Gold is a terrible investment. If you bought an ounce of gold for $850 in 1980 it would be worth $1950 now. If you invested that same $850 in an S&P 500 index in 1980 it would be worth $101,000 now.
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Do you have a traditional "savings" account?
- Thread starter GeauxLSU
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I'm afraid so. And to add injury to insult, they starting charging me a dormancy fee after I let it sit untouched for twelve months. I didn't catch it for a few months. Promptly went down and closed the account, while telling them what I thought about dormancy fees...
Had one bank try that with me, called and talked to someone, they apologized and said that would not happen again. So far, so good.
We keep the emergency fund in a savings account.
You can buy treasuries and CDs in your Roth. Avoiding tax is a huge profit in itself.
You can buy treasuries and CDs in your Roth. Avoiding tax is a huge profit in itself.
I know it is a waste of time, but I will respond: Physical gold is purchased and held as a store of value and not purchased as an investment, especially when priced in fiat currency, which has no inherent value. Try adjusting your $101,000 for inflation. Adjusted for inflation, your $101,000 in fiat currency is worth $3109.00 in 2023 fiat USD today. Tomorrow, who knows.What do you have when the USD fiat currency goes to zero?
In a monetary collapse, which is baked in the cake, ....... with gold and silver, you have a prayer, fiat currency nothing but air. Fiat is good as an investment only long as you have a chair when the music stops.
Wow, this sounds terrible. Now what's $1,950 worth when adjusted for inflation the same way?
My recollection of middle school math suggests that the PV of 1,950 should be somewhat less than the PV of 101,000 but I know that in the gold and silver land math works differently.
In the long run we are all dead.
Low-level inflation is a feature, not a bug as it stimulates capital markets, investment and economic activity.
If one truly believes that monetary collapse is inevitable in the short to intermediate term, this requires a complete lifestyle change and then, yes, plowing all of your income and savings into precious metals (as well as land, canned food, MREs, bunkers, guns, ammo, etc) almost starts making sense.
I have $140.24 in a savings. At one time I had $450.00 in the same account. And the .24 is what it's earned me since I opened it in 2020. So I took most of the money out and opened a Roth IRA with Edward Jones. Not doing THAT much better but I got it. Now I have an open savings account just to say I have one.
What does inflation have to do with what I said? If you want to bring inflation into the equation then a long term investment in the s&p 500 will always outpace inflation whereas an investment in gold will not.
If you're worried about a complete economic collapse to the point that the US dollar is worth nothing then I would invest in land with a clean water supply, guns, ammunition, knowledge of how to survive off grid, heirloom seeds, and whatever else you can think of thats useful. I don't believe that gold and silver will be very valuable in a survival situation.
