“Gold, silver and copper are safer long-term investments than stocks.” Do you agree/disagree? Why?
November 17, 2010 by
Filed under Silver Investment FAQ
I added “Why?” because there are some jokers around here who delight in answering “yes” or “no” with no further explanation. You know who you are. š
Gold, silver and copper are defensive stocks. Now that the market and other world markets are taking a beating they are running to these investments.
If you can think back to when Clinton was in office and the market was doing quite well. Gold and other precious metals were at a low.
So that is why it is important to properly diversify, and allocate your portfolio.
Here is the difference.
Allocating would be placing monies in large cap stocks. Diversifying would be when you are using Large cap growth, value and others.
When bond markets are doing well the stock markets aren’t, which is why you should put some monies into fixed income debt instruments.
So all in all I would disagree with Gold, Silver and copper being safer long-term investments than a properly allocated and diversified stock/bond portfolio.
What is your definition of “safe?”
(A good adviser is going to tailor his advice to the needs and personality of his client. Can’t do that if I don’t know what you are talking about)
Gold, silver and copper are commodities and yes it is a safer investment than stocks but I don’t think it’s smarter. If you invest in a company (buy stock), the stock price could drop and you could loose money.
With gold, it is going to have value pretty much no matter what. Having shares in Enron isn’t going to do you any good.
So Gold is safer than stocks but the upside potential for stocks is better in my opinion and like the previous answers said a properly diversified portfolio will give you a better return over time and also be safe.
If there is a huge global war and the financial markets fail, gold will still have value where stocks may not, but how likely is that to happen?
Yes safer. Companies can go bankrupt thus their stocks become worthless. Gold and Silver should always be worth something. I understand this is a long-term investment question. Still, growth is important. Now is not the time to buy Gold or Silver as they are in a down trend.