It seems that Costco is selling gold at pretty much market price. As a small investor, that is a good deal.
That said, physical gold is a poor investment for most people. You can invest in gold other ways without taking physical possession. This is often available in smaller quantities as well ( less than an ounce ) which makes it more accessible. It can be easily sold again at any time for the market price.
Owning physical gold is risky ( it can be lost or stolen ) or expensive ( you have to pay to keep it secure ). It is also somewhat illiquid which means that you are unlikely to get what you think it is worth when you sell.
When you buy physical gold, you own a hunk of shiny metal. You actually have it ( good and bad ). If you buy a gold derivative, you have a piece of paper or computer entry that says you are entitled to the financial value of gold stored somewhere else—you may not even know where.
In today’s world, the computer entry is less expensive, more convenient, more secure, and more liquid.
So, why buy physical gold?
Honestly, other than the emotional or novelty value, the only real benefit of physical gold is if you believe today’s world may disappear or radically alter. If you believe computer systems or financial markets are likely to collapse, the a computer entry is not worth much. If you believe that the rule of law may fail, the contractual obligation of a company to pay you is not with much. If you believe the government may seize your assets, having them under the control of a government controlled institution is a risk. Any or all of the above could happen if the government collapses.
If you think you may need to flee the country before the banks open, concentrated wealth that you can fit in your pocket could come in very handy.
The classic thesis for gold ownership is that it is an alternative to cash for storing wealth and that, unlike government currency, inflation does not destroy its value over time. The truth of this is complicated.
So, are precious metals as an asset class a good investment? I am not going to give financial advice but gold adds diversification to a portfolio and having to a few percent may be valuable.
Does it make sense to buy physical gold from Costco? That is a totally different question.
Regarding the societal collapse point, I really doubt that gold would be much in that scenario unless you can escape somewhere where things are relatively “normal”, in a genuine survival situation, bread is worth more than gold
It seems that Costco is selling gold at pretty much market price. As a small investor, that is a good deal.
That said, physical gold is a poor investment for most people. You can invest in gold other ways without taking physical possession. This is often available in smaller quantities as well ( less than an ounce ) which makes it more accessible. It can be easily sold again at any time for the market price.
Owning physical gold is risky ( it can be lost or stolen ) or expensive ( you have to pay to keep it secure ). It is also somewhat illiquid which means that you are unlikely to get what you think it is worth when you sell.
When you buy physical gold, you own a hunk of shiny metal. You actually have it ( good and bad ). If you buy a gold derivative, you have a piece of paper or computer entry that says you are entitled to the financial value of gold stored somewhere else—you may not even know where.
In today’s world, the computer entry is less expensive, more convenient, more secure, and more liquid.
So, why buy physical gold?
Honestly, other than the emotional or novelty value, the only real benefit of physical gold is if you believe today’s world may disappear or radically alter. If you believe computer systems or financial markets are likely to collapse, the a computer entry is not worth much. If you believe that the rule of law may fail, the contractual obligation of a company to pay you is not with much. If you believe the government may seize your assets, having them under the control of a government controlled institution is a risk. Any or all of the above could happen if the government collapses.
If you think you may need to flee the country before the banks open, concentrated wealth that you can fit in your pocket could come in very handy.
The classic thesis for gold ownership is that it is an alternative to cash for storing wealth and that, unlike government currency, inflation does not destroy its value over time. The truth of this is complicated.
So, are precious metals as an asset class a good investment? I am not going to give financial advice but gold adds diversification to a portfolio and having to a few percent may be valuable.
Does it make sense to buy physical gold from Costco? That is a totally different question.
Regarding the societal collapse point, I really doubt that gold would be much in that scenario unless you can escape somewhere where things are relatively “normal”, in a genuine survival situation, bread is worth more than gold
Cant eat/smoke/drink gold. Spices, food, booze, electricity and the knowledge to produce those things are where the “money” is.
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