2 Biggest Myths About Gold: Gold Buyers In San Francisco
It is a fact that Gold has been the investment phenomenon of the past decade. Like most investment opportunities, sometimes you make profit and sometimes you do not--as an investor. But the fact remains that it is still undervalued and there are many reasons for this.
However, this article will not focus on the debate on whether it is undervalued or not. Also, it is not about the logical reasons why it is undervalued: as a proponent to the motion that it is undervalued.
This article will be focused on some of the biggest myths that plaque the buying and selling of Gold: commerce for Gold buyers in San Francisco or elsewhere. This is very important because some investors are adversely affected by these myths especially those who aren't professionals. Hopefully, this would help them to make smarter decisions as they invest in the solid mineral or precious metal as it is called.
So, let's discuss 2 biggest myths about Gold that might get Gold buyers in San Francisco interested.
1) Gold is a bad investment. There are some stakeholders or investors that think that it is a bad investment and should be put at the bottom of the portfolio or should be avoided. The reason for this is because the return on investment in Gold have been poor when compared to the major stock indices. So, the ROI is not impressive and fiscal cash is better placed on somewhere else so that when liquidated, it would yield higher returns.
Before you give this some serious taught, you might want to give this some serious consideration first: Performance of different asset classes varies. There are significant changes from cycle to cycle. All professional Gold buyers in San Francisco or elsewhere make logical or reasonable comparison based on this.
Remember that they do not experienced any significant losses during the subsequent bear market: those who bought it in 1979 when it was at its average price ($306 per Ounce) when it peaked in 1980 at $850 per Ounce.
The fact is that studies that made comparison between Gold and equities that date back to the 1970s failed to mention that the price of Gold was fixed until 1971. As you may already know and could attest to it that the precious metal was not an investment prior to that time; It was money.
And if you look at stocks listed in the 1700s, virtually all of those stocks is not existing. How fascinating is that really?! And history shows that poor performers and bankrupt companies are removed which boost the return of major indices, e.g., Dow, and high performers. Ten of thirty enterprises have been replaced.
2) It is an investment opportunity that is too risky. The word 'risky' is ambiguous as it means different things to different people. It would be wrong to generalize it. For asset managers: it is the inability to meet its benchmark. For pension fund: it is the inability to meet its liabilities.
However, if it means the underperformance of investment when compared to expectations or loss of capital; you might want to consider this: there are different types of risk. Liquidity risk, interest rate risk, political risk, systemic risk, inflation risk, market risk, default risk, and currency risk. Many do not apply as Gold Bullion is concern; while all apply to financial assets. In a nutshell, it is not too risky or that risky as many perceive it to be.
Gold Buyers San Francisco