Is There a Better Investment Than Gold?
Gold has long been a go-to investment asset for portfolios due to its appreciation potential and protection against inflation. Although cryptocurrencies such as Bitcoin are becoming more trendy, gold’s quadruple return over 50 years is unmatched by any alternative investment vehicle.
Gold doesn’t generate income and may be more costly than stocks; therefore, if you are seeking alternatives, SmartAsset can connect you with trusted financial advisors who will assist in making the best choice for you.
Gold can provide an effective hedge against inflation. Before purchasing, however, investors must carefully consider all four key drivers: price volatility; opportunity costs; storage needs and logistical complexities.
Staying up late watching cable TV, you are bound to hear arguments for investing in gold: geopolitical risk, cyberattacks from rouge states, potential collapse of global banking system and rising commodity demand from emerging economies are just a few reasons for buying the yellow metal; most infomercials also pitch it as an inflation hedge.
But while gold may have an image for holding its value during periods of rising prices, its track record can be highly inconsistent. A more effective and consistent way of protecting against inflation would be Treasury Inflation Protected Securities, or TIPS. A TIPS allocation can help mitigate inflation risk while offering real rate of return – speak to your financial professional about adding it as part of your portfolio; its low correlation to stocks makes them an excellent diversifier.
Gold has long been considered an investment safe haven. When economic uncertainty strikes, investors often turn to buying physical gold bullion as an inflation hedge that maintains value during recessions.
However, stocks offer regular returns that you can reinvest back into the company to maximize future growth. Stocks provide investors with dividends or profit-sharing payments which they can reinvest back into the company for additional expansion.
Over time, stocks have generally outshone gold over longer time horizons; however, on shorter-term horizons gold may outperform stocks.
Diversifying your portfolio with both gold and stocks is an excellent way to diversify it, but you might need some assistance from a financial advisor in deciding the appropriate allocations of assets between these assets. SmartAsset’s free tool connects you with pre-vetted advisors serving your area who offer no cost consultation interviews to determine whether they would be an appropriate match. Start searching now.
Real estate provides both stable income and tax advantages. Furthermore, its lower volatility makes it a sound long-term wealth creation strategy.
Furthermore, land in locations that are economically vibrant can appreciate in value over time – making it an attractive alternative to gold as an investment vehicle.
Jason Hartman of the Creating Wealth Show mentions in episode 168 that gold should not be seen as an investment; rather it acts like insurance as an store of value.
According to American perceptions, real estate investment is generally considered superior. Real estate can be easily liquidated if needed while gold cannot. As such, diversifying your portfolio with both gold and real estate investments may help ensure its survival through difficult economic periods.
Electric Vehicle Metals
As more people embrace electric vehicles, precious metals like lithium, cobalt and nickel will continue to play an essential role. They are essential in producing batteries for these cars as well as wiring and electronics – demand will only continue to increase with increasing adoption of this revolution.
Electric vehicle charging infrastructure also relies on various metals. A level 3 charger for instance requires housing, switch and fuses, control and operating system components as well as electricity meter components made out of various metals including aluminum, steel and copper – this investment trend should bolster market growth during this forecast period.
Asia Pacific held the highest revenue share in 2021 and is projected to experience significant growth during this forecast period, due to increasing efforts made by governments in this region to foster electric vehicle adoption.
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