Is Gold Better Than Stock Market

Gold mining stocks have the potential to offer more growth compared to just gold.

Is gold better than stock market. To be clear as to your overall strategy regarding gold mining stocks vs physical gold you must first know your overall investment objectives. The reality is again going back to that 30 or 40 year timeline there are periodic crashes in the stock market. Gold is considered by investors to be one of the safest investments recovering its value quickly through economic downturns.

In many cases of a typical stock market bull run it makes sense to focus more on stocks instead of precious metals. For these reasons it is more representative of the us stock market than the dow jones. While there is certainly a place in any portfolio for traditional stocks the above factors don t appear to be close to working themselves out so we see gold and silver as a smarter and safer play than the stock market at the present date.

Its price often tracks in opposition to stock market or economic swings. The gold market is highly liquid and there are a number of ways in which investors can gain exposure to this precious metal including holding physical gold i e gold coins and bars and. If a company says business will be slow next month it would make sense as to why its stock price might fall.

You ll avoid the headaches that come with storing and. Although no gold stock investing is 100 percent foolproof backing a successful mining company in the precious metals space can alleviate some of the stress of a down stock market when you keep in. When investor confidence is shattered gold prices often climb as nervous investors look for a safe place to put cash pulled out of the market.

The other obvious advantage of investing in stocks as opposed to gold is that with predictable earnings come rational stock price movements. If a stock moves it generally is for an explainable or rational reason up or down. What separates winners from losers is that winners hang on when there is a stock market crash and when you invest significant chunks of your investment portfolio in gold you can afford to wait out the market.