Gold is commonly thought of as a 'dumb' investment, but this isn't entirely true! if Gold is a dumb investment . If you look at the long-term performance of gold, it's clear that it has been an excellent hedge against inflation and currency devaluation. For instance, over the past two decades or so, gold has realized an average annual return of approximately 10 percent. (This compares favorably to the S&P 500's average annual return of about 6 percent during the same time period). Additionally, gold is not subject to the whims of political forces like stock markets are.
However, there are some drawbacks to investing in gold. Firstly, it is illiquid - meaning that if you need cash quickly you won't be able to divest your holdings easily. Secondly, its value fluctuates wildly depending on global events and economic conditions. And thirdly, storage costs can be high for those who choose to store their physical gold securely.
Still though, despite these downsides there are plenty of reasons why one might consider investing in gold - particularly if they're looking for a way to diversify their portfolio away from riskier assets such as stocks and bonds. Gold also provides an opportunity to gain exposure to a different asset class than many other investments do not offer. Furthermore, it can provide some protection against volatility in currencies and other financial assets due to its low correlation with other asset classes.
All things considered then; while it may seem like a 'dumb' investment on the surface - investing in gold definitely has its benefits! In fact; when done properly; it can even end up being one of your smartest moves yet! Therefore; if you’re willing put in the effort required and manage your expectations appropriately; investing in gold could prove worthwhile after all!
