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Because gold will appreciate reliably to an extent but a company can appreciate in value far exceeding what gold can -- that's the risk/reward trade off.
by s_dev 1y ago
Because gold will appreciate reliably to an extent but a company can appreciate in value far exceeding what gold can -- that's the risk/reward trade off.
- Oras 1y agoThe chances of a startup failing is way higher than gold degrading in price.
- s_dev 1y agoIt sure is and many do choose gold for this reason. It depends on how much risk you want to expose yourself to.
- 9rx 1y agoHence why the potential upset of a business is so much higher. Risk vs. reward, as usual.
- sukhavati 1y agoif an investor already has X% amount of their portfolio invested in gold, they might seek to diversify by investing in uncorrelated ventured such as startups. an investments idiosyncratic risk/reward is only meaningful in relation to other investments in the universe of choices the investor can make.