eli5: Why is investing in Gold considered so secure?
In: 4
It’s kinda not imho, and I think the people who tell you so might be overblowing its stability, but really, almost every type of investment is not 100% secure so it’s still got advantages worth noting.
The idea behind **gold** is, it has value in itself. There’s always been market value for it, and now there’s also use and value for electronics and modern applications, so if USD or Euros suddenly tanked or inflated heavily, you’d still likely have a similar “value” of $2000-worth of gold purchased x years ago as opposed to $2000 that just took a massive hit to value.
Fiat currency has no value in itself, it’s only valuable because people expect it to be (USD, Euro, etc). Gold has value in itself, but is still subject to market stuff and supply/demand/policy. I mean, diamonds are also sometimes invested in, despite their value being largely artifical.
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