Should I Invest in Gold?
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- Опубликовано: 16 июн 2020
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In times of uncertainty, gold can seem like an attractive option... but is it really a viable long-term investment?
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
sources:
www.ancient.eu/gold/
www.theguardian.com/money/us-...
www.investopedia.com/articles...
www.investopedia.com/ask/answ...
www.nytimes.com/2013/07/28/bu...
www.doughroller.net/investing...
www.usinflationcalculator.com...
www.macrotrends.net/1333/hist...
www.investopedia.com/articles...
www.consumer.ftc.gov/articles...
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Philip Olson, CFP® and Julia Lorenz-Olson
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Andrew Matthews
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Gold seems like the perfect currency to bring if you’re a time traveler
If you plan to use gold as a form of payment like bitcoin, I would recommend not buying a bar due to lack of liquidity, nor coins due to high premiums. You'd be best off buying what is called a CombiBar, which is 50 or 100 1 gram bars connected to each other, which can be snapped off at any point in any amount. The premium is higher than complete bars but lower than numismatic coins. That's my free tip of the day.
@@guillermogutierrez-santana4446 why not buy 1oz coins. the cost of 1g clips are really really expensive.
Phantom Warrior I said so in the comment, 1oz coins have both an extremely high premium, and low liquidity since they’re worth $1700 each, where as a 100 gram breakable bar has $5600 in total value with each base bar holding $56 in value. They’re expensive? They’re only 5,930.82 each which is a premium percentage on par with kilos, with greater liquidity than coins.
@@guillermogutierrez-santana4446 well yeah the more bigger size you buy the cheaper it is. i found gold bars of 250g or even 1kg are much cheaper if you can afford them. and the price fluctuates by the oz. so the difference in value for the 1kg bar is crazy.
Nah you should use aluminum then go back a few hundred years
Gold isnt about growth. Looking at the rate of return is missing the point. It's about holding value no matter what.
Gold will never drop to 0
@@stevencooper4422 Why not? There is no basis for that statement.
@@John_Fx Because if it dropped that low, id buy it all and put a higher price on it
Way better than a savings account but historically not as good as stocks.. depending on the time frame. Good way to preserve buying power for 50+ years in the future but that’s about it.
@@John_Fx because gold has inherent value due to its unique properties.
well, in countries where inflation reaches 20-30% .. it is a whole different story!
That is why many poor countrys only export raw goods. They money is worth less
Stocks are just as much of a hedge against inflation as Gold. As is a job,.
Argentina, where I live, had 52% of inflation last year
@@euge7569 yeah in your case or in the case of venezuela, gold was the perfect inflation hedge (that and the dollar as well), but you have to consider other factors to decide which insturment to choose (tax, insurance, liquidity etc...).
Now crypto currency is being used as currency
Gold is insurance, not an investment!
That Hospital bill would say otherwise
Gold is money not an investment.
@@mmyr123 money is spent , gold isn't it's horded therefore it makes it a investment or a speculative purchase.
@@mmyr123 goldbugs out out out
@@TheOpenSourceMerc only if you are ignorant to what money is.
Two Cents needs to be a mandatory financial course for High School students 😉
And that's my "Two Cents" 😁😊
Why....they’re wrong soooo much. They should sell kool aid instead, you’re drinking it! Bwahahahah
@@stevenodland How so? im genuinely curious
How!?
Actually, personal finance SHOULD be MANDATORY in high schools.
Maybe middle schools too.
This episode is... gold.
I thoight it was a little too bearish on gold. You really have to get into the history to really understand how valuable a form of currency it is due to its rareity. Gold is classified as a tier 1 asset by central banks and the US Fed currently has 8000 tonnes of it stockpiled and may at somepoint put the USD back onto a gold standard
I see what you did there.
“Gold is money
Everything else is credit”
J. P. Morgan 1912
The biggest gold stackers in the world are central banks, that should tell us something..
But not really...
"1kg of gold for $500! Buy in bulk for 10% off!"
Space mining company, 2054
These days Gold is also a credit! All are just a mere digital value or a Certificate it's only the big banks who are legally allowed to sell it digital infinite times lol..
TheDark side real gold is real money that credit ponzi scheme will collapse sooner than you think
OMG, that animation where Warren Buffet looked at the gold and his eyes popped out? Yeah, I wasn't ready for that and I was drinking tea. I laughed so hard I coughed and sputtered and choked on my tea as I spat it all over my keyboard and monitor. Tea came out my nose...so yeah, thanks for that Two Cents animator!
