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Investment in gold, is is beneficial ?

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  • Investment in gold, is is beneficial ?

    From past few years, there is tremendous increase in gold rate. It is continuously on demand. There is daily fluctuations in gold price. So, I think investment in Gold is better option saving and earning better returns.

    You can easily purchase gold inform of gold coin, biscuit, etc.

  • #2
    No. It's not beneficial.

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    • #3
      Gold is an investment like anything else. It is not immune to big dips in price.

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      • #4
        I believe that the number for precious metals as a percentage of the portfolio is like 5-10%.

        Should it be a part of your portfolio? Yes.
        Should it be the majority of your portfolio? No.

        I was able to find this article by a gold fund manager -


        And a few other interesting articles -
        Random Glenings: What Role Should Gold Play in A Diversified Portfolio?
        Gold: Now That's a Track Record - Doug French - Mises Daily
        Gold: For Investment Policy, Yes; For National Policy, No

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        • #5
          I agree with "jpg"; 5-10%, no more. Gold is getting a lot of attention in the media lately because of its recent run-up. And, when any investment starts getting that much attention - look for the big fall in the near future. If the economy improves (and it will), gold will cease to be the media darling that it is right now. Consider silver if you want to dabble in precious metals - a little cheaper and I believe has followed a similar trajectory that gold has.

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          • #6
            agreed!

            Long-term gold is a horrbile investment. It has actually averaged less than 3% over a long term period. It fluctuates just as much as anything else, but it has had a great decade. If you know when to time it, then you can make some money. You should limit your portfolio to 10% of precious metals.

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            • #7
              Originally posted by tlscott1 View Post
              If you know when to time it, then you can make some money.
              That could be said of virtually any investment, but since NOBODY knows "when to time it", you shouldn't waste your time or money trying. You could buy gold tomorrow and the market could crash on Wednesday. There's just no way to know, especially when you are dealing with an asset that has virtually no inherent value.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

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              • #8
                Investing in gold ,is it beneficial?

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                • #9
                  Every asset class and alternative investment has great periods and not so good periods. Gold is no exception.

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                  • #10
                    I agree with you that it's a good idea...Investing is gold is such a good thing which can be profitable to you...As gold rate is increasing rapidly...You can buy jewelery,gold biscuit or other item related to gold..

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