Gold is good at facing the biggest Social and Economic upheaval of all
It’s not. It’s still a commodity (and not a particularly useful one). Again, if you pick any given market crash and you invest in a telecom or energy giant at the outset, you’re going to outperform gold as a commodity over the intervening years. Gold only pays out when you can time the market and sell during a surge in demand. Outside of those boom cycles, the commodity trades flat or declining.
It is, at best, a short cycle hedge against sudden drops in price. And at that point, your play is to sell the gold and buy into an undervalued equity.
Well, as I explained for me it has been pretty good at just passivelly avoiding the consequences of nation-sized bullshit like Brexit without me doing anything at all.
At the risk of repeating myself, my whole point is that it’s good as a passive investment, not that it can’t easilly be beaten by active trade strategies by somebody with good market knowledge (who is entering and exiting positions and can spot those “undervalued equities”)
Hence my expectation that for the ignorant investor or those who can’t be arsed to follow the markets, it’s probably a suitable passive zero-knowledge-needed way to bypass the consequences of whatever shit the US seems to be diving into as well as on a grander scale the transition from America as the top power to China as the top power, all things with a scope of at least one or two decades.
It’s not. It’s still a commodity (and not a particularly useful one). Again, if you pick any given market crash and you invest in a telecom or energy giant at the outset, you’re going to outperform gold as a commodity over the intervening years. Gold only pays out when you can time the market and sell during a surge in demand. Outside of those boom cycles, the commodity trades flat or declining.
It is, at best, a short cycle hedge against sudden drops in price. And at that point, your play is to sell the gold and buy into an undervalued equity.
:-|
Well, as I explained for me it has been pretty good at just passivelly avoiding the consequences of nation-sized bullshit like Brexit without me doing anything at all.
At the risk of repeating myself, my whole point is that it’s good as a passive investment, not that it can’t easilly be beaten by active trade strategies by somebody with good market knowledge (who is entering and exiting positions and can spot those “undervalued equities”)
Hence my expectation that for the ignorant investor or those who can’t be arsed to follow the markets, it’s probably a suitable passive zero-knowledge-needed way to bypass the consequences of whatever shit the US seems to be diving into as well as on a grander scale the transition from America as the top power to China as the top power, all things with a scope of at least one or two decades.