They are commodities, the price fluctuates with speculation and do not produce any real income such as interest or dividends. People like them because they either want to make money quick, which they saw comercials that told them that they would. A second reason may be due to them being of an older generation where Gold and Silver were money to them, and they do not trust the fiat currencies of today. Other reasons include people who are doom and gloomers who think the world is going to end and gold and silver will still have some value after the colaps of the dollar, but food would likely be more valuable then. Other people think that it is a safe investment that is a hedge against inflation or times of panic and chaos in the markets. From experience I can tell you that stocks produce a better return then precious metals, and are much easier to deal with.
You are wise beyond your years, Garrett. Let’s review.
Gold and Silver are commodities that are traded purely on speculation (you believe someone will pay more for it in the future than you did in the present). This is not investing and should be avoided at every turn. Commodities provide no income and that should be enough to scratch them off the list, but sadly, far too many people own these two asset classes. Why?
Just as Garrett stated, fear and greed rule the day for some. The world is going to hell or you are going to be RICH. Either way, you are letting emotions drive your decision-making and that is a very bad idea. Do yourself a favor, let someone else buy the Gold and Silver as you buy those boring and very efficient no-load index funds that own stocks, bonds, and REITS. They produce yearly income and have the best historical return by far. Become the wise and efficient investor!
They are commodities, the price fluctuates with speculation and do not produce any real income such as interest or dividends. People like them because they either want to make money quick, which they saw comercials that told them that they would. A second reason may be due to them being of an older generation where Gold and Silver were money to them, and they do not trust the fiat currencies of today. Other reasons include people who are doom and gloomers who think the world is going to end and gold and silver will still have some value after the colaps of the dollar, but food would likely be more valuable then. Other people think that it is a safe investment that is a hedge against inflation or times of panic and chaos in the markets. From experience I can tell you that stocks produce a better return then precious metals, and are much easier to deal with.
You are wise beyond your years, Garrett. Let’s review.
Gold and Silver are commodities that are traded purely on speculation (you believe someone will pay more for it in the future than you did in the present). This is not investing and should be avoided at every turn. Commodities provide no income and that should be enough to scratch them off the list, but sadly, far too many people own these two asset classes. Why?
Just as Garrett stated, fear and greed rule the day for some. The world is going to hell or you are going to be RICH. Either way, you are letting emotions drive your decision-making and that is a very bad idea. Do yourself a favor, let someone else buy the Gold and Silver as you buy those boring and very efficient no-load index funds that own stocks, bonds, and REITS. They produce yearly income and have the best historical return by far. Become the wise and efficient investor!