eli5: Why is investing in Gold considered so secure?
In: 4
Two things: gold is as old as shit so people eventually came to a mutual agreement that its valuable and its tradable and its convertible, which is the most important aspect of it. Secondly, Its considered secure because material wise it doesnt eradicate as easy as other “things” and you can also carry it pretty easily. 200gr gold can help you sustain life anywhere on earth for quite a while if you were to smuggle it with you while fleeing. On the other hand, other investments such as real estate can literally blow up and disappear, currency can lose value, gems and diamonds and stuff are not really worth much due to minimal real world useful applications and are difficult to assess originality. Monetary markets, commodity markets etc are just markets where you actually trade worthless papers so i dont even count them… practically though, security is subjective and its not considered a great investment – it doesn’t increase in volume or quantity over time.
Latest Answers