Is Gold a Good Investment? 

Thank you iheartscientology. I do my utmost to keep them simple and jargon-free. My goal is to help people rather than make out that I'm clever.

Hi Benjamin, thanks for your comment. That's a good point about gold miners whose prices are highly correlated with the price of gold but which also offer a small dividend. But this video was about gold and miners are at best a gold proxy. If equity markets sell off so will the miners and the gold correlation won't hold up. Gold is simply too volatile to have the role of capital protection in a portfolio. Insurance shouldn't introduce more crash risk into a portfolio and this is precisely what gold does. Thanks, Ramin.

Hi Ramin. I think we might be approaching the idea of capital protection from different angles. I'm certainly not saying that gold is a ballast for a portfolio in the same way that bonds are. It offers no stability, its price jumps around like an excitable cockapoo on speed! What I mean is that it will likely be in a bubble when nothing else is. And it balloons up big time, often doubling or more in value all be it temporarily (look what it did between the dot com crash and 2011). It gives one something to sell to free up a fairly significant amount of capital to buy other yielding assets that are cheap in the couple of years after a bust. Bonds on the other hand should hold up well and solid gov bonds might go up 4 or 5 percentage points like in 08 but that's only going to give one a couple of percentages points worth of their original pot to liquidate and buy cheap equities. I suppose it depends on ones attitude to volatility. If someone can put 10% in gold in a vault somewhere and ignore it until they need to rebalance; and if they then have the nerve to take a deep breath and a stiff drink and top it back up to 10% after it's been tanking in the good years then it will thank them in the long run I believe! Take the Dalio all weather portfolio (with 7.5% gold and 7.5% other commodities) or even the cockroach portfolio (with 25% gold, too much for me to stomach!); they do stack up well over time when back tested.

Hi Benjamin, there's a good book by Meb Faber amzn.to/2L3SzDC which back-tests about a dozen asset allocation strategies, some of which include gold. Gold was amazing after the US came off the gold standard in the 1970s but performed atrociously for the next three decades from 1982 to 2013. Harry Browne's Permanent Portfolio is nice because it's really simple. It has a 25% gold allocation. It was very consistent across different market environments but was the worst performer on average of all the strategies. A lot of asset allocation strategies recommend gold but I don't think the arguments stack up empirically, particularly if they depend on timing entry and exit points for bubble hopping. I do love the mental image of a cockapoo on speed, but I dread to think what my cockapoo Teddy would be like with even a mild stimulant. Thanks, Ramin.

Thanks for the book recommendation Ramin, That's downloaded. At £1.99 that's a steel! Always interested to read something that'll challenge my current viewpoint! Love your vids by the way, defiantly helped me get my finances in better order (was previously a bit overly long on the scooby and shaggy assets!)

LOL we all need _some_ Scooby Doo in our portfolios. One of the most interesting parts of the book was in the foreword where Faber likens fees to the gorilla in the room. The difference between the best performing asset allocation strategy and the worst could easily be gobbled up by fairly typical adviser fees. So asset allocation matters, but as long as you're diversified keeping fees low matters more.

Hi David, that's great to hear, thank you, Ramin.

Hi Genus Musa, thanks for your comment. In a severe crisis, gold does hold its value as you say. However gold introduces crash risk into a portfolio which means it's a poor candidate for wealth protection. In an environment of rising real interest rates, as we are seeing currently, it usually performs poorly. Given the choice between a risk-free asset such as US short-duration Treasuries which generates reliable income gold becomes less attractive as an asset that generates no income. Venezuelans would have been better off buying US Treasuries. Thanks, Ramin.

@@Pensioncraft , yes , but when I walk into a jewellery shop - pawn shop place in San Juan Puerto Rico, /what I really did/, having 10 g of gold with me from Argor-Heraus , he was ready to pay me cash rigth away . I don't know if he would buy US Treasuries -maybe not. Any paper promise, incl paper money is only valid until - US Tresuries is valid until there is U.S. Have not been 500 year ago and we don't know abot the future. Same with the EUR. So I call them " If" investments. If...., than... I was raised in Hungary, so I know that it had hyper inflation of the "Pengő" after the second world war, had to introduce a completely new money, based on a new hope, the Forint. Gold is a real thing. It will be accepted and bought anywhere- also in form of jewelry. I can sell or get loan on gold jewelry or coins or bullions anywhere in the world right away with no questions asked. And that is why I keep gold, not form the investment point of view. Anyway i appreciate your video, it show gold from another point of view.

