The Law of Averages Favors Gold | Is Gold A Good Investment?

Is Gold A Good Investment?

The Law of Averages Favors Gold | Is Gold A Good Investment?

March 23, 2024 281 view(s)

Gold was up 1% for the week to $2,186, with silver up 3% to $25.17.  Platinum was also up 3% to $953, and palladium was up 2% to $1,105.

 

From a year ago today, gold is 14% higher, with silver leading, up 15%.  Platinum is 5% lower, with palladium down 26%.

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To answer the question “Is gold a good long-term investment?”, it matters how we define “long-term”.  Few investments have a longer track record than gold.  Across civilizations and centuries, gold has been a storage place for wealth and purchasing power for 5,000+ years. 

 

For those concerned about shorter periods such as 100 years or less, gold has a proven track record of protecting purchasing power.  The historical $10 gold pieces purchased by my Great-Grandfather for $10 each, have doubled in melt value nearly 7 times ($1093) during my lifetime (57 years).  The collector value of the same coin has doubled 8 times, to $2,186 over the same period.  All this while, no fees or taxes were paid, the gold was virtually unchanged, and was recently passed down to my generation with complete privacy (other than this article).

 

 

But for gold to be a good investment, you have to be able to sell it later.  For this reason, I recommend NOT purchasing gold or silver from Costco.  While their customers purchased $100 million worth in Q4/2023, Costco bought $0 from customers who wanted to sell it back.  Instead, purchase from a trusted company who will buy it back when you need to sell.


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