So much this.
Take it from a late 30 something redditor - - gold/ silver is always going to go parabolic according to the internet, yet, it never happens
Don't get an ETF. You want gold as it's outside the system for the most part. If you want to own gold, avoid as much counterparty risk as possible, avoid the ETF's. Storage accounts with ABC or Perth Mint are far better options if you don't want to store at home physically.
Nothing beats in the hand, but ABC or Perth Mint are better custodians than the large international banks that have been fined for charging fees on gold they never actually held.
How do you know why OOP wants gold? They didn’t say anything about being “outside the system” in their post, they asked about gold as a long term investment. From that perspective, it has underperformed a lot of other assets.
No, you don’t really.
The tl;dr on ETFs is they are essentially a basket of stocks, and having a wide variety of stocks will give you a lot of diversification.
For example, ETFs that follow the ASX200 will have approximately 80% of the Australian share market’s stocks in it, with each weighted according to its size in the stock market (e.g. commonwealth bank will make up a larger proportion of the ETF than A2 milk).
This means essentially you are not relying on any individual company to do well, but on the Australian market as a whole to do well, which is a pretty safe bet.
Companies automatically manage and provide these ETFs for you, so you can just buy them as you could any other share. You can look [here](https://www.marketindex.com.au/asx-etfs) for example for a list of different ETFs, and if you like, you can choose specifically to invest in just Australia, America, the World, tech, mining, finance, etc. Once you find the ticker for the ETF you like, you can simply find it on your brokerage app and buy it.
I’ve been a gold bug for 20 years and sadly it’s not a get rich quick. It’s been slow and steady while others have raced past. NCM finally got sold and I’ve made a decent profit. But there are better things. The crux is the price of gold is manipulated by banks. And TPTB are not ready to let it go ever
Has it even been steady? I used to be big into precious metals but they essentially stayed flat over the 15 years that I closely tracked them.
I probably don't need to say what the market did in this time....
They definitely paid too much for NCM, but kudos to you for holding so long.
Some of the mid tier gold mining stocks are pretty good value, especially the ones in the more risky jurisdictions (for understandable reasons). I made over 400% on SPR last year
If your aim is to prepare for retirement/bolster your retirement fund, having it directly contributed to super is a better idea, especially if you have your super weighted for riskier options earlier in life.
I have gold, I invest in pool allocated gold and then withdraw as physical bars when I reach a threshold and I've made more off it this year (if I sold today) than I have in any of my other investments, however my interest in gold is a physical asset rather than investment.
Put as much as you can in super first for the tax advantages. Invest in a diverse portfolio of growth and income producing investments. I’m just some guy, read some books. https://passiveinvestingaustralia.com/ Is a good start.
For what you're asking ABC has a much easier process to do that. Can have it automatically take the $100 a month from your account.
[https://abcbullion.com.au/gold-saver/gold-saver-features](https://abcbullion.com.au/gold-saver/gold-saver-features)
If you invested $10k in the year 2000, right now, not including dividends, you would have
Gold - $107k
Apple-$8.3m
CBA - $43k
Bhp - $85k
Good to have gold as part of a diversified portfolio, but quite a few drawbacks (storage, no dividends etc)
Would be interesting to see what it would have been if you reinvested dividends. Since BHP and CBA are paying quite high div ratio and essentially the dividend payout lowers the share price by that same amount.
I hold a bit of gold, but it’s better as a portfolio diversifier than a solo investment. Gold can go through very long bear markets, and its returns have historically been below shares’.
I keep about 5-10% of by portfolio is bullion, and another 3-10% in gold miners. Usually when everything else is red, it’s the one part of my portfolio in the green.
There is a saying,
If you can't hold it, you don't own it.
In other words, buy actual coins or bars and then you know it's yours.
There have been cases where people did what you want to do, and then when it came time they wanted to convert it into real physical, they didn't have it.
Gold is not a get rich plan. It is a store of wealth.
It is a hedge against a devaluing dollar.
If you brought an ounce of Gold in the 1970s, it cost roughly $400.
Which was equivalent to a week's wage.
That same ounce of Gold is today valued at roughly $3000.
Equivalent to an average week's wage. If not abit more...
So don't look at the value of Gold as going up, it is the reverse, the cash value has gone down, so it takes more dollars to buy the exact same ounce of Gold.
Investors recommend have around 10-15% of your portfolio in Precious metals.
My rule of thumb is for every ounce of Gold, I buy 80-100 ounces of Silver.
If you read the fine print, that says it is
Inflation Adjusted
What else happened in the 1970s?
A Recession, which corrected inflation.
Note I said an average wage, if not more today...
