value of gold?
@@TheIcelandicInvestor
Supply and demand
@@Islam-gy9lj Well it is still speculation because you can not predict supply and demand, but you can calculate cash flows for stocks and real estate that you are comfortable to hold even though nobody wants to buy it from you at a higher price, which is the only way you make money on gold.
@@TheIcelandicInvestor
Actually, we can predict the supply and demand for Gold. Gold is limited so the supply would run out eventually and the demand of Gold rises when there is a financial crisis ahead or when people think there is a crisis ahead. Gold is a safe haven asset.
Nobody said that an investment has to provide cash flow to be called an investment. Tesla doesn't give dividends even Warren buffet company don't provide dividends so are these called speculations as well? We know that's not correct. If I believe Warren buffet's company would do well in the future I would buy stocks of the company and then when the price rises I will sell. And yes like I mentioned there is speculation in every investment if warren buffet's company goes bankrupt tmr then I would lose everything. So I am speculating that the company I am investing in wouldn't go bankrupt.
And that's why every investment has some form of speculation.
Wait ... The oil part when you say that oil prices have taken a hit when new wells are discovered isn't totally accurate right ? I believe a few years ago we added a substantial amount of oil to our reserves and oil prices went up, this isn't the only time. Shouldn't we give more nuance ? (As always haha)
Oil prices have gotten down with Fracking.
what about silver? same fate as gold?
Bob Lee The spreads are huge though.
A big difference at the moment is that the industrial apolications of silver contribute a larger percentage to it's current value (around 12-14$ of the 17 per ounce)
Gold is risk free; as the definition of value, one will never either gain or lose when trading in it. What changes are the values of national currencies.
That's not strictly speaking true. There are no risk-free assets (treasury bills are the only instrument treated as risk free in financial models, and even those aren't truly protected from risk), and the value (not just price) of gold is influenced by its supply, so that can certainly change. If next year we have an over-production of gold, it's value will decline, and that will impact your investments in gold.
@@ThePlainBagel I think this is largely a matter of perspective. From my point of view, gold is the ultimate standard of value, against which everything else is measured. Like the international standard meter, in Paris, it is effectively eternal and immutable. But... temporary fluctuations in available quantities can, I'll grant, alter the current market value. Also, transaction costs eat part of the value every time anything is bought/sold. So you're right that gold isn't risk free; it's a guaranteed loss. The question, then, is whether one stands to lose or gain in other, productive vehicles.
At times silver was a more common currency than gold. Gold was used in babylon as tokens for food. Remember the people who have gold gain wealth when others buy gold and drive up the price.
I would say that is the same for any asset, commodity or good. Look at Bitcoin, those that had bitcoin made fortunes when the price was drove up. Just as many late bitcoin holders are continually pumping to this day.
I would say though that people that have gold already have wealth. Prices changes are irrelevant unless you need to trade it for fiat or goods.
Would say that an athlete with a $20,000 necklace of gold is trying to profit from gold or display his wealth?
Central Banks hold gold as a tier 1 asset , become your own central bank, own gold!
FFS , how long do a man have to scroll down to find crypto buffs
Can you do a breakdown on silver as an investment metal?
Its same thing but cheaper...
1:50 why gloss over the fact that gold is the most important metal for jewellery manufacture? The jewellery industry has a history and there are jewellery retailers and manufacturers in every town of any reasonable size. People aren't going to stop wearing jewellery any time soon and there are reasons why gold is the metal that most manufacturing jewellers prefer to use.
I don't understand the value in gold. It's for when the market pretty much crashes and we lose most of everything.
I think just having a good enough cash stashed away to survive a depression it won't matter because your investments will recover like it always has.
If they don't then what are you going to do with a gold? You're better off investing in a farm, farming lessons, guns and ammo.
I dont invest in gold because it doesn't produce anything
-warren buffet
True, but the whole point is for it to preserve wealth, not grow it. And when the only thing that publicly traded companies are producing are losses, then it’s better to have gold.