M. S.S. Dayummmm😂😂😂
Hahahaha. Andrew is amazing!
Where can I find an animator like that?? Hahah
The Rusted Pixel wasn’t that funny
Warren Buffett lost billions in stocks so ya he’s a very good argument lol , good luck to all stock investors I’m sure the government will keep bailing u out with it’s money pinging power 😂🤣
The appeal of gold comes from one simple fact. The fact that throughout history as long as you have some gold you can pretty much always get food, shelter or safe passage anywhere in the world, the same can't be said for other metals due to bulk and other issues, it can't be said for any stocks and any fiat currencies or even food. Also, in our increasingly digital society, gold is a great tool to make sure if those things get seriously messed up you can still get some food after it happens.
i own a small amount of gold and silver, but land with timber and fresh water to raise livestock and grow a garden is much more valuable. i dont need gold to trade for food if i already have an over abundance of it.
i also of course own guns and have a robust defense plan to defend my property.
in my opinion things like food and firewood or lumber are much better SHTF trade options.
@@Big-Government-Is-The-Problem Have you ever been on Doomsday Preppers?
@@marlonmoncrieffe0728 nope, that show was canceled years ago. im not some crazy prepper anyways. im just a person that has common sense and likes self reliance.
In the USA if you run out of currency to pay your property taxes, you no longer own the land-the government seizes it. A combination of land and enough gold to cover property taxes is a good balance.
I’m a gold bug and thought this was fair. However I’d like them to explain why central banks of all the major countries have been buying record amounts of gold and repatriating their gold last few years
I know but I want PBS/2 cents to admit it
Gold is power, the more you have the greatest the control you have over the value that it hold. If you have a monopoly over gold this power is your. China, Russia and the saudis noted this and start buying gold like crazy, soon the US was buying too to not get behind
We hear you and thanks for taking the time for thoughtful feedback. We're obviously heavily limited in the amount of info we can cram into under 10 minutes. Mentioning this was in the first few drafts but got cut just due to time. Governments have and probably always will use it as a tool for their own diversification.
@the missile skud In an economic and/government collapse, I doubt having a truckload of gold would help you.
People who make that argument about gold underestimate the level of societal trust that is implicit in our day to day transactions/interactions (ie if I pay the baker $5, s/he will give me bread). That usually breaks down during a government collapse. For example, if you had a lot of gold in that situation, how would you defend it from an opportunistic party (like an armed gang)? Hire armed guards? What would stop the armed guards from using their weapons to seize your gold? Most rational people, when they know their country is collapsing, try to move their wealth into foreign bank accounts in a more stable currency.
This isn't hypothetical. There are plenty of people alive today who escaped modern conflict zones. I doubt the ones who survived and maintained their wealth did it through gold (vs bank account in a foreign currency)
@@TwoCentsPBS So the answer to "should you buy gold" is probably in short "Yes, *if* you don't have some already."
I hear it's about 10%
I remember learning when I was young that gold is good at retaining its value. Banks wasn't reliable then versus against now and there wasn't government protection against a bank going bankrupt. So keeping a portion of your savings at home was the norm.
Cash back in the day wasn't waterproof, paper could get soaked and ruined, coins could get rusted, and if you were to keep it for a long period of time, the value of money decreases since it doesn't earn interest like money in banks.
Gold was a safe option that wasn't going to "rot". The amount of money that is used to buy a car then if converted to gold, the amount of gold could still buy a car now. Even if inflation and all that.
Except once it's cheaper to produce such as space mining. I would say you have about 10 years or so max if that on your gold values. So even if you are saving a bit for the "end of the world" it not gonna be worth that much if as much as rocks.
@@rickytorres9089 when the world ends any form of currency will be moot anyway, might as well keep gold to melt and fix dental with. Hahahaha.
People always confuse gold with inflation hedge but it is not, gold is meant to just retain value. So if your currency becomes worthless, you still have something of value.
if currency becomes worthless, we'll go back to barter economies. I would rather trade accept ammo, bread, water, than gold.
It’s only a HYPER inflation hedge. Maaaaybe a stagflation hedge also. Other than that it usually retains value over the decades with big ups and downs and looks really pretty, makes jewelry and computers parts
@@RealRiders won't be like that forever.. thats when assets become useful
@Penultimate Hortator that is rubbish. Volatility and investment do not go hand in hand. I do not care about volatility, i care about safety.
What matters is long term.tendencies. you look at the dollar it has been going down. Stocks have been going up. Money printing has not. Gold has historical usage before money and stocks existed. Land as well. Do that or better yet create a youtube channel....