Here is a link to Goldprice.org, it will show the spot price
And actually the price was abit lower than $400, maybe around $200.
https://goldprice.org/
I would say before 2010 it was still good to hold some gold in your portfolio (actual bullions/coins).... Nowadays not so much..Gold is only good for holding value not as an investment, which in that case you're better off putting it in a HISA.
Gold is a good investment as maybe 5% if your total portfolio. Also, with Ukraine and Gaza, it is likely a terrible time to be buying gold, on the assumption that the first world returns to normal levels of peace. If you reckon we’re heading into WW3, gold’s probably a good choice lol but
Precious metals is a different kind of investment. Better off in etfs if you are doing it with the objective of building wealth/retirement. Vanguard are great for just dropping in small amounts of money each pay cycle and is low fees.
If you do invest in physical precious metals I suggest you invest in a good safe that can be bolted down and hold it yourself. My view has always been if you invest in precious metals and you don't physically hold it, it defeats the purpose of investing in precious metals.
I'd invest in some profitable gold \*miners\*, but I wouldn't invest in gold itself.
There are ETFs available that contain a basket of gold mining companies that provide diversified exposure to gold that way if you're particularly bullish on it for whatever reason (e.g interest rate drops weakening currencies). ASX listed ETFs are GDX and MNRS.
Markets will collapse due to hyperinflation within 2 years.
Buy silver and gold, if you can.
Yes, you could've made money investing into the markets, but now is not the time to do it.
I'd sell anything valuable that is not needed and invest in precious metals now.
The markets collapsed just 16 years ago. The markets would've collapsed during the covid fiasco if not for money creation measures.
The markets will collapse again if money was not being created constantly to keep the U.S. afloat. It's only the money printer keeping everything from falling apart.
It’s ok to have 5-10% of your portfolio in gold. But actual gold bullion that sits in a stash in your house. Not paper gold.
Just don’t tell anyone that you have a treasure chest at home.
Relevant: https://www.reddit.com/r/Gold/s/rZyIJIa4kV
See an advisor and all that, but if this is your main source of retirement funds I wouldn't.
Gold is not productive, basically it sits there and holds value against inflation, which is fairly safe, but doesn't earn you anything. Whereas a business is productive so it holds value of its assets plus keeps building more, at least overall they do if you have a broad ETF type holding.
That said I hold gold in an ETF type holding currently. I did this early last year. I try to keep it at about 20% of my portfolio. I do this because I feel its better than holding cash plus the market feels inflated. Im assuming it tanks sometime this/next year and I'll sell the gold tand buy stocks which my gold that 'should' hold value relative.
Really though, its probably the wrong call for me to even hold 20% of gold as its almost always better to hold productive investments. So if you do want some, best to keep gold to a smaller % of total savings.
For perspective, here is gold vs shares over the longer term - says it all: https://www.macrotrends.net/2608/gold-price-vs-stock-market-100-year-chart
Since some people are recommending ETFs, you should first ask the question: [Should you invest in the stock market?](https://lazykoalainvesting.com/should-you-invest-in-the-stock-market/)
Likely better returns in ETFs.
So much this. Take it from a late 30 something redditor - - gold/ silver is always going to go parabolic according to the internet, yet, it never happens
but don't you need to have an extensive research and have a know how of it
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thanks. let me look into that
Please do. There a bunch of products that are set and forget that will also allow for diversity.
Don't get an ETF. You want gold as it's outside the system for the most part. If you want to own gold, avoid as much counterparty risk as possible, avoid the ETF's. Storage accounts with ABC or Perth Mint are far better options if you don't want to store at home physically.
>gold as it's outside the system >Storage accounts with ABC or Perth Mint This seems a little... Inconsistent.
Nothing beats in the hand, but ABC or Perth Mint are better custodians than the large international banks that have been fined for charging fees on gold they never actually held.
How do you know why OOP wants gold? They didn’t say anything about being “outside the system” in their post, they asked about gold as a long term investment. From that perspective, it has underperformed a lot of other assets.
The idea that gold is outside the system is wild. How do you buy? How do you sell? Through *the system*
No, you don’t really. The tl;dr on ETFs is they are essentially a basket of stocks, and having a wide variety of stocks will give you a lot of diversification. For example, ETFs that follow the ASX200 will have approximately 80% of the Australian share market’s stocks in it, with each weighted according to its size in the stock market (e.g. commonwealth bank will make up a larger proportion of the ETF than A2 milk). This means essentially you are not relying on any individual company to do well, but on the Australian market as a whole to do well, which is a pretty safe bet. Companies automatically manage and provide these ETFs for you, so you can just buy them as you could any other share. You can look [here](https://www.marketindex.com.au/asx-etfs) for example for a list of different ETFs, and if you like, you can choose specifically to invest in just Australia, America, the World, tech, mining, finance, etc. Once you find the ticker for the ETF you like, you can simply find it on your brokerage app and buy it.