SXH Capital it's good explanation. I put 20% of my income to gold at HelloGold.

"Gold is wealth protection" I know, right? Because when society collapses and you have to hide in your prepper-bunker with your AR-15 collection, then it will TOTALLY be great to have all that gold. Haha, take that silly people who think that "the establishment" will let you keep your stocks!!! Or something along those lines, did I get it right?

People in Venezuela could use ANY investment outside of Venezuela. Dollar ? Same, Bitcoin ? Same, Euros ? Same. Real estate outside Venezuela same. It´s not the Gold it´s the fact that anything outside Venzuela has Value.

Thanks Ryan.

Thanks for your support Ian Davies. Ramin

Hi MisterKorihor, thanks for your comment. Hyperinflation hasn't happened in developed markets for almost a century, and is even less likely now that we are in an era of inflation targetting by central banks. But you're right, during periods of hyperinflation the value of gold held up. As a crash hedge gold is a poor choice because (i) it crashes itself and therefore _adds_ tail risk to a portfolio (unlike US Treasuries) and (ii) it is sometimes positively correlated with equities, adding to the risk of a portfolio. Thanks, Ramin.

@@Pensioncraft I agree that the central banks are unlikely to go along with a program of significant inflation. But consider the following scenario: The U.S. government gets into substantial debt (mostly because of Social Security/Medicare/Medicaid) and by 2035 it can no longer pay the interest on its debt. Congress applies pressure to the Feds to monetize the debt but the Feds resist and stick to their inflation target. In desperation Congress repeals the 1913 Federal Reserve Act and gains control over the money creation process. From there they inflate their way out of debt. In the process, however, all dollar-denominated debt instruments tank and savers lose most of their money. Gold bugs escape the carnage, and even make a profit.

That's a pretty scary scenario MisterKorihor but given Trump's record the loss of central bank independence is a tail risk that's looking more likely than under previous presidents. However, the US dollar isn't the only currency. It would devalue under this type of extreme scenario making non-US investments much more attractive for US investors. That's assuming there weren't capital controls put in place, of course. Thanks, Ramin

If that happens gold won't have value either.

You can also own Land, Copper or any other investment outside the Dollar space if the dollar crashes. It´s not the Gold.

Hi Pedro, I'm glad you find it useful and many thanks for telling your friends about my channel. Thanks, Ramin.

Pedro Yañez good luck trying to collect rent when your tenants can't pay during the recession. The choice is yours

@@gu3sswh075 On the contrary, rent is more in demand during a recession. No shortage of tenants

Robert Halili of course there's more demand, but there are also more debt in every household because (1) wages decrease and (2) expenses increase. The main reason to purchase real estate ina a recession is to sell after the recession. Not necessarily to collect rent during the collapse. That's a dumb stategy. You should be positioned so it doesn't matter if you do/don't make money for a few years. That way you make money upon selling (if you NEED to)

@@gu3sswh075 Amateur hour is on I guess. You got your five minutes

If you're going down the DIY route Benjamin consider my Asset Allocation course. You get five hours of one-to-one with me and it covers all the big topics (setting up a portfolio, how to measure and reduce risk, how macroeconomic trends affect asset classes and how to monitor them, cognitive biases that hurt returns and asset allocation strategies) pensioncraft.com/register/diy-asset-allocation-course/

Hi kindke, I know what you mean about it being a nice thing to own. That can't be said of share or bonds where you don't even get a pretty certificate any longer now trading is electronic. I guess central banks are the lender of last resort so gold makes sense for them as a store of value. Thanks, Ramin.

Yes everyone should put 5% and above into gold. I am very happy with KB right now im stacking there. Stack.gold

Hi jibberjabber4500 I wish I knew for certain when the equity market had peaked as this must be a very helpful skill when timing your trades... Unfortunately, gold is susceptible to its own uncertainties which cause it to crash in value which renders it an unreliable hedge for equity. US Treasuries are far more reliable as an equity hedge. Thanks, Ramin.

