Is Gold A Good Investment? financial news

by QWebkmnkbcWEEr

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.”

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.

“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.

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:


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

You may also like


Patanjal Vyas 26/09/2021 - 11:02 Chiều

There's lingering demand of jewelry only because gold once represented wealth & status.

Emmanuel Collado 26/09/2021 - 11:02 Chiều

Bitcoin…Nuff said.

James Brock 26/09/2021 - 11:02 Chiều

My first car I bought from musk was through investment and real estate deals

rational mind 26/09/2021 - 11:02 Chiều

Physical silver .

Althea Mullen 26/09/2021 - 11:02 Chiều

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.

Helen Mcgavin 26/09/2021 - 11:02 Chiều


Alparslan Korkmaz 26/09/2021 - 11:02 Chiều

Nice video.

Zin Tun 26/09/2021 - 11:02 Chiều

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.

Ben 26/09/2021 - 11:02 Chiều

If you invested $10,000 in gold 10 years ago right now you would have $10,000. 0% rise 0% drop

You KnowNothing 26/09/2021 - 11:02 Chiều

Main stream media, trying to scare the masses out of buying it.

Jack King 26/09/2021 - 11:02 Chiều

Gold finger…

Rachelle Turner 26/09/2021 - 11:02 Chiều

>>>>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..

STAR LD 26/09/2021 - 11:02 Chiều

I don't understand a thing in this video.

Harvey Post 26/09/2021 - 11:02 Chiều

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..

thailandsnippets 26/09/2021 - 11:02 Chiều

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.

Godzilla Mothra 26/09/2021 - 11:02 Chiều

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.

Avrab Hakimi 26/09/2021 - 11:02 Chiều

I have about 5% of my portfolio in uranium stock any advice on any other stock that I can grow my $300k capital to a million dollars?

Inigo Bantok 26/09/2021 - 11:02 Chiều

Gold is the asset without the liability and without them, the modern fixed currencies would collapse

Pavan jalla 26/09/2021 - 11:02 Chiều

Talk to indians to know more about gold

TechRally 26/09/2021 - 11:02 Chiều


ionemall 26/09/2021 - 11:02 Chiều

Just do the opposite. Go for Gold!

BLUE SKY 26/09/2021 - 11:02 Chiều

You have no contribution to the world, you are just a speculator, elon and Bezos are much greater than you

BLUE SKY 26/09/2021 - 11:02 Chiều

Warren Buffett too old ,you are useless

Berry 26/09/2021 - 11:02 Chiều

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

Nicholas Simmons 26/09/2021 - 11:02 Chiều



Leave a Comment