- ORIGINAL NEWS
Don’t be enticed by the gold rally, expert says: Investors ‘buy gold and hope it doesn’t go up’
- SUMMARY
Gold’s value tends to rise when the world and other investments are struggling.
While it can be seen as a safe investment during turbulent times, it’s important to invest cautiously.
Historically, gold has not provided substantial returns, especially compared to other assets like stocks and bonds.
Experts advise viewing gold like home insurance: while it may perform well in a crisis, it typically comes with low earnings during less turbulent times.
Consider investing a small portion of your portfolio in gold (less than 5%) as a precaution for financial emergencies, but keep in mind that it may not significantly enhance your overall returns.
- NEWS SENTIMENT CHECK
- Overall sentiment:
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Negative
“The yellow metal does well when other assets — and the world — are in trouble.”
“As a result, prospective buyers should proceed with caution, experts say.”
“Be prepared to root against your investment, said William Bernstein, author of “The Four Pillars of Investing.””
“Despite brief rallies, the average annual returns for gold far lag stocks and bonds, according to experts.”