While I certainly do appreciate Buffet's perspective on precious metals and agree with him that stocks are preferential in most cases, his attitude really under pins the core principles of money. It is absolutely impossible for any nation to print it's way to prosperity. As national debts continue to reach untenable levels, the reserve banks will be called upon to monetize those debts, which will result in significant inflation. Historically significant inflation (or deflation) has been damaging for stock returns. It's best to hold physical gold (and other precious metals) as an insurance policy in the event of wildly fluctuating paper assets.
The Central Banks understand this concept all too well. Their actions betray their words when they are in fact the biggest hoarders of Gold bullion in the world.
@Gold Stacking Silver is meant to have multiple industrial properties
Gold produces jewellery. And is used in many mechanical components.
I'd rather buy land, specially in Brazil because is not difficult to produce here
you’ve neglected to address it’s value as a low-information internet meme
Buy gold when no one wants it. Buy stocks when no one wants it.
I dont see the attraction people have to gold in this age. I see gold as entiraly worthless outside its use in electronics.
U need some history to understand gold's value.
@@hongyang3620 Any critical analysis of history would show you that this whole "gold has some intrinsic value" thing has never been more than a myth.
@@hannessteffenhagen61 how do you view paper currency? How many times has gold been worthless? Zero. How many paper currency's have been worthless? Almost all of them.
Donkey, as useless as your english spelling class in school.
Can’t really compare gold to a cryptocurrency that fluctuates 40% in 24 hrs
No, not as a value standard. But more as an use. Like, people pay with gold, and also with bitcoin for example.
i want yum
Nobody I know nor have ever known have ever used gold for a transaction.
Bitcoin has no use for investing, payment, or any other field as I can see, as if you fund your wallet today and hope to pay your bills tomorrow, your money might be sitting at half of what it was.
@@donb2527 Yeah, you've never used gold as a bullion. But probably that money could've been exchanged for gold
@@donb2527 Unless you've never been out of america...
i want yum
I’ve never been to America. And don’t know how that’s related
I love those commercials which urge people to buy gold because it is better than money - "Send us your money!" Okay, the message is send us money and we'll send you gold. But wait, I thought you said gold was better so why don't you just keep yours. Of course because the gold merchants know money is better because it can be invested or even used to buy stuff. It reminds me of the guy on the beach selling maps of where to find treasure, and of course the rubes who fall for it don't use their critical thinking skills.
Ron Swanson would say otherwise
Imagine if someone successfully brings an asteroid full of gold back to Earth
Imagine you saving cash aside and watching it lose purchasing power over time xD
Which one's more likely in your lifetime?
@@FabiWann I'll be optimistic and said both
well depending on the size of the asteroid gold value will go down or even get destroyed
@@darkorbitpro1 do you really think it will be cost effective at 1500 an oz. How much do you think it cost to go to an asteroid? I dont see that in the near future, and I certainly dont see it paying for itself as an investment.
@@ryanwalker3509 going to asteroid only costs a fraction of what it used to cost, because of spacex reusable rocket tech improvements, getting asteroid back to earth is the hard part, because you would need to bring enough fuel to move the asteroid all the way to earth and then safely land it somewhere.
Mining in space will be the next 100 trillion dollar business, but we are still 100 years away from that....
Peter schiff
- so you can not own gold without trust , but you can own something with similar properties designed for digigtal age , without trust , what could it be ?
Problem is there are multiple crypto currencies and anyone can make them. A sudden shift from one crypto to another and your crypto might lose value.
There's not going to be another gold. Silver and copper to an extent can be used but they aren't really trying to compete with gold but are separate metals with their own use and quality.
Next financial crisis is around the corner. Government's been throwing heaps of over-inflated currency at the repo market. Stock market ended the year on an artificial high note for Q4, yet we haven't even fully recovered from 08'. If you haven't got at least a year's wages in bullion you're risking more than you think. Only safer investment is 5.56.
Oh man, lets invest all into gold...
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Your goverment wants to know your location
So it's like bitcoins?
