Is it true that gold investment is not profitable?

Suba

Verified member
Since ancient times gold is often used as an investment instrument by many people, we know there are 2 forms of gold, namely gold jewelry and gold bullion. Gold content of jewelry often shrinks during the manufacturing process. So it would be better to invest in gold bullion. but now many experts observe that gold investment is not profitable, why? The increase in gold prices is only due to inflation, so gold will be better used as savings (not investments) and sold when we need money. The value of gold tends to be fixed, the increase in gold prices will move in a straight line with the increase in inflation in a country, although gold can be used as a long-term investment but because the value of fiat money decreases, the profit is almost zero.
 

Mika

VIP Contributor
Gold is the most secured form of investment. Gold might not make you very rich, but it will give you good returns. That's for sure. However, in order to invest and profit from gold, you should not buy gold jewelry, instead, you need to buy gold biscuits or gold bars. Making jewelry from gold for investment purposes will actually damage gold and its value will be lower. Gold is one of the best investments because you can liquidate gold and convert it into cash anytime you want. If you have the purchase bills selling gold is very easy. I have done that
 

Jasmine

VIP Contributor
Well, actually gold investment is profitable. You may not be able to double your investment in 1 or 2 years, but you will surely earn at lest 10 percent profits from your gold investment every year. When you want money immediately, you can either get a gold loan or sell it to recover your money with profits.
 

Mellorando

Banned
Research has it that the return rates of physical gold are never profitable if you invest in the gold jewellery. The reason being that the price of jewellery is not only determined by the gold rates but it also includes the making charges and this is the just the half story i.e. when you purchase the gold. Gold has been a highly preferable investment tool because of the liquidity it offers. In comparison to other forms of investment like stocks and bonds, gold has proven to be an asset that is easy to liquidate and thus, in times of an emergency, it can easily act as an investment cushion.
A major disadvantage to investing in gold is that there are no periodic cash flows made to the investor. Unlike most stocks and bonds, there are no regular cash dividends or coupon payments made to gold investors." Also, cash isn't used exclusively for dividends.

Reasons to invest in gold:

1. Because it is a real asset with limited supply, gold is an effective inflation hedge.
2. Gold typically performs well during recessions, bear markets, and when stock market volatility is high.
3. Gold has a low correlation with most asset classes. This is a useful characteristic when building a diversified investment portfolio. A gold investment can be an effective way to hedge portfolio risk and volatility.

Reasons not to invest in gold:

1. Unlike cash, stocks and bonds, gold does not pay any sort of yield. In fact, storing and insuring gold can result in a negative yield.
2. What is gold worth? Because there is no yield, it’s impossible to calculate the intrinsic value of gold. The gold price is driven entirely by supply and demand, which means its price has a speculative nature to it.
3. Liquidity can be a problem with a gold investment. If you own physical gold, you need to store and transport it. If you own gold indirectly, you may be exposed to the same liquidity problem as other financial assets in the case of a collapse of the financial system.
 

Good-Guy

VIP Contributor
I do not think that Gold is not profitable, but I believe that investment in Gold is not something that would make you super rich overnight until or unless you invest millions of dollars and trade wisely. You should remember that gold is volatile in nature. However, silver is far much more volatile than gold, so the chances are that you will not gain that much profit or suffer from losses either. Some people consider gold a much better investment than cryptocurrencies. This is due to the fact that gold has a very long history while cryptocurrencies are newer assets. Since the supply of gold is quite limited, I think that the prices of gold could go much higher in the end, but it also depends on the conditions of the gold market.

So, you may invest in gold, but you must also consider other kinds of financial investments as well that could be profitable. There was a time when even I considered buying gold, but right now I am giving cryptocurrencies a chance as cryptocurrencies are easily purchasable asset for me as compared to gold. You may buy gold offline and monitor the prices of gold and sell it at the right time. You must be aware of the local and international market of gold rates.
 

Caramelle

Verified member
I believe that gold should at least be one of the investments in a diversified portfolio. Gold has an inherent value and is much revered through the centuries as a precious metal. Its value is more or less stable and is gradually increasing as time passes. Some people prefer investing in gold to stocks and cryptocurrencies because gold is something visible and indestructible while stocks and cryptos are volatile and speculative. I think one should have an investment portfolio with a healthy mix of financial instruments and precious metals along with real estate.

Investment in gold is not limited to gold bullions or jewelry pieces. One can invest in gold by buying gold stocks issued by mining companies. While gold stocks values usually fluctuate in the same direction as gold prices, some mining companies may still perform well despite the slump in gold prices.

While gold bullions are more valuable as an investment, more people buy gold jewelry pieces as investments and accessories at the same time. Jewelry items are portable and are easier to acquire. They are the most common form of gold investment accessible to ordinary people. Their prices do not necessarily reflect their true value because they need to go through a conversion or manufacturing process.

 

Alexandoy

VIP Contributor
Would you believe that fans of crypto are the ones who are saying that gold is not profitable? The idea is for the public to turn their eyes to crypto investment. But whatever they say about gold as long as the investment is not a scam and what you buy is real gold then that is a very safe investment. To be frank, I am considering to buy gold for my investment but I am at present focused on stocks. When I successfully buy the number of stocks that I want then I can check on the other investments. I also have a fancy on real estate. Anyway, when it comes to gold nothing can beat the stability of its value. Of course, the market value may go down but it will surely go up again because gold is the standard measure when it comes to valuation.
 

eldavis

Valued Contributor
Gold investment is one of the few investment that has been able to stand the test of time, even with the introduction of Bitcoin and crypto currency in general, people thought this would completely remove gold from the market, some even went ahead and started calling Bitcoin the new gold but in the end gold still remained. It is one of the most secure form of investment, though Bitcoin is the most talked about right now but some persons still prefer trading and investing in gold. One major advantage gold has over bitcoin is the fact if has a physical form while Bitcoin does not.
 
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