@Penultimate Hortator a modest return? With an overinflated market? That is such an excuse to keep on investing in odd times. Interest rates extremely low, Cheap money is everywhere. And ofcourse i am not saying to bet everything on gold, i am saying that it can belong to a properly diversified portafolio. The context changes everything.
Is it only me he looks like Ryan Gosling with mostache
Gold is never an investment, as it doesn’t earn you anything. It is a tool for wealth preservation.
It also historically underperforms both the stock market and the real estate, but keeps its value during a crisis. But we rarely know when crises happen...
I would personally keep all my savings in the real economy (stocks, bonds, real estate), up until just the interest/divident alone is enough as a main income. And only after that I would atart thinking about apocalyptic scenarios where gold might become handy.
In apocalyptic scenario I think you better stock up food and water, also cigarettes to trade for even more food not gold :)))
Minh Lương Lê Hoàng Agreed, those are the only things which ultimately have real value, not gold. But those have no future value (food goes bad etc...), so cannot be considered as an investent for the future.
What I’ve meant is that AFTER the apocalypse, when all my investments are gone, and my money is worthless, gold will be the best to start it over. Assuming there will be a new world order, and not just a permanent apocalypse.
@@juzoli Untrue. Gold has no intrinsic value in that situation. In such a world would you trade a shiny brick for food, water, bullets, or shelter? Why?
Hey guys, I also changed my perspective on this. Go look up Executive Order 6102, anyone hoarding gold was forced to give it back to the government at a fixed price or go to prison. If the US government could do it back then, surely they can do it when things get tough. Food, water and basic supplies will readily be traded should things go bad, as they're more important than something shiny when push comes to shove.
The good thing it’s our generation doesn’t understand gold so that’s a plus for the fed
Request for video: "Should I Invest in Lego sets?"
LEGO is crazy. How do they get away charging so much for little bits of plastic.
Jasmine V I can see it coming the lego bubble of 2030 lol
I invested my life savings in bagel bites at the beginning of the pandemic...... I forgot to refrigerate them.
My children insist on investing in playmobil.
Yes
Warren Buffett's Berkshire Hathaway started selling shares in banks and bought shares in gold mining stock last month.
The four most dangerous words in Investing is 'this time it's different', it causes downfall but Gold is worth your precious money because gold is precious.
Totally agree with you, The only way to save up money is to invest the money in something tangible that brings gain.I see Gold as the future
Totally agree with your opinion miss. Best advice I've come across today regarding Gold investment
What's the idea behind Gold investment anyway? Cause I buy when it falls and sell when it rises
@@jackbrown3075 Gold investment is just like every other form of speculative investment where you trade commodities to determine which gains or losses against another in order to make profit, just like in Forex trading.
@@mariasourness8366 Relating Gold investment to forex trading definitely means there are risks involved, and just how do you take appropriate risk measures?
Invest in gold, don't eat it
Bitcoin is really the safest way to make money in a situation like this I started investing in bitcoin three weeks ago, I invested as low as $500 and I can't really believe what I got as my profit
You invest in bitcoin too?
I have been making huge profits from Bitcoin lately my broker works very hard to make me happy
Yes I do
Really
Gold is like an insurance; you lose money as investment but in the worst case scenario could save you. Ray Dalio recommends to have a 10% of your portfolio in gold or precious metals as an insurance.
We're facing another great depression due to climate change. Gold will have little value over food.
I don't see how gold is a good insurance against a "worst case scenario". One lesson I think we all learned this year is that the currency of our post-apocalyptic future will clearly be toilet paper.
OMG are you the former president of Chile??
@@madthumbs1564 same thing can be said about stocks and bonds
@@RahulPawa Check out what happens in REALLY worst case scenarios...The Fall of Saigon is an instance where Gold got you out of the country and paper currency was worthless.
Gold is okay, but currently, I personally lean into the stock market because of liquidity and all. I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here. Is it a good time to buy into stocks or do I wait for another opportunity?
Of course! People are making a lot from the market even now. It's really not as difficult as many people presume it to be. It requires a certain level of diligence, which is something ordinary investors lack, and so a financial advisor often comes in very handy.
True. People underestimate how much they can make from the stock market. I started with $127k just before the pandemic hit. Many people's portfolios tanked, but I rode through with my financial advisor, and even made more than $86k within just five months of starting, and it's been an awesome ride since then.
This sounds great. Is there a way I could connect with your advisor or any other whom you think is very good? I'll appreciate.
The advisor I'm in touch with is Sharon Louise Count. There are other good FAs online too, if you look around.
