Invest in gold as a safe haven.
I’m sure you’ve heard that before, but is it smart?
00:00 Is Bitcoin the new gold? Or should we invest in actual gold?
00:38 Even though gold is known as hard cash around the globe and it holds its value no matter where you take it, the shiny metal doesn’t hold power and ruled lands like in the past when kingdoms used it to wage wars over it.
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.
02:30 Why is gold the safe haven for so many investors?
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.
05:26 Can you safely invest in gold, especially in volatile stock markets?
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.
06:38 How about investing in gold itself?
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!