macgyver
TID Board Of Directors
- Nov 24, 2011
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@ItalianMuscle I never said gold was 'bad'. I said it is part of a balanced portfolio. It is NOT however a very good growth asset(if you look at it's actual performance over the years)
It has had almost zero growth over past 10 years. Whereas that same money invested in s&p is 2.5x over same time period. So if you bought 10 k in gold, you still have 10k in gold (but the dollar is weaker so there is less buying power with it. But if you took same 10k and put it in sp, you have 25k now
Also sorry to sound foolish. This 'I dont have to pay taxes on my gold' stuff. Well sure, that is great if you want to move 5,10 maybe 100k. But what if you want to make larger moves than that? What do you do when your net worth is in the millions rather than a few 100k? That model does not really translate to any real world success unless you want to live like a drug smuggler.
Say you want to convert some holdings into real-estate or something. That 'off the grid' model starts to fall apart when you have assets of significance. By all means, I think having assets on hand at the house at any given time. For me it has always been cash, but gold will have more 'value' in an end of world event. I like being able to make cash deals on things that pop up that I want to buy. But any more than that is a waste. My real assets are invested. Thankfully for me, I choose to put almost all my resources into real estate over the past 10 years. Sold my 'play money' stocks about a year ago and bought another car. (60k up on that car in the time). I did not buy the last one as an investment. Just bought it for fun, but it is great that is has appreciated.
No crystal balls. But any approach to investment should be a balanced one. Just like we all buy and pay for insurance. To me gold in a portfolio is very similar. Not something you are really making money on, but a useful holding if things go south.
It has had almost zero growth over past 10 years. Whereas that same money invested in s&p is 2.5x over same time period. So if you bought 10 k in gold, you still have 10k in gold (but the dollar is weaker so there is less buying power with it. But if you took same 10k and put it in sp, you have 25k now
Also sorry to sound foolish. This 'I dont have to pay taxes on my gold' stuff. Well sure, that is great if you want to move 5,10 maybe 100k. But what if you want to make larger moves than that? What do you do when your net worth is in the millions rather than a few 100k? That model does not really translate to any real world success unless you want to live like a drug smuggler.
Say you want to convert some holdings into real-estate or something. That 'off the grid' model starts to fall apart when you have assets of significance. By all means, I think having assets on hand at the house at any given time. For me it has always been cash, but gold will have more 'value' in an end of world event. I like being able to make cash deals on things that pop up that I want to buy. But any more than that is a waste. My real assets are invested. Thankfully for me, I choose to put almost all my resources into real estate over the past 10 years. Sold my 'play money' stocks about a year ago and bought another car. (60k up on that car in the time). I did not buy the last one as an investment. Just bought it for fun, but it is great that is has appreciated.
No crystal balls. But any approach to investment should be a balanced one. Just like we all buy and pay for insurance. To me gold in a portfolio is very similar. Not something you are really making money on, but a useful holding if things go south.
