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RE: What hard assets would you choose to buy?

in #finance7 years ago (edited)

Personally, I wouldn't buy any, because:

  • they pay no interest
  • generally not a hedge against inflation
  • storage costs
  • opportunity cost (could be invested in something that appreciates)

Given the listed options, gold, because:

  • lowest premium (buy/sell spread)
  • easy to buy/sell
  • capital gains tax free in many countries
  • portability (high value density per size/weight)

Gold also has high sentimental value, particularly between older generations. They simply HODL it, to pass it on to their heirs*. Other metals are more tied to industrial supply/demand needs, and I think in this case its better to have exposure trough equities in manufacturing.

*What do new generations think of gold? Will they sell it after inheriting it? Will this push the price lower?

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You pretty much covered it all. Could add one bullet that diamonds should see a steady decline in years to come as the newer generations are more educated on the true value/invalue of diamonds.