Is it worthwhile to invest in precious metals?

Is it worthwhile to invest in precious metals?

Not at the moment, maybe nearer the end of Biden’s administration, opportunity may present itself.

We need to learn to wait, there is a time for everything.

If you want to invest for a long term for 4/5 years, I would say that you may want to wait for the Gold price to come down. However, if you want to invest for some weeks or a month or two, you may buy Gold.

Definition: worthwhile - compared with expectations or other asset classes?
Definition: invest - long term (30 years), medium term (5 years) or short term (less than 5 years)?

So I can tell you my experience of investing in gold and silver over about 33 years. The long term compound return in Pounds Sterling has been about 6% per year. That was not my expectation (which was about 7% to 8%) but it is close enough to my expectation (and to inflation over that period) to have been worthwhile. For me, worthwhile is “did it maintain its value relative to cost of living” in which case my answer is yes.

For 33 years the objective of holding gold was to be between 5% and 10% of our net worth, and to be an insurance policy against far more adventurous and less boring things to do with your savings over the years.

My recommendation, therefore, is to be sure of your own definition of the words “worthwhile” and over which time period, and then decide whether gold (or silver, platinum, palladium) fit into that definition based on history.

I am also a forever optimist, and I happen to think that gold is way undervalued. If it ever has another “true up” against currency printing like it did in 1980, a price of between $10,000 and $100,000 an ounce would not particularly surprise me. That is the reason that, once obtained, it is psychologically very difficult to dispose if it. It’s been around as a store of value for over 5,000 years. And you can’t say that of the USD or GBP or EUR. :rofl:

Precious metals like gold and silver remain a safe investment haven for investors and business owners due to the stable growth in their market. In particular, gold and silver jewelry manufacturers are not the only ones making huge profits due to the high demand for their products.