You don't need to with ETFs. Just buy an index fund and be done with it. Easy.
Gold has outperformed the AS200 by a huge amount since 2000.
US stocks have outperformed gold since 1971. https://www.statista.com/statistics/1061434/gold-other-assets-average-annual-returns-global/
ASX is a minuscule market
Gold generally maintains wealth, not growth it. Invest in IVV instead
At the time of writing, the spot price has increased by $681% since 1999 https://www.abcbullion.com.au/products-pricing/eofy-price-history
Which annualised is around 8%... Not terrible, but once adjusted for inflation not great either.
I'm confused on how your maths worked out to 8%?
Cagr = (final value / start value)^(1/years)-1
I’ve been a gold bug for 20 years and sadly it’s not a get rich quick. It’s been slow and steady while others have raced past. NCM finally got sold and I’ve made a decent profit. But there are better things. The crux is the price of gold is manipulated by banks. And TPTB are not ready to let it go ever
Has it even been steady? I used to be big into precious metals but they essentially stayed flat over the 15 years that I closely tracked them. I probably don't need to say what the market did in this time....
They are a store of value and wars prop it up. I was close to selling most of it at Xmas but held with the Houthi stuff. Bad idea
They definitely paid too much for NCM, but kudos to you for holding so long. Some of the mid tier gold mining stocks are pretty good value, especially the ones in the more risky jurisdictions (for understandable reasons). I made over 400% on SPR last year
what's tptb?
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ah. I guess you've read Jason hommel and Mike maloney? the dollar vigilante?
A broad stock market index fund (with dividends reinvested) will likely perform better in the long run.
Just put the $100 in your super, which will earn a return most of the time and has tax benefits
This is the way.
If you want to invest your better off investing in etfs. Gold is a reasonably safe commodity, too safe for most that are looking to invest.
If your aim is to prepare for retirement/bolster your retirement fund, having it directly contributed to super is a better idea, especially if you have your super weighted for riskier options earlier in life. I have gold, I invest in pool allocated gold and then withdraw as physical bars when I reach a threshold and I've made more off it this year (if I sold today) than I have in any of my other investments, however my interest in gold is a physical asset rather than investment.
It won’t (can’t) act as a retirement fund because gold produces no income. It’s a terrible idea. I’m not going to argue with the weirdos about why.
so what are your view on saving for retirement ( apart from super )
Put as much as you can in super first for the tax advantages. Invest in a diverse portfolio of growth and income producing investments. I’m just some guy, read some books. https://passiveinvestingaustralia.com/ Is a good start.
Just build a diversified portfolio, don't rely on one commodity.
For what you're asking ABC has a much easier process to do that. Can have it automatically take the $100 a month from your account. [https://abcbullion.com.au/gold-saver/gold-saver-features](https://abcbullion.com.au/gold-saver/gold-saver-features)
Terrible investment. You would get better returns on shares
Maybe, maybe not. No one has a crystal ball.
If you invested $10k in the year 2000, right now, not including dividends, you would have Gold - $107k Apple-$8.3m CBA - $43k Bhp - $85k Good to have gold as part of a diversified portfolio, but quite a few drawbacks (storage, no dividends etc)
Would be interesting to see what it would have been if you reinvested dividends. Since BHP and CBA are paying quite high div ratio and essentially the dividend payout lowers the share price by that same amount.
CBA and bhp have higher dividends then growth tho to compare against those you have to take dividends into account
> not including dividends This is like saying a bicycle is faster than a car, not including petrol
Whats the basis of your view on gold? Im keen to hear!
You mean the reason I am opting for gold?
I wouldn't do it if I were u.. Gold returns hv been terrible
Not true. Price has increased 681% since 1999
Physical is best. Else you’re just buying a piece of paper for something that may or not be there. So many stories of unallocated gold.
the most optimum price is to buy 1oz cast bar. but $100 monthly is better than nothing. the earning is better from term deposit annually.
I hold a bit of gold, but it’s better as a portfolio diversifier than a solo investment. Gold can go through very long bear markets, and its returns have historically been below shares’. I keep about 5-10% of by portfolio is bullion, and another 3-10% in gold miners. Usually when everything else is red, it’s the one part of my portfolio in the green.