So the gold is in a big vault and we just trade paper; if someone stole all the gold, but no one knew about it, would it matter?
Well the person who stole it saw some value in it and probably wants to exchange it for money which is decided by those papers that we trade. In a way it would matter.
Yes, because we have the right to exchange those papers for the gold it represents. It would defeat the purpose of having the gold standard if we weren’t able to trade our notes for the physical gold.
@@LosCristeros317 There's no gold standard. There hasn't been in about a century or so.
Not an investment a savings or storage of wealth
I just bought 20 1oz American Gold Eagles.. I predict it will be over $3000 an oz and protects me from inflation.
I accidentally bought 20 Golden Eagles. They're getting hungry and agitated. What should I do?
@iAmTheSquidThing you'll be glad now. 😊
Don't mess with gold unless you're getting your hands on the metal yourself.
On a similar note. People seem interested in it due to mistrust in the system; thus its odd to then trust those who hold it for you.
Gold has a single feature most Northern Americans don’t think about. If a war breaks out and everything goes to hell fleeing is much safer with a handful of kangaroos in your pocket. You can sell them in every place in the world.
People think the dollar is junk, so they hope to sell gold in the future for dollars? Lol. 👌
Yes and no. Also betting that as it has continued to be available throughout the civilisations, different currencies, different systems that it will continue to do so regardless. It’s not a sure thing but there is no other asset on earth apart from food and water that has such a long history of value
Why did Nixon end the gold standard though?
It was preventing accelerated growth.
In India, Gold = money = status.
What also helps in keeping the value of gold high in India is having bogus demonetisation policies made by wannabee economists.
In any case, income doesn't matter: storing heaps of gold at home makes you ULTIMATE prosperity/marriage material. :)
I think gold is like Earth poop.
🧡💛💚💙 Metal Gear Solid "!" noise 🧡💛💚💙
"Central bank (fiat) currency 'tends' to lose value over time"...
yes... over 500 fiat currencies have failed in history, the current iteration of the USD has lost over 95% of its purchasing power to inflation... go on...
gee it's almost as if someone predicted all of this and described in excruciating detail how capitalism would collapse.
Karl Marx, btw. predicted fiat currency, negative rates, massive debts, etc.
@@cageybee7221 he also spent all his time mooching off his rich friend while refusing to get a job because Karl Marx was a fucking bitch
@@cageybee7221 no.
Unlawful_Falafel did he actually??
@@cageybee7221 there is nothing capitalist about central banking and bailouts. This is nowhere near a free market.
not gonna lie, that ending joke killed my vibe :())))
Wth is going on then?
The key takeaway: It's a terrible investment, it's not as uncorrelated to the market as proponents preach and as a store of value it's very questionable.
Gold only seems volatile because your chart prices it in volatile dollars. If you compare it to other commodities. It is unprecedentedly stable
Gold is such a boomer investment that not even Buffet likes it
Gold stores wealth. In ancient times it could buy you a fine horse. Today it can buy you alot more stuff due to inflation of goods. Gold is $1744 today. That can buy you a used car or 1744 of dollar tree goods. The gold price didnt rise there was just an inflation of goods. The gold is the numerator and goods the denominator.
Gold is speculative? I don't think so. Think about it, gold has been used as money and a store of value for thousands of years. Its place in history extends far beyond coins, bars and jewelry. Whether you believe in it or not, gold has somehow outlasted alternative currency for thousands of years. One of the biggest misconceptions about gold is that it's a speculative element.
The point of gold isn’t what it can produce; instead, its value comes from the fact that it’s a source of protection in times of crisis. Gold price can go up or it can go down, but gold itself is permanent. It’s an excellent hedge in terms of rising inflation. Plus, if you focus solely on the price you lose a lot to information value. There’s a very distinct difference between the gold price and the price of gold. The price of gold refers to the cost of putting a coin or a bar in your hand. It represents the cost of the physical metal itself. Meanwhile the gold price has become nothing more than a reference point.
People focus on the price of gold…but those are the people that focus on the price of everything; and you know, people know the price of everything and the value of nothing.
