The Difference Between Buying Gold And Investing In Shares

Everyone thinking about their future, either for themselves or their family, wants to have a strong investment plan that will hopefully grow in value over the years, cementing a happy and comfortable life in retirement or even sooner. The question is what to invest in to get the most out of the hard-earned money that you have hopefully accumulated over your career.

Many of the problems with the value of the dollar are due to frivolous things such as hearsay and conjecture. If someone in a position of monetary power says one thing, that can change the value of shares in the stock market, either sending share values plummeting or rising depending on what is being said. This is why it is important to invest wisely and keep an eye on the value of everything be it gold, stocks, land, or businesses.

Dollars and gold

If you want to buy US stocks in Australia you need to be really up-to-date on the current market trends and even this is a gamble. The value of the Australian dollar compared to the US dollar fluctuates wildly and it has done more so over the past few years due to unforeseen events. Back in 2012, the Australian dollar was worth more than the United States dollar but it is currently down to around 70 cents per US dollar.

People who invest in gold stocks tend to do so with a long-term vision in mind. The price of gold does fluctuate but in the long run, the profitable returns tend to be significant, especially if the investor is patient and willing to sit on it for a vast amount of time.

The value of investing in shares

Investing in shares can provide a cumulative wealth if the right businesses or interests are carefully studied and monitored over a long time. Fads come and go, although being able to latch on to something that may last can result in significant dividends for the investor who is willing to go the long haul. It is always a gamble either way, but you can be sure that someone who heavily invested in Google when that started is laughing all the way to the bank, so to speak. Likewise, when cryptocurrency first appeared, not much notice was taken place at first and some early investors will be regretting their decisions to sell early on, while others have made a fortune holding onto what little was invested initially.

Making the decision that’s right for you

Because gold is so valuable these days and is a tangible commodity, it is easy to want to invest in it for a long-term positive result and perhaps makes the concept of investing a tad bit easier to understand and tabulate. Stocks, on the other hand, can seem more complicated, especially when it comes down to who to invest in. Even long-term successful businesses such as Nike, Coca-Cola, Microsoft, and Apple, although industry powerhouses are always one controversy away from losing value overnight.

Technology changes all the time and no one can properly predict where a popular band will be in the next, say, 10 years. Anyone who invested in Blockbuster Video in the 90’s never expected the advent of online streaming services to become the juggernauts that they are today. So with all this in mind it is important to stay diligent, stay informed, and be confident to make an informed decision about where and what to invest your money in.