@@Pensioncraft im not sure if debt is a good hedge. with 22 trillion dollar in debt.. us govt is in no shape or form a safe borrower

So are tulips

It will hold -> Some

Hi Pa M I remember the worries about inflation the last time we got QE. Hedge funds were buying gold and inflation protection and so so were retail investors. But in the event there wasn't much inflation at all and most developed market central banks are struggling to get inflation up to their targets even today. Gold is more attractive now that central banks are back in easing mode and real rates are so low. But the primary reason to buy government bonds is to reduce the risk of your portfolio and even with negative rates the drawdown on government bonds is still much lower than that of equity i.e. bonds are still fulfilling that safety role. If you are worried about inflation then a much better inflation hedge than gold is inflation linked bonds. Gold is a lousy inflation hedge. Thanks, Ramin.

@@Pensioncraft Hi Ramin, thanks for the reply. I did not mention inflation. Appreciate what you are saying but the quantum (size), scope (amount of countries), and coordination of the flood of money initially kept the markets up, but only by making markets dysfunctional. I do think inflation is there, ask anyone paying bills and look at the anaemic wage growth. I think it is simply stifled from expression by the wall of money flooded onto the markets. The repeated waves of QE have done little to repair the economy, simply stifled price discovery, propped up zombie companies, and massively mis-allocated capital. The amount of printing that has gone on has ensured that interest rates can never be raised: the sheer size of the debt means it could never be repaid. The bonds you refer to are presumably Treasury (as municipal and corporate are quite prone to failure), but a slight crisis will see people start to move out these as the only way to cope is lowering interest rates further (negatively) to try and stimulate and this will result in a flight of capital from the banking system. Appreciate there are IMF papers outlining banning cash to keep funds in the banking system but compression of margins due to negative rates would ultimately hurt the margin of the banks and cause an exodus to alternative stores of wealth (crypto or gold). Government bonds have already failed at the margins (LatAm), are failing at others (ME), and even US bonds may no longer hold up, especially if US$ primacy fails as Governor of Bank of England is already highlighting. My thinking is which would you rather hold - an asset (bond) that is guaranteed a loss (negative yield) or one (gold/crypto) that is not only not guaranteed a loss but exposed to a to rise in price?

"The fact that people have invested in Gold for over 5,000 years tells you something." Unfortunately that doesn't say a lot. The world now is completely different than it used to be and stock markets are a fairly new phenomenon. Gold also used to be currency while it no longer is. For the longest time land has been the major form of wealth and investment yet that is no longer true either. Gold can be outlawed so how can it be a safe heaven in times of economic collapse? The only value I see is that it's relatively doable to flee the country with one's wealth in gold but then again diamonds are probably a better bet in terms of value/weight.

Excellent comment. I’m doing the same.

Hi Ahmed, thanks for sharing your fascinating story, it’s great that your parents had such kindness and foresight. If your parents had bought shares in US stocks that investment would have grown almost six fold i.e. by almost 600% assuming a 6% growth rate for 30 years. You may then have been able to live off the dividend income on your shares rather than having to sell your gold investment. Also there are restrictions on exporting gold from some countries so this might not be a practical way for some people to transfer their wealth. Thanks, Ramin.

Hi @Trunks9000 screenshots are probably best - I don't provide the charts to members at the moment. Thanks, Ramin.

@@Pensioncraft Thanks for answering, Ramin. Are you thinking about making the charts public? Do you make them yourself? I find them very clear. Thinking about becoming a member anyways, but wouldn't think an instant about it when the charts are also part of the service :)

Hi Ryan, I think your view about Brexit is key to how UK investors divide their investments between domestic currency and foreign currency assets. If you think we'll get a soft Brexit or no Brexit sterling will probably appreciate very strongly versus the dollar and euro. That would reduce the value of investments in those currencies for a sterling investor. If on the other hand, you think we're heading for a hard Brexit the opposite is true, but will probably be less extreme because a hard Brexit is largely priced into sterling (certainly more so than a soft Brexit). Looking at valuations however UK assets are far cheaper e.g. by comparing price to book ratios or price to earnings ratios. Also, UK equities generate a much higher dividend, almost twice that of the S&P 500. For more detail take a look at how I invested my ISA this year Ryan: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ABpDgwMIJg0.html Thanks, Ramin.