Thank you for this. I just sent her an email, and I hope she gets back to me soon
Bitcoin is good but Gold is better.
Yes
Bitcoin is doing better too.
Yes people are really making money through Bitcoin trading
Well with the market favourable as it is Investing now wouldn't be a bad idea
Don't forget some precious metals
Nobody:
Literally nobody:
Me: Is that a gold shivling in thumbnail??
Shivlings are being discovered everywhere lately so I won't be surprised.
Dollars can be printed but not gold
A lot of things can’t be printed . For instance bitcoin can’t be printed as it is an electronic currency but is electronically finite. The technology that supports the money is the true arbiter about the stability of its value
Yeah, true, but then asteroid mining will become common in the next 50 years, so we basically will have infinite supply of most “rare and precious metals”
I don't keep gold or silver for an investment but more for security. Gold's been an acceptable form of payment in some manner for at least 2000 years. Now of course I don't keep all my money in gold for the reasons mentioned in the video.
Uh...gold can be mined? Granted that there is a limited amount of it on earth but we're far from extracting all of it, meaning there's almost always more to be had. There's a limited amount of air and water on earth too. And yet people aren't lining up to invest in it.
Yeah it's not as simple as that. Monetary policies are done based on prevailing circumstances. Fears of global hyperinflation are exaggerated. Also, is gold able to produce a stream of cash flows like a business (stocks) or bonds can?
Honestly guys, I like your content but this is not one of you better analyses. You got all hung up about inflation while not properly addressing the fact that gold is undeniably a great hedge against recession. In 12 out of the 14 recessions since 1929, gold considerably outperformed the S&P500, with one recession equal and only 1 out of 14 where the S&P did better (see chart below). 2000-2012 (spanning two recessions) was a good example. The S&P500 gave an annualized return of 0.677% WITH dividends reinvested, whereas gold returned 15.506% annualized over that 12 year period.
Thus, the S&P500 turned $10,000 into $10,200 ($200 profit!!) over those 12 years whereas gold would you have given you $56,396 for a profit of $46,396. Yes, you read that right...that's 232 times the total dollar profit the S&P500 returned! And you can repeat that to a greater or lesser extent going all the way back to 1929. In this light, it's not surprising to learn that almost all of the world's central banks have been buying up gold over the last couple years, obviously to hedge against an upcoming recession and its associated effects (potential currency devaluation etc..).
www.macrotrends.net/1437/sp500-to-gold-ratio-chart
dqydj.com/sp-500-return-calculator/
dqydj.com/inflation-adjusted-gold-return-calculator/
Why yes, I do think IKEA is all about brightness, happiness, and possibility. Until I'm left crying 4 hours later with the furniture pieces all over the house.
Channel your inner Bob the Builder
Hah! 4 hours later you'll still be in the IKEA maze trying to get out. Let me out IKEA it has been 48 hours, what more do you want from me?
Doesn't mention gold standard linkage history, and why money has any value.
True
Subscribed. And this is the second video I'm watching. This channel is very informative and fun
Thank you so much.
Gold is still the standard world currency. This video is local to US market and not world market.
In India, along with physical gold metal we also have the option to buy gold bonds (no risk of theft and safe storing but, still as liquid as material gold).
In India, gold is a primary investment tool which is backed by thousands of years of its historical use and value in society.
Did I miss something or did you at 3:46 compare the gold price increase since 1990 with the bond increase from 1920 and 30 years forward?
It sounded like she was taking that the 100 year average return on bonds and treating it as a fixed annual return for the period since 1990.
Shady math: I expect better from Two Cents.
Please help me understand this,
They are being manipulative right ?
thankyou guys.
hi two cents. thank you very for your educational videos. should i become a trader and whats your take on CFDs
That Thumbnail is rly good. :)
I just discovered your channel.
Hope to learn a lot. ;)
Cheers
Jannis
I really liked the little animation with the crazy gold huckster.
Great video. I was wondering when you would touch on the subject. I got curious when I was studying on the subject of the gold standard.
Nice concept of different types of investments!
I love you guys! A few things missed...looking at long term pricing cycles for Gold (especially before the 80s) is disingenuous because it was illegal to purchase gold (in the US) as an investment asset until 1975 which created a lot of pricing action that needed to account for the previous ~50 years. Additionally, we need to consider Gold as a global asset that has tremendous demand in Asia. Finally, in recent years the Chinese and Russian central banks have had huge inflows of Gold purchases with less purchases of US currency/bonds/assets...we have to ask 1. Why? and 2. How does this impact pricing for gold as a commodity?
