Gold vs. Stocks
An Ideal Way to Mitigate Risk
Every sound investment strategy should include limited high-risk growth investments offset by less vulnerable and easily liquid holdings. As this risk pyramid demonstrates, gold is safer and more liquid than even cash, providing a stable foundation for building a well-balanced portfolio.
Gold vs Stocks Since 2001
This conversative investment offers the highest short-term returns. One-ounce gold bullion coins minted by the U.S Mint move dollar-for-dollar with the spot gold price. Investment grade gold, also known as "bullion with muscle" offers the same benefits as bullion but with higher profit potential.
This graph shows a 2001 investment in gold bullion had grown XXX% as of 12/31/14. That same investment in S&P 500 stocks grew only XX% over the same period of time.
Other Gold Securities
Mining shares are stocks that let you invest in gold indirectly through partial ownership in the companies that mine this precious metal. They hold no inherent value.
Exchange-traded funds (ETFs) perform based on gold market value. They are structured like an index fund but traded like a stock on an exchange, again holding no inherent value.
" If you can't hold it, you don't own it. To capitalize fully on the portfolio diversification strengths of alternative investments, make sure your assets are tangible. "
Gold, ETFs and Mining Shares: A Comparison
Gold is a physical asset, meaning you own something you can hold that has inherent value. In contrast, stocks are equities that signify partial ownership in the issuing company, with no inherent value.
Gold is also among the most negatively correlated assets to stocks -when stocks go down, gold prices go up.
So, after all that, the only that we have to agree is that the physical gold investing is the best choice.