PensionCraft Ramin, thanks for taking the time to reply. I'll keep this in mind when deciding my strategy. Again, keep up the videos. In a sector shrouded in misinformation and confusion you are helping many (including myself) make educated investing decisions.

Thanks Ryan, that’s my goal, to help people make better informed investment decisions.

Hi Jarrod that is really interesting! I guess other factors may be at play here, primarily fear given the recent sharp selloffs in the equity market. People often head for gold during risk-off episodes. Like vol spikes these periods of popularity will be short-lived. Ultimately real interest rates (e.g. ten year Treasury rate minus inflation), like gravity, always win. It's very difficult to make a case for risky and volatile gold if (almost) risk-free US Treasuries are giving a real return of one percent or more. The "survivalist" group who are preparing for the apocalypse might still buy gold in these circumstances but for institutional investors gold is not going to be a popular choice as part of their portfolios as real rates rise. Thanks, Ramin.

You're trying to time the market. Time in the market beats timing the market. But don't take my word for it :)

Alessandro Lo-Presti thanks for the advice.....I’m in the market now!!

Bad start. He had a big disclosure at the start of the video that he doesn't give advice. I suggest you start with something else to solicit information.

Hi Yadin real rates fell and gold prices rose since I made the video as the Fed reversed its policy. The purpose of this channel is financial education not forecasts i.e. I show people what drives prices and let them make their own mind up. Thanks, Ramin.

Hi Money Unshackled, I suppose in a crisis it can hold its value or rally, as it did in 2008/9, particularly in Sterling because the pound devalued versus the US dollar and that boosted all foreign denominated asset values. One way to get around the lack of income is to buy gold miners which pay a dividend but that isn't a "pure" gold position. But as you can see in the video I'm not a fan of gold either for many reasons but rising US rates is the clincher. Thanks, Ramin.

How's that going to work when the dollar crashes??

​@@PensioncraftAfter the success and rally gold is having at the moment do you stick to your comment about gold?

After the success and rally gold is having at the moment do you stick to your comment about gold?

Dronamic Ltd Look at gold in longer terms. Would you be surprised to know gold is worth less now than it was in 1980? This rally is still seeing gold about $1300 less in value when adjusted for inflation.

Hi As iT reaLLy iS at least palladium has industrial uses which provides some price support. However, like gold it generates no income and so is impossible to price. I don't invest in commodities because they don't have steadily growing earnings as stock markets tend to have, so there's no fundamental reason why their price should drift upwards over the long term as stocks do. I take it that you invest in commodities? Thanks, Ramin.

@@Pensioncraft Thanks for your informed response Ramin, I did have a flutter with some palladium & gold last year, but do not intend to again anytime soon. I am sticking to my ISA for the immediate future (Stocks & Shares and Innovate finance)

Hi Joe, I hope that day never comes. The chance of the US government defaulting is very, very low. But I guess if that kind of apocalyptic scenario is a concern then gold would be one asset (other than canned soup) that would be helpful. Thanks, Ramin.

It's not low, what options are there than to default or print their way out? But all that aside, investment is more than math, it is also emotions, the key is not to panic in a panic, so for me I will diversify so that I would have more faith in my portfolio that no matter which directions things go, I should not have massive losses...

I guess it depends on how likely you think these tail risks are, and my belief is that the probability of a US default is extremely low. A classic debt trap happens when GDP growth is less than the cost of debt, which is far from being the case at the moment for the US. That means it can grow its way out of its debt i.e. show some fiscal restraint and/or raise taxes and let debt to GDP levels fall as happened in the late 1990s under Clinton. Gold has the unfortunate property of crashing itself which is unlikely to make me sleep easier at night, whereas government bonds are much less volatile and less likely to crash. They also provide some income, which is why I prefer them as a hedge. Thanks, Ramin.