Overall this was a good attempt to summarize the factors around gold in a short video, however the topic is a lot more nuanced than this made it seem.
Me paying at WalMart with a gram of gold:
WalMart clerk: "I said $52.81."
I see you're a person of culture
Fantastic job covering a very touchy subject!
Love you guys!
Do one on silver.
The introduction of a Bitcoin EFT marks a groundbreaking moment in the cryptocurrency world 🌍, merging digital currencies with traditional investment methods. This innovation could stabilizer Bitcoin price and broaden its appeal to a wider range of investors, potentially increasing demand and value. At the heart of this evolution is Benjamin Rodriguez, whose deep understanding of the both cryptocurrency and traditional trading has been instrumental. His holistic approach to investment and commitment to staying abreast of market trends make him an invaluable ally in navigating this new era in cryptocurrency investment.
I will be forever grateful to you, you change my whole life and i will continue to preach on your behalf for the whole world to hear you save me from huge financial debt with just a small investment, thank you Benjamin Rodriguez
I'm shocked that you mentioned and recommend Benjamin, I thought i was the only one trading with him
I agree that there are strategies that could be put in place for solid gain regardless of economy or market conditions,but such executions are usually carried out by investment experts or advisors with experience
When someone is straight forward at what he or she does people will always speak for them, I know a couple of friend who make profits in the financial markets
Yes!!! That's exactly his name (Benjamin) so many people have recommended highly about him and am just starting with him from New Brunswick Canada 🇨🇦
I definitely agree. Great video
Very nice
It's kind of amazing how, despite how "advanced" we are, that we are still attracted to shiny metal and shiny rocks. I'm sure that an alien observing this would be completely baffled by this behavior.
Yeah I agree and though the comment above me has a good point
You can either be limited to only barter, which is actually barbarous, or you can have a medium exchange. If you have a medium of exchange, you can either use worthless fiat currency which screws over the average person or you can use precious metals. There really are only three options of barter only, population screwed over by those in power via fiat currency, or using precious metals as money.
Its not only a shiney metal but a rare earth metal that cannot be created into existence like Diamonds. The earth is almost all mined for gold at least in the areas where its viable to mine. Its rareity means that the government can't debase the value of gold by printing more of it.
Gold is the only metal that both doesn’t corrode and has highest electricity conduction at the same time. Which is imperative in sensitive electronics
10 000 years of evolution where people who had this metal where wealthy, and so go to reproduce more freely driving natural selection in the age of civilization is more than enough to form a innate biological and cultural urge to own it.
Heck we still have in instinct of fear for snakes build into our psyche because they where our primary predators 100 000 to 1 000 000 years ago
Is there a Two Cents ETF?
LOOOOOOOOL I haves feeling it’ll bea series: depreciating car ETF, mortgage ETF, and emergency fund ETF
I just love your channel 🙏🏼❤️
Special thanks to your animator) a chunk of gold looking at Buffet is priceless)))
I prefer index funds 💯💯
Never invested in the gold markets but the profitability of the forex markets especially in this present time can be compared to none.
Forex can be very profitable if done right. it feels so good earning $2k weekly out of the forex markets.
I have been trading forex for the past months now, I have actually made some profits which I've currently lost about triple of it. Guess luck wasn't on my side
I've heard about forex, how can one get involved in this?
Huma, did you just say luck? It's obvious you don't know how to go about your forex trades.
Vigil how do you earn $2k weekly from forex. I'm interested in earning too.
U guys are killing it!
Very informative, gave me a head start if I should be investing in it and btw you rock that mustache 👌
You guys are the best!
I actually thought of investing in gold when this Corona started. I was hesitant though because after all gold isn't worth much. One whim of some rich guy and I can lose everything. Your video only confirmed my concern and put my thoughts in better words plus used arguments I wasn't aware of.
Thanks!
As opposed to putting your money in stocks or bitcoin? Gold is a savings account in case youre worried about the fed printing trillions causing inflation. Most people hold 5-10% of their worth in gold as a hedge against hyper inflation. After all the usd isnt backed by anything and can be completely manipulated by the government
I invested in airplane companies, I'm up about 50%
But a good investment company sums it up and monitors inflation as no one has trust on Fiat currency... stonewallinvestment isn't bad since it's regulated and registered
Iam sad for you,
They convinced you that gold is not good hedge.
I think you need to reconsider that, especially in this crisis and the upcoming two or three years.
