Is Investing in Gold Better Than Cash?

When it comes to storing wealth, gold could be a much more efficient option than cash. With interest rates remaining low, the money you have in the bank is not generating much of a return. When inflation is taken into account, the value of your cash may even be decreasing. Gold, on the other hand, has a long-term history of stability.

One of the advantages of gold is that it is universally accepted and does not need to be converted to a local currency at a cost. Additionally, there is potential for capital gains with gold as its prices have historically performed well. However, physical gold can be at risk of theft, so it is important to ensure that it is stored securely, which may involve third-party storage. Experts such as Ray Dalio suggest that 10% of your portfolio should be allocated to precious metals such as gold and silver for diversification purposes.

Given the current high national debt, what do you think cash will do against gold in the next 5, 10 or 20 years? Gold and silver can be seen as financial insurance against inflation and can provide the possibility of setting a specific rate. For example, gold has outperformed the S&P 500 index since 2000 with an increase of 514% compared to 174%, at the time of writing this article. Investors who want exposure to gold but remain in the stock market can invest in stocks of precious metal mining companies.