👍🏽👍🏻👍🏿

Hi Jake, this is a bit of a niche fund. What do you think about these comments on the Citywire website that were made after the fund entered the Hargreaves Lansdown 150+ list? moneyforums.citywire.co.uk/yaf_postst4269_Jupiter-India-goes-into-HL150.aspx Macroeconomic trends aren't very favourable for gold at the moment, as I say in the video. Thanks, Ramin.

Thanks Ramin I really think your videos are helpful!! I don't think those comments make it look like a great fund -9% last year too!

Yes I agree, the comments are quite negative aren't they? Plus the ongoing charge is 0.69%. I wouldn't pay more than 0.25% management fee for a fund unless it did something amazing.

Hi Mohammed, I agree that at some point we're going to get a US recession but it's a while until we get there, as the US economy is still looking strong. As the FOMC said in their September summary www.federalreserve.gov/monetarypolicy/fomcminutes20180926.htm "the labor market continued to strengthen and that economic activity rose at a strong rate. Job gains were strong, on average, in recent months, and the unemployment rate stayed low. Recent data suggested that household spending and business fixed investment grew strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy remained near 2 percent. Indicators of longer-term inflation expectations were little changed on balance." However, when the next recession comes I don't think it's going to be anything like 1929. Banks are much better capitalised and the Fed's experience with 2008/9 will help limit the downside for the economy. But with Ten Year Treasury yields around 3%, which is well above inflation, gold doesn't look very attractive. After 30 years of falling yield we're now entering a regime of rising rates and that's toxic for gold. I think it's extremely unlikely that the price of gold will increase by a factor of four or five over the next few years. Thanks, Ramin.

Hi gerry2828 kelly, thank you for your comment. My primary concern with gold is that it crashes and is itself very volatile. But to your point about sleeping easier, I remember seeing people queuing outside banks in Geneva for physical gold during the sovereign debt crisis in Europe. When there are worries about fiat currencies losing their value, as happened in the Weimar Republic, gold holds its buying power. There are terrible stories from that time of people losing all their life savings and starving "when money died" (which is the title of the book by Adam Fergusson ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_d26rK8YYyA.html). But I have a hard time justifying owning gold in current conditions with rising interest rates and a strengthening US dollar. But as you say Gerry holding gold is a personal thing that some people find reassuring. Clearly, I'm not one of those people! Thanks, Ramin.

Hi Ramin, thank you for your comment. It is unusual for me to disagree with any of your video content as they are very well presented and informative. I 100% respect your argument even to the point that you could very well be right. I'm going with the sleeping easier option, which is more based on intuition and not market savey. Otherwise I'm am a fan of your video's, thank you. Gerry

So what's going to happen to your stocks, bonds and cash when the dollar collpases - as allnfiat currencies do? What are you going to use to buy food/water and barter with or pay utilities? Your property??

Oh yeah, Pardaillan81 I'm with you there. These look golden... ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-rxNxykObO60.html

Hi CONTENDER791 when I look at the numbers (I only have 17 years of data for Berkshire Hathaway) I see: - April 12, 2019: Gold spot price $1290.72, Berkshire A $315,507 - December 30, 2002: Gold spot price $343.50, Berkshire A $72600 Annualising those returns I get 8.1% for gold and 9.0% for Berkshire A shares. Gold got a massive boost during the period of zero interest rates, that is likely to turn around now that real interest rates are increasing. Thanks, Ramin.

PensionCraft yes Bit I said last 20 years. Gold was 275 in 2001

@@CONTENDER791 Gold was $850 in 1980. Adjust for inflation, gold would need to be around $2900 today. Compare gold's return to a dividend stock like KO or MO. Start thinking independently.

William Wilson I said the last 20 years. Learn to read

PensionCraft golds 1500 now , which makes my statement accurate

Hi ToughGuy, thanks for your comment. Does the possibility that gold could crash as US rates rise worry you? I agree that we are seeing very high US valuations at the moment, largely because of QE and super-low rates for so long. But do you think a student debt crisis will lead to hyperinflation? Thanks, Ramin.