The good thing it’s our generation doesn’t understand gold so that’s a plus for the fed
Ben Shapiro typing furiously in the chat
Ben Shapiro: "Well actually gold value is a myth."
@@guillermogutierrez-santana4446 Where did he say that? I just know about how he always advertising that company that said you should invest in gold.
www.birchgold .com/ ben-shapiro-gold-company
Haha, I agree. It drives me crazy when he promotes Birch Gold Group.
the disappointed koala It’s a joke because of how much shit that he believes is a myth when it’s obviously not.
Isaac N You should be more worried about that people he’s receiving money from quietly
Great Video! Can You Guys do one on Dividend Stocks?
Invest in index funds .. hedge it with gold bonds..better approach!
People thinking about investing in gold should consider silver as well. Silver is oddly cheap relative to gold at the moment.
I Think the Problem with diversifying precious Metals is that in some countrys for instance Germany there is no tax on Gold but the regular tax Rate of 19 % applies to Silver, Platin etc.
Gold, Silver and Bitcoin are the scarce assets that should be in everyone's portfolio!
You guys are awesome! Thank you for your videos!
So glad i found this channel
Thank you so much for the efforts on these videos, I love them all so far, and you people are actually helping the youth save money, at least if they listen
Gold is valuable because it has properties that make it a good medium of exchange. That's the value. There's a reason it was used as money for so long.
6000 years later it still has substantial value 1800$ an oz. every fiat currency in history of mankind has lost all value at some point
@@user-oy9zy4ds9m That's why you exchange for new fiat currency every now and then. Gold is a fiat currency too, just a different type.
Nice!
New sub
I love your channel guys
The gold silver ratio is over 90%. Silver is the best buy currently.
It's a massive bet against anything the world throws you.
If you have a sizable profolio, investing some money in an asset that is likely to go up when everything else would be going down wouldn't be a terrible idea. But it's not something beginner investors should worry about. Which is what I'd assume most people watching this video would be.
Hi Guys do you have a video on Robot investment thing such as stash away or Etoro. would love to know more
Can you guys please provide a link to buy gold? Thank you 🙏🏽 can’t wait to but all my $5 dollars in gold.
I did, sold all of it a few years ago. Paid off all my debt, created a safety net and started maxing a Roth IRA.
Why did you buy gold instead of paying off your loans in the first place? Why did you buy gold outside of your Roth IRA?
You should never sell it all , should keep at least a little as insurance against economic turmoil
Nothing bad can ever happen.. Everything will be good forever!
@@guillermogutierrez-santana4446 it was before I had a Roth IRA. I bought into it after hearing about gold investments from my uncle. Came to terms that I lived beyond my means and changed focus.
@@azncs11 exactly
As we create more and more technology that requires high electrical or thermal conductivity we'll use more gold for those electronic applications.
So unless we come out with another easily maliable substance with the endurance and traits of gold, we'll continue to use more of it for the uses we have for it.
So what should countries that have gold reserves do with them? Is there a better (more profitable and more secure in valuation) type of reserve for countries?
what about platinum? where could I find charts to see the volatility of precious metals over the years that you guys were referencing in the video?
I'm getting very strong retro vibes from you guys. The calm way of speaking, and the whole setting. Especially the stache. I Love it!! not everyone can rock a stache and still manage to look good. Love the content too. Very informative.
Gold is a hedge against inflation. We are supposed to be on a gold standard. Gold prevents countries from inflating a currency and devaluating it. A country who backs there currency with gold will be a more trust worthy, since it shows they can pay there debts. Although this video is talking about investments, it doesn’t mention how fiat currencies eventually fail. Yes it is hard to to trade with it. Look at why in only 109 years prices of product costs so much more now due to inflation.
Unfortunately that's ancient history now. Fiat money sucks :/
Fiat Money almost a century now and is very successful. Well managed is way better than gold standard.
Wrong we’ve only had fiat money for 49 years. We only left the gold standard in 1971
Joe yes you are correct. I’m referring to the federal reserve.
shadowmax889 so the country being 23 trillion in debt is good money management? When you expand the money supply, you lessen the value of the currency. The U.S. will have to pay its debt one day. That will be terrible. We should have gone through an even worse depression after 2008. But inflation from the fed caused us to kick the van down the road. The free market must be allowed to fail and rise.
These are really good episodes!
What about silver?
Old habits die hard. Once our attachment disappears the value will tank.. or not just look at the diamond industry.
I rather buy my wife a gold ring than a diamond ring
Yes when the habit of inflating our currency can no longer be done, we will understand why we were originally put on a gold standard and not a fiat currency.
Never going to happen.
