People have always loved flashy things, and they always will. Gold is the same way. If you ask someone over 70 if you should buy gold bullion, they will probably tell you about “real money.” They have a point. It’s magical to grasp a sparkling bar, feel its weight, and know that it has withstood wars and bad economic decisions. So, is buying gold bullion a good investment, or is it just a pretty paperweight? People have a lot of different ideas. Gold is old school. It doesn’t provide you dividends. It just sits there, looking smug, while your friend’s stocks go up and down like kangaroos on a trampoline. For a lot of people, that’s a good thing about gold.
Let’s talk about inflation. The “cup of coffee used to cost a nickel” arguments and the fear of rising prices. For decades, gold has gone up in value along with inflation, even when paper money began to act like Monopoly money. Not perfectly, though. Gold prices fluctuate up and down with the news, politics, speculations, and even Twitter drama.
Gold doesn’t rust or go bad. You can bite it, but please don’t. Dentists aren’t cheap. In the past, civilizations used gold bars and coins to quantify wealth. It’s almost like it’s part of fairy tales and pirate stories. And if you like living on the edge, you can keep bullion under your mattress, which is different from tech stocks or NFTs.
Here’s a funny thing: gold never goes bankrupt. Companies go out of business, currencies lose value, and real estate markets crash, yet that gold bar just continues flashing. It’s not all roses and sunshine, though. Holding gold doesn’t make you money. If you keep it at home, you risk bad luck. You’ll have to pay for storage and insurance if you keep it in a vault. Buying and selling costs money. There is a cost to having peace of mind.
And liquidity—let’s think about it. Selling gold isn’t usually as rapid as cashing out equities if you need cash right away, unless you have a dealer on speed dial. The price of gold in your pocket will always be a little lower than what the spot market suggests. That’s the dealer’s cut, and most of them aren’t giving it up because they want to.
Gold frequently shines when it comes to diversification. Financial experts talk a lot about “not putting all your eggs in one basket.” They have a point. Gold is a good addition to a variety of assets. It adds color and can even act as a life vest when the markets go down. Some people swear by the “10% rule,” which says to keep 10% of your investments in gold in case governments do something stupid again. They’ve definitely done that.
Of sure, there are fakes. Not everything that shines is gold. Always look for the right marks and sellers who are trustworthy. People dream of finding a block of gold at flea markets, but most of the time they only get painted lead or a bad attempt at alchemy.
Gold is like a security blanket, a lottery ticket, and a memory all in one. Don’t expect to get rich quickly. Also, don’t expect your kids to compose poems about the day you bought gold bars. Will gold make you wealthy? Possibly. Will it make you feel bad? Not as likely as most things with flashing lights.
Don’t believe the crazy things people say on some parts of the internet. Treat gold bullion like an old friend. Calm and steady, maybe a touch dull, until it isn’t. That’s actually the test. Can you understand how nice it is when the storm clouds come? You might be a gold person at heart if so.