No, a $22T + national debt and loss of confidence crises.

Silver is even worse. Research it for yourself.

40p a gram?

phanindra tenneti Bad move. Didn’t you pay attention to the video? I was 20 in January 80...newly married and looking to the future. Gold was hot at the time...much hotter than today. So where would I be now that it’s 2019? Inflation adjusted. Gold: -30%, -.9% annualized S&P: 678%, 5.3% annualized. Dividends not reinvested. S&P: 2072%, 8.09% annualized. Dividends reinvested. As a retired, 60 year old...I suggest you reconsider your plan.

​@@williamwilson6499 Hello William, You had the right portfolio as you started in 1980. Things are changing drastically. You never know when Gold would rally like it rallied from $35 an ounce to $850 in 1971. And I see your point. I have invested in Equities too :). Gold is for hedging

Hi Peter, my father loved physical gold too. He timed his gold entry and exit trades perfectly during the big rally from the mid-1970s to 1980. He also thought that sterling would go to parity with the dollar in 1985, which it _almost_ did, but in my eyes, he was still perfect. Thanks, Ramin.

@@Pensioncraft in reality your health is your wealth.my dad was perfect too.

Get more, and silver, too. You can't go to the grocery store and buy bread with gold - UNLESS you're buying one helluva LOT of it. 😆😆😆

Having physical gold at home is an obvious risk. Any risk means potential losses in this case getting stolen or any physical problem happening to gold. These risks taken into account affect expected value. If there is 1% chance to get stolen a 100 usd gold bar before next year then on average that gold bar will be worth 99 usd. The reason he is talking about a cost of storage is because people don't usually take these risks and instead buy ETFs that store gold for you. That results in costs that are much higher than low cost index funds for example.

@@plauo9913 but how would anyone know if you had the gold in the first place if you didn't tell anyone ? Also mine is buried in my garden so good luck to a burgular finding my bullion in my garden without him even knowing I have it in the first place.

@@mgtowchampion7961 Like I said there is always a risk greater than 0% that someone steals your gold OR a physical problem happening to it.

@@plauo9913 well the only problem i will have with my bullion is some mud from my garden that will be stuck to it, I have never heard of someone's garden burning down.

@@mgtowchampion7961 so you must be really wondering why there are billions of dollars invested in ETC to hold gold for people. These people must be insane because there is 0 risk in having the gold.

Hi Yadin you're right and nobody knows what the future cash flows for a stock will be exactly. But you can make a guess and get an idea of what the fundamental value would be and therefore whether stocks are cheap or expensive relative to your assumptions. But gold doesn't have a fair value at all so its price doesn't have this fundamental "anchor". Thanks, Ramin.

Hi Metal Bum I'm not a fan of gold as insurance but I love your logo with the pickaxe. Thanks, Ramin.

Hi Muhammad M have you seen my gold 2020 video? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-9qCmkr60JNM.html Real rates are now low, there's plenty of fear around, and the dollar is weakening which makes gold a much more attractive proposition. Thanks, Ramin.

PensionCraft the fact that you never say anything about the relationship of gold and money supply, shows your lack of understanding of the concept of money. You should start reading Ray Dalio.

Hi Amjad, those are all good points and I agree with almost all of them and, of course, I agree with your conclusion as I say in the video. I think gold has been popularised by things like the Perpetual Portfolio and the Ray Dalio's All Weather Portfolio. Personally, I don't think gold has a place in most portfolios. Thanks, Ramin.

@@Pensioncraft Thanks Ramin!

1. gold ALWAYS appeciates in purchasing power against fiat currencies which DEPRECIATE with inflation. 2. gold will always be able to be sold for paper or crypto money, now or in the future. 3. Gold and silver increase in bear markets or when the stock market crashes.