We can make artificial diamonds relatively easily and inexpensively now, to make artificial gold is still extremely difficult and costly
Listen to Peter Schiff!
This was super informational!!
You've got to be kidding? It was a bunch of crap.
Loved this explanation. Made me remember Graham Stephan's video explaining gold, very good video too.
Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it has always maintained its value over the long term.
I think gold is something you buy in your 20s as a safety net for your grandchildren. It is not something you should need to touch within your lifetime. Except if there is a global pandemic, you lost your job and you have nothing to eat, then you may sell the gold 🤷♀️
Absolutely brilliant breakdown.
Something else that isn’t mentioned is how often gold price is manipulated it’s a bit concerning
But you'll buy gold with fiat money then if you want to spend it you'll have to exchange it for money 🤔
I actually think bitcoin investment is more productive than Gold. Speaking from the amount of profit generated from bitcoin over time..
I totally disagree with you. I think gold is more profitable than bitcoin.
@@dylanlevett1814 hahaha
you probably still wasting your time buying gold. Where you can as well trade bitcoin and make fortune out of bitcoin investment. I invest in bitcoin and I make consistent $10 000 in two weeks
I disagree with you bro.
Wow. How you make much profit. You trade bitcoin or you just buy bitcoin?
@ 3:18
Loved that video of the gold salesman!
And what about much cheaper option like silber or platinum?
Errr... blue is complementary to orange, not yellow. =P
Depends on what shade of blue bruh
They're talking about light, not pigment. If you subtract blue light from white light, you're left with yellow light.
Haven't even finished watching the video and I already love it.
You guys look great! Hope you two and the babe are staying safe and healthy ❤
What a great thumbnail!
Gold is a form of insurance, if you want to store buying power over time, you choose Gold.
If you want to increase your buying power in the future, you choose stocks.
If you want to create buying power, you choose commodities (land, timber ...)
If you want to lose buying power you choose cash (Fiat currency/regular money)
Warren buffet also lost billions in stocks while my gold keeps rising in value so good luck to all the stock investors your in the mercy of the government and its printing power !!
God, i love these couple so much. My only go-to channel for financial education,
Recient Im here in you Chanel, I learn english, good material thanks
"Money is gold, everything else is just credit." JP Morgan.
Gold and Silver are money because they have all the attributes of money. They require effort to acquire and are limited in supply, (can't be typed into a spreadsheet) They are divisible, fungible, they won't kill you, (radiation or toxicity) they are durable, (They don't decay) and for the entire monetary history of humanity, they have held value. Money must hold value over a long period of time. The currencies we use today are specifically designed to lose value over time to allow governments to get out of their debt.
They are a time tested and proof and hedge against inflation, for thousands of years when empires to base their currency to pay for socialist programs and military expansion. In the old days they would clip coins or dilute the purity of the silver and gold. Now they print paper and type numbers into spreadsheets. (The difference between one US dollar and a trillion is 12 keystrokes) gold and silver hold value over long periods of time they compensate for the loss of purchasing power and the increase in the cost of living which is called inflation, even though the true definition of inflation is an increase in the currency supply. Whatever you have more of something the value goes down. there is no physical limit to how many dollars or euros or yen or any other national currency that can be printed or typed into a spreadsheet. Hence, They have an infinite supply, and the assured goal to lose value. there have been almost 5,000 of these currencies and all of them have gone to zero. There is no difference in our modern fiat (legal tender by decree of government, not the market) system.
gold and silver is what humanity has chosen and I personally believe had we had the technology to isolate and process it, platinum and its family of associated metals would also be money.
Gold and silver are money because that is what the free market has chosen. Although both silver and gold are severely undervalued nominally, fundamentally they are also severely undervalued Not in terms of dollars or cents but in terms of what they can purchase. I think silver is the most undervalued asset on planet Earth right now, And I think sometimes sooner than next year, sometime in early winter, we are going to see global financial crisis like has never been seen in the history of humankind and the physical supplies of silver and gold are going to disappear faster than you can snap your fingers.
The physical silver market is such an unbelievably tiny market that there are individuals that could buy all of the above ground silver on planet Earth at the current spot price, if it was for sale. The gold market too is severely undervalued but not so much as silver.
2:59 gold will always hold its purchasing power, The dollar price of gold is irrelevant because the dollar will end up collapsing just like every other fiat currency. it's what that ounce of gold can get you which is practically universal and has been steady for 4,000 years. yeah all the numbers in the markets keep going up but the value of those numbers keeps going down, You can't buy a house anymore for $5,000 US dollars or buy a year of Harvard for $1,200. You can still get the same goods and services 2,000 years ago you could buy with an ounce of gold today.
