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I feel like you’re being way too harsh on the people who buy gold and silver. The fact is both of those commodities do tend to hold onto their value very well o
by BuyMyBitcoins 5y ago
I feel like you’re being way too harsh on the people who buy gold and silver. The fact is both of those commodities do tend to hold onto their value very well over long stretches of time. Sure, investing in an index fund would have yielded more money but we only know that in hindsight. It’s not universally true that the stock market gets people the best returns. The fact is that gold and silver, while dumb and simple elements, will last longer than any company or government will. And there is some value in that. I don’t fault risk averse people for investing in scarce resources.
- atweiden 5y ago> Sure, investing in an index fund would have yielded more money but we only know that in hindsight. As an aside, the S&P 500 is down since 1970 as measured in gold [1]. [1]: http://pricedingold.com/sp-500/ http://pricedingold.com/sp-500/
- imtringued 5y agoLet's all buy gold and do nothing. We'll be rich!
- Breza 5y agoI wonder how different the analysis would be if you'd bought shares in 1970 and reinvested all your dividends.
- Breza 5y agoWell said. I don't have any gold in my portfolio but I don't begrudge people who do. The risk of ruin is pretty darn small, so even if you give up money versus an index fund, you're unlikely to lose much value over the long run.