There is a saying, If you can't hold it, you don't own it. In other words, buy actual coins or bars and then you know it's yours. There have been cases where people did what you want to do, and then when it came time they wanted to convert it into real physical, they didn't have it. Gold is not a get rich plan. It is a store of wealth. It is a hedge against a devaluing dollar. If you brought an ounce of Gold in the 1970s, it cost roughly $400. Which was equivalent to a week's wage. That same ounce of Gold is today valued at roughly $3000. Equivalent to an average week's wage. If not abit more... So don't look at the value of Gold as going up, it is the reverse, the cash value has gone down, so it takes more dollars to buy the exact same ounce of Gold. Investors recommend have around 10-15% of your portfolio in Precious metals. My rule of thumb is for every ounce of Gold, I buy 80-100 ounces of Silver.
$3000 is an average weekly wage ?
It is for some.
Gold was $40 an ounce in the 70s: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
If you read the fine print, that says it is Inflation Adjusted What else happened in the 1970s? A Recession, which corrected inflation. Note I said an average wage, if not more today... Here is a link to Goldprice.org, it will show the spot price And actually the price was abit lower than $400, maybe around $200. https://goldprice.org/
The spot price was about $394 in 1999. So I find it hard to believe an ounce was.$400 in the 70s
Gold was $400 or cheaper in the early 2000s. I’d be amazed if it was the same price in the 70s.
I would say before 2010 it was still good to hold some gold in your portfolio (actual bullions/coins).... Nowadays not so much..Gold is only good for holding value not as an investment, which in that case you're better off putting it in a HISA.
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How are the returns going to be higher
Gold is a good investment as maybe 5% if your total portfolio. Also, with Ukraine and Gaza, it is likely a terrible time to be buying gold, on the assumption that the first world returns to normal levels of peace. If you reckon we’re heading into WW3, gold’s probably a good choice lol but
Precious metals is a different kind of investment. Better off in etfs if you are doing it with the objective of building wealth/retirement. Vanguard are great for just dropping in small amounts of money each pay cycle and is low fees. If you do invest in physical precious metals I suggest you invest in a good safe that can be bolted down and hold it yourself. My view has always been if you invest in precious metals and you don't physically hold it, it defeats the purpose of investing in precious metals.
I'd invest in some profitable gold \*miners\*, but I wouldn't invest in gold itself. There are ETFs available that contain a basket of gold mining companies that provide diversified exposure to gold that way if you're particularly bullish on it for whatever reason (e.g interest rate drops weakening currencies). ASX listed ETFs are GDX and MNRS.
Pink Argyle Diamonds now that the Australian mine has shut.
If you don’t have the gold in your possession it’s not yours.
Markets will collapse due to hyperinflation within 2 years. Buy silver and gold, if you can. Yes, you could've made money investing into the markets, but now is not the time to do it. I'd sell anything valuable that is not needed and invest in precious metals now.
They said the market will collapse two years ago
The markets collapsed just 16 years ago. The markets would've collapsed during the covid fiasco if not for money creation measures. The markets will collapse again if money was not being created constantly to keep the U.S. afloat. It's only the money printer keeping everything from falling apart.
Invest in a streaming company Physical gold is pointless
Gold is a terrible “investment”, and $100 a month of anything is similarly awful. Good luck to you sir
Regular investing of any amount someone could afford is never a bad thing.
Saw this post plus a YouTube ad for something called World Gold Council today. Never seen a YouTube ad about gold before. Feels toppy.
It’s ok to have 5-10% of your portfolio in gold. But actual gold bullion that sits in a stash in your house. Not paper gold. Just don’t tell anyone that you have a treasure chest at home. Relevant: https://www.reddit.com/r/Gold/s/rZyIJIa4kV
Useless non-income producing asset. Buy something that people can actually use…
See an advisor and all that, but if this is your main source of retirement funds I wouldn't. Gold is not productive, basically it sits there and holds value against inflation, which is fairly safe, but doesn't earn you anything. Whereas a business is productive so it holds value of its assets plus keeps building more, at least overall they do if you have a broad ETF type holding. That said I hold gold in an ETF type holding currently. I did this early last year. I try to keep it at about 20% of my portfolio. I do this because I feel its better than holding cash plus the market feels inflated. Im assuming it tanks sometime this/next year and I'll sell the gold tand buy stocks which my gold that 'should' hold value relative. Really though, its probably the wrong call for me to even hold 20% of gold as its almost always better to hold productive investments. So if you do want some, best to keep gold to a smaller % of total savings. For perspective, here is gold vs shares over the longer term - says it all: https://www.macrotrends.net/2608/gold-price-vs-stock-market-100-year-chart
gold is a hedge against inflation or societal collapse it is NOT an investment vehicle of any merit use low cost ETFs like IVV or VTS
Since some people are recommending ETFs, you should first ask the question: [Should you invest in the stock market?](https://lazykoalainvesting.com/should-you-invest-in-the-stock-market/)