The purchasing power of the US dollar has gone down 97% since 1972. gold and silver are not income producing assets They are wealth preservation They are a form of wealth insurance just like you'd have renters insurance or car insurance.
4:27
How many people today can make enough money in a year to buy a house outright? Very few. Yet just 60 70 years ago that was not the case. The numbers have been inflated and wages never keep up with inflation.We can't trust any of the numbers over the last 50 to 60 years because it's all fake it's all powered by Central banking fractional reserve banking running on a backless currency. The gold and silver electronic market is leveraged many thousands of times over compared to how much metal is actually available for delivery. When you're trading on margin and there's a sudden drop you have to sell something in order to cover your margin costs and oftentimes they have to dump whatever they can which can include their gold and silver holdings, usually electronic which means digital which means no physical backing. At the same time around the world organized dumpings of more certificates onto the market will happen so that there's a sell-off of actual real people selling off their holdings to cover their margins and their debts alongside the introduction of thousands of new contracts to hammer the price down.
This is all a manipulation that is soon coming to an end and governments are going to switch over to a blockchain-based digital currency and very likely will end up having to at least partially back it with a physical metal for people to have any faith in it.
What about Space Mining when we will be able to haul in more eventually at a similar/lower pricing of in land mining? I sure in the next 10 years or so max that would "ruin" the premises of it being "hard to get" because it would be dramatically be increased in supply?
@@rickytorres9089
A common objection.
Number one: We are assuming that the universe is metal rich, until we actually get out there and start processing these asteroids and mining on planets we won't know. It is actually entirely possible that our solar system could be unique to where it comes to elements that are heavier than iron. Or not. If such elements as gold are indeed among the rarest in the universe as our current theories about how they are made has to do with a supermassive star going Nova, We may have been quite fortunate.
Number 2: in order to justify the price of asteroid mining the valuation of silver and gold at present-day values would have to be magnitudes higher, No different than any other commodity. Like oil. If oil prices are barely at a level per barrel where you can make a profit even in the best of circumstances when you pull it out of the ground it does not incentivize anyone to go prospecting and drilling for new supplies of oil. Flip that on its head, If you have a high demand for something and a limited or shrinking supply it incentivizes people to find more of it or figure out something else to replace it. If too much supply starts coming in to meet the demand then the valuation lowers and there's less incentive for production of that resource. So production and supply will continue to wax and wane based on the availability for demand.
Gold and silver have grown at a rough inflation rate (expansion of supply) of a low 1% to a high of 3%, with a 10 to 20% purchasing power fluctuation rate, measured over 500 year time periods. Compare to 4,800 Fiat currencies that have collapsed. Because it actually takes physical effort to locate refine and transport gold they can be incorporated into the economy at a much more stable rate than new blockchains can be created or Fiat currency typed into an account.
Number 3: most sci-fi shows seem to incorporate some aspect of pseudoscience commonly known as overpopulation. This is a myth, A myth that has been perpetuated since the 18th century when they used to preach that by the time the Earth had 500 million humans we would no longer be able to support ourselves. The academics and intellectuals continue to miss a 5,000 year fact: The more minds we have free to work on problems the more solutions we can come up with. If you want to know what we do if we ever reach the point of overburdening the planet, look up. You could support a civilization of quadrillions of people on the moons of Jupiter which is like a mini solar system. What's my point? My point is that As the economy grows, so does the supply and demand of goods and services. Therefore the demand for a medium of exchange to render those goods and services also grows.
Do you think it makes sense to measure asteroid mining by our current population and GDP?
Number 5: It is much more likely or should I say much more feasible and a lot more based in common sense (really smart people, academics, and intellectuals tend to have a severe lack of common sense) to finish exploring the ocean beds to look for deposits of resources. It's actually ocean mining I would think we should be pursuing.
The final point I would like to bring out is that gold and silver like every other element on the periodic table are unique and cannot be replaced for their unique applications such as in advanced technology or medicine.
@@HoneyBadger1779 Thank you for reassuring me of my worries and explaining to me about even if should happens in our lifetime (or at all) it's not something to be worried about too severity impacting the value of gold and other precious metals. Even if we would be able to extract in them from space/oceans/etc.
@@rickytorres9089
It's a concern but not for a long time. Definitely not within this current financial crisis we are in the beginning of.
Best thumbnail ever
Nice
Much needed video. Thank you guys. 🙏🏻love from India ♥️