Everything you need to know in 90 seconds [Thread]
A) Gold is usually seen as a safe haven investment during periods of uncertainty
B) Place to store value when interest rates are low
C) Used to hedge against inflation
D) Speculators who trade gold - but don't necessarily take delivery of it
Is it a good time to pawn of your granny's jewelry? Absolutely. Bonus points if you take if off her while she's asleep.
Worryingly, right now there's a strong correlation between stocks, golds & bonds. It generally ends badly when asset classes move together
visualcapitalist.com/12-stunning-vi… has more comparisons.
Buying stocks directly in gold mining companies is an option but comes with other exposures: labour issues/ shutdowns/ exposure to other metals in the portfolio/ management issues
AngloGold is up 92% this year. Harmony Gold is up 136%. Solid returns.
Of course, if you watched Money Heist you know the costs of insurance, storage and security of physical gold can be a massive headache.
1. bloomberg.com/opinion/articl…
2. ft.com/content/550d90…
3. cnbc.com/2020/07/27/gol…
4. goldprice.org
5. visualcapitalist.com/12-stunning-vi…