Skip to content
Home » Is Gold A Good Investment? financial news

Is Gold A Good Investment? financial news



Gold is one of the largest financial assets in the world with an average daily trading volume of $183 billion, and its value has seen explosive growth in recent years.

At the start of 2000, gold was priced at just $460 per ounce when adjusted for inflation. By August 2021, that number had ballooned to roughly $1,815 per ounce.

But not all investors are in love with gold. Warren Buffett has spoken out numerous times on his doubts, calling it an asset with “no utility.”

“It doesn’t produce anything and that’s why from a long-term perspective, it’s a hard asset to invest in,” Odyssey Capital Advisors chief investment officer Jason Snipe said. “It’s prudent portfolio management to have maybe a small allocation there but this is not an asset that you want to be heavily entrenched into if you’re looking for long-term yield.”

See also  How to become a Financial Planner in 2021 (Career Advice from a Chartered Financial Planner) financial consultant

Since 2011, the S&P 500 has returned more than 16% on an annualized basis. The annualized return for the 10-year Treasury note sat at just over 2% in that time period. Gold, meanwhile, has fallen slightly over the past 10 years.

“Early on, you see strong performance, strong return or yield from commodities such as gold. Generally, as we move into a different cycle, gold is not as great a performer as we move into a normalized environment,” Snipe said.

Whether gold is an effective hedge against market volatility is also widely debated among experts.

“Gold is not necessarily a perfect hedge against inflation but it can be a strategic hedge against inflation,” according to Suki Cooper, executive director of precious metals research at Standard Chartered Bank.

See also  Evergrande Debt Crisis is Lehman Brothers moment for Chinese Economy? UPSC GS Paper 3 Global Economy a financial history of the world

“Various studies have shown us that if gold is held for 12 to 18 months before inflation takes higher and then it’s held for an additional 12 to 18 months while inflation moves higher, it can be a good inflation hedge,” Cooper said. “But if it’s just bought for a short period, let’s say a month, it may not prove to be an effective inflation hedge.”

» Subscribe to CNBC:
» Subscribe to CNBC TV:
» Subscribe to CNBC Classic:

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

See also  Sensitivity Analysis for Financial Modeling financial analysis of a company

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:

#CNBC

Is Gold A Good Investment? .

Images related to the topic financial news

Is Gold A Good Investment?

Is Gold A Good Investment?

Search related to the topic Is Gold A Good Investment?

#Gold #Good #Investment
Is Gold A Good Investment?
financial news
See all the latest ways to make money online: See more here
See all the latest ways to make money online: See more here

25 thoughts on “Is Gold A Good Investment? financial news”

  1. in all, the market has dropped 9.8 per cent over the last 24 hours, according to the tracking site CoinMarketCap. Activity was up, presumably as people responded to the crash, with 44 per cent more trading than the previous day. The price of bitcoin has plunged in its latest dramatic drop. It has lost almost 10 per cent from its value over the last 24 hours. So choosing the right strategy is very important when diving into Crypto, in other words it is important to have a plan! Bitcoin trading is a lucrative opportunity as it leverages the market volatility, I have been able to make 17 BTC in just 3 months of trading all thanks to exclusive signals from Daren Waters, a renowned trader that is way ahead of his time. tєlєɠгคm @Darenwaters.

  2. Take away points
    1) Gold will never be zero, never be completely replaced by anything and it has it's place in financial role. Why would central bank hold them if they are not?
    2) Whether Gold out perform other assets or not depend on the period that you choose.
    3) Gold is a long term inflationary hedge and not short term inflationary hedge. Gold tend to front run inflation (recently value spike in 2020 before inflation kick in 2021).
    4) Gold is an hard asset and can hedge against deflation especially when we have financial system based on fiat currency. It is because, during deflationary, for short term gold price go down due to liquidity issue but because almost always central banks pump the system back up and Gold will rise up.

  3. >>>>A great deal of people in this tradings market now having continuous loose due to mistaken system and information Bobby mickael make me over 7 Btc in a months. Is absolute game changer for me, his crypto sessions were delivered with knowledge and enthusiasm in a relaxed, friendly manner,the content was informative, concise and extremely educational..

  4. Was it cnbc said mr.buffet investing gold first time.i thought my experience with silver no not a good idea..if recall gold about $1850 oz..hasn't gone up much more but mostly down $1700 .I guess BAC at $1850..

  5. Note the dates chosen for comparing Gold's performance with the S & P, and the 10 year Treasury Note have been cherry-picked by CNBC. They have chosen the last peak of Golds price as its starting point to get the least favourable performance for Gold and compared it with the Share Market after the 2008 Financial Crisis to get the maximum return from the Share Market. It would be far more honest to choose from say 2000 (giving a more longterm performance figure), because that would show that Gold has performed substantially better than the Share market over a much longer period. Clearly the CNBC dont want to tell you the truth and you need to research the truth for yourself.

  6. Western investors tend to underestimate gold. In the east, the trust on gold is absolute, the muslims, indians and chinese have great trust on gold, that is about half of humanity. Sure it won't give you a good return in ordinary time. But it is probably the most stable anchor in stormy days, the kind that we will probably face soon.

  7. Why do central Banks all load up on Gold now, they know something we don’t, you have to look at long term and you not always at profit now

Leave a Reply

Your email address will not be published.