I read a story of europeans fleeing ww2 and the ship captains would only let them on if the refugees had gold to bribe them with. This is why having gold might be a good thing. it might get you out of a pinch someday. plus you can give it to your kids or whatever so the effect continues.
I feel like if you are buying gold, you're missing out on a lot of opportunities 💰
This sounds a lot like bitcoin. Nobody knows why gold is safe, and apparently independent of market forces.
MrBigEnchilada the point was the price of gold is mostly speculative in price and not based off the same analysis methods used to evaluate stocks and bonds. Whether you think gold or bitcoin is better they both offer similar investing points
I believe you're confusing "safety" with intrinsic value. Gold is valuable because it is a rare earth metal that isn't easily reproduced. You can confidently buy physical gold knowing that it will retain some value that can be used for human exchange. Whereas paper assets (which technically aren't even paper anymore because it's all digitized on a computer) doesn't have any redeeming qualities beyond what a corporation or government is willing to give you for it. Gold was here on Earth long before humanity arrived, and it'll still be here after we're long gone.
Charles Rebbel a lot of things were here on earth before humans. Gold has conductivity qualities and it’s shiny, but it’s use just like diamonds does not justify its value. For instance what can you do with gold if the market wasn’t there to sell it? You can’t eat it. You probably won’t have a smelting machine so you can’t melt it. It takes on an inflated value because humans have arbitrarily said so. Would you rather have 1 million dollars of gold, or land, or even oil?
@@NotShowingOff Get rid of the 7 billion humans, then your point has some validity. Until then, land, gold, and oil are all relatively the same in terms of value. (depends on the land)
Noah Whipkey that’s exactly my point. Because of humans arbitrarily deciding a market of goods, bitcoin has value as well, similar to gold.
Can you explain impact on currency market & US $ as FED is printing massive amount of $$ to fight against COVID-19 impact?
Arent printing anything
It's all in the mind. 😑😑😑🤘 if they don't run to gold in the times of crisis, it's prices won't rise
Two years ago you would be correct. Now you are just dead wrong lol. Gold serve as a good baseline security so one wouldn’t get hurt as bad in the current and coming crisis.
Not just inflation. Gold does not oxidise, it is a reliable store of wealth, and it can be used for more than just currency if things go south. Instability, war and displacement mean a human equipped with some gold will have an advantage, all things being equal, over those humans who demand it. Gold also plays a role when it comes to relationships and marriage etc. if things go really wrong Gold is the back-up plan.
Everything you said is full of "sales pitchy" stuff and inaccurate. It is not a "store of value" since it's speculative and volatile. The other stuff you mentioned is hard to even follow. Marriage? "Things going really wrong"?
@@Omar-et7sb Nah, I never said to buy gold so my rant isn't sales pitchy rather part chemistry, part scarcity (economics) and a bit of self-preservation. Indeed, part of the marriage proposal involving a gold ring is a kind of insurance. You need to read up on sociology in order to understand marriage arrangements then.
@@Omar-et7sb Also, maybe you can suggest some alternative stores of value? Property isn't bad but it's hard to relocate land if war breaks out. Gold can be taken anywhere in the world, so when you pick up where again you'll have an advantage over those who don't have gold opting for bread (perishables) or crypto (virtual). Just open any intro to economics text to understand that gold and other precious metals are defined as stores of value.
@@eben3357 Being condescending ("open any textbook on economics or sociology" blah blah) doesn't make any of your rhetoric accurate, mate. Gold is a terrible investment which is a fact. It's a terrible store of value (only thing worse is probably crypto), and you again go into some weird apocalyptic scenarios in which owning guns would probably be better than gold anyways (again, based in your examples).
@@Omar-et7sb If you think gold is a bad investment then take that matter up with the author of this video rather than straw-manning, it's getting a bit conceited; for the second time I have not advised people to just go out and buy gold bullion if that is what you think. Pardon the pun, but strong-arming with guns is really going down a rabbit hole, unless you are talking about arms dealing, which is usually illegal...