Amjad, I think you have a very poor understanding of monetary systems and currency. Fundamentally, as many have pointed out, gold shouldn't be viewed as an investment. It is a form of MONEY within a portfolio which is resistant to fiat vulnerabilities in times of severe monetary system stress, like which we are entering now and that will have incredibly damaging effects on wealth. I don't think the seriousness of the current situation is fully appreciated by many. Who in their right mind 20 years ago could have imagined a world of negative interest rates and 20+trillion in exponentially rising sovereign debt, not to mention the phenomenally excessive leveraged corporate debt levels.....and then to imagine heading into a global recession based on that starting point, with demographics and automation all working against growth rates the world once enjoyed and unlikely to be seen again. There is no growing out of the current predicament. So, Gold - yes please. Silver - I'll have more of that please at a 93:1 AgAu ratio. Finally, to the detail. I strongly disagree with you points for the following reasons. Gold is a terrible investment idea for the following reasons: 1) Buying gold bullion is risky as it may be tainted or contain impurities (a lot of people have been scammed while buying gold, and you do not want to become a statistic); AO: It doesn't have to be risky, so this is no reason to not buy it! - Use a reputable service like Bullionvault dot com. 2) Hoarding gold at home is fraught with unintended consequences while gold vaults also carry risk as they may be operated by scrupulous companies or individuals; AO: Home ownership is not a sensible approach given the ease and cheapness of owning allocated bullion with good liquidity in SECURE and reputable vaults, e.g. Bullionvault 3) Gold pays no interest or dividends; AO:Not necessarily true and certainly not in current circumstances. Given that interest rates are going negative in an every expanding circle of countries and taking into account 'real' inflation (not gov massaged), zero gold dividend is actually net +ve 4) Gold does not appreciate in value as much as other assets; AO: Gold is real money (not currency being inflated away), otherwise why are the central banks currently massively increasing their holdings? Compare the value of gold to the dollar over the past 100 years and you'll see that the dollar has lost over 90% of its value by comparison. 5) Gold may signficantly depreciate in value over time with respect to FIAT currency; AO:Totally incorrect. No currency system has survived more than about 40 years on average and see point (4). Also, don't be US$ myopic - gold is at all time highs in most other currencies. 6) Only reason people buy gold as an investment (or currency) is out of fear or insecurity, which is often exaggerated and used as a scare-mongering tactic to lure fools and make them pay fees, which is how financial agents make a living; AO: Gold is not a currency, which is one of its major strengths. Currencies are failing as global debt is rising exponentially. US$ only survives because of its reserve currency status and the petrodollar legacy. It is living on borrowed time as more nations de-dollarise. I'll happily be a 'fool' whilst fiat currencies melt down around me, including the US$ eventually. 7) Should the global financial system based on FIAT currency collapse, the gold will hardly be of any use either; AO: Why?! Gold has proved its store of value credentials over 5000 years. Will 'next time' be different...for the first time? 8) Owning gold bullion is only useful if one assumes that the future global currency will be based on gold, and that is a wishful thinking, as there is not enough gold available to meet the demands of an ever expanding global financial system and consumerism (why on earth do you think the global financial system moved to paper in the first place, and there is no going back!); AO: Incorrect. A future global currency doesn't have to be based on a gold standard. As long as gold has perceived and accepted value (proven throughout history) due to its rarity and other essential monetary properties (and its the only commonly accepted store of value by ALL countries), then it will have value relative to a new currency. Taking the other side of your argument, if there was to be a pegging to gold in a new monetary system, of course there is enough gold! It simply depends on what value you put on. $10000 oz should be enough. 9) Gold is old, cryptocurrency is a fraud, but digital FIAT currency is the future; AO: Again, not true. However, it is true gold is very old - manufactured inside Stars billions of years ago. However, this has no bearing on its value as money.. Cryptocurrency is new and not well understood by many people, just like the internet wasn't understood by many (most!) in the early years. Cryptocurrency is the first opportunity to break away from the control of central banks, money printing and inflation and many other evils.If you study it with an open mind, you might begin to see how it could very well become a future store of value. Digital FIAT, also known as a Visa card is what you currently have in your wallet, with all the weaknesses of paper fiat. 10) Gold's only worth lies in being pretty and ornamental (if you own gold bullion, how on earth do you know if your wife truly loves you or your gold assets? Only by not owning gold in any form can you be sure that you are truly loved, and being loved by a woman is priceless, and therefore you have every reason to be gold-free). AO: You have a strange understanding of true love and being able to recognise it.

Moron