Invest in gold as a safe haven.
I’m sure you’ve heard that before, but is it smart?
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But every once in a while, when the stock market crashes or goes through a correction, people feel the need to revert to this tangible asset.
The interest around gold mounts, and its value, along with the market values of the companies associated with it, rises.
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Gold is quite stable and it’s accepted worldwide. But it’s not that you’re going to use your gold necklace as paying method for your bowl of noodles.
With gold stocks, you gain exposure to this safe haven. You also get dividend-paying entities. And you get companies that are increasingly creating shareholder value.
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Ever since the housing bubble crash of 2008, stock market prices of gold mining companies like Barrick Gold and Agnico Eagle have been going up and down, but not really growing.
So no matter what commercial and advice you hear on gold, it doesn’t really matter how long you hold onto gold, because the value stays rather similar.
If you just want your dividend payments, then buying into gold companies, is not a bad idea.
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As an investor you can invest in gold as a commodity, through your broker.
Or even buy gold through an index fund. You can even buy gold futures options. If you plan to risk your money in put and call options, maybe do it with companies instead of gold.
So if you plan to invest in gold, be my guest!