Gold is a commodity that would be considered of value almost anywhere in the world. Given the fact it is one of the rarest substances on earth and is easily stored and traded, gold is an excellent example of a store of value.
Why Do You Want to Buy Gold?
Do you want to buy gold as an investment because it’s going up and others are making profits? Or do you believe your finances call for having a portion of your net worth as a store of value? If it’s the latter, that is a decision you can make and feel comfortable with !
If it’s the first then you should consider other options (i.e. gold mining stocks).
Buying an asset that never produces cash flow because you believe someone will pay more at a later time is speculation or a form of gambling; not sound investing. Investors who invest directly in gold should be seeking a store of value, not a good investment.
This article was republished with permission from Arbor Investment Planner.