Is gold a buy right now?

Gold is going up like there’s no tomorrow. All-time highs and all. Silver has exploded recently as well. Is this a buying opportunity?

I………………… really have no idea. Anybody who tells you otherwise is a liar and probably trying to sell you something.

Gold is seen as a store of value and as a safe-haven during times of economic difficulty. Things aren’t looking that great out there with rising unemployment and closure of businesses. Naturally, people flock to the shiny metal.

Gold itself doesn’t produce an income (no dividends) and doesn’t have many industrial uses. I know Warren Buffet isn’t that fond of the stuff either.

Have a look at longtermtrends.net where they compare US stocks and gold and silver over many decades. The charts will show that over the long term stocks have been a significantly better investment than gold.

I’m sure you have noticed there’s been plenty of positive news about a Covid-19 vaccine, which could improve the economic outlook. Stocks are doing really well and many tech stocks are at all-time highs (check out the Nasdaq 100). Or is it inflation that’s pushing stock prices up? Inflation doesn’t only increase your grocery bill… it can manifest in mysterious ways. 🙂

These days we have more alternatives to gold as well. Crypto looks very promising to me.

Gold is having a good run this year. However, nothing in the world of finance stays the same for long. It’s important to have an investment strategy and even more important to follow it. Don’t marry your positions!

Good luck!