Ethan, Guy Adama, Nicole discussed on Money Rehab with Nicole Lapin
I just dressed the process gold kind of the same. A lot of people know that gould is valuable and that many people advocate for gold as an investment. But what does that actually look like. How do you invest in gold. Where do you even get gold money. Rehabbing ethan wants to know if an investment in gold is a golden idea. Here he is nicole. My name is ethan and i live in chicago. I was listening to your upset with guy adama and was really interested in your conversation about gold. I've seen online. That a public opinion is kind of split Some people are super into gold. An investment in some seem to think it's kind of dumb what do you think. And also if it is a good idea. Where do you get gold. yes ethan. I totally see the same split public opinion online. It's hard to know who to believe. Some people tote gold as the be all and all of investments while other say investing in gold is just a scam. you see on late night commercials. So let's settle this once and for all in the finance world. Gold fall into a category of investments called commodities in general commodities are divided into two categories. Hard and soft soft commodities are things that grow like corn cattle or meet sugar cotton and coffee hard commodities are things that are drilled or mind like crude oil natural gas aluminum silver and yes gold for the folks outside of the financial industry. The most common commodity to get involved with is gold. Gold doesn't offer income or dividends like stocks. But it's considered a safety or safe haven that although the price itself isn't guaranteed to be stable people think that if paper money fails then gold can save the day. i mean. that's a little bit of a zombie apocalypse scenario. But it's true. The other reason many investors have a little bit of gold in their portfolios is as a protection against inflation as we talked about with james alter inflation is the condition where the cost goods is more expensive than it used to be. It's why movie tickets were five bucks in the good old days and now they're fifteen. Historically gold has been a good hedge against inflation of the us dollar. If you're sold on gold there are a few different ways to invest and that is pretty much true of all commodity investments the simplest and also hardest way is buying the actual commodity because that means having gold bars or coins or bushels of corn lying around your place that never seemed ideal to me especially when i was storing my sweaters in the oven for lack of space in my apartment the next simplest way is to go with a public company that produces a commodity like rio tinto group for minerals or archer daniels midland which produces wheat corn cocoa and other agricultural commodities. Or if you don't wanna put all of your eggs in one basket you could buy a commodity exchange traded fund or etf. We'll get more into this in other episodes but etf's are slightly similar to index funds in that you're not buying stock in one company commodity. Etf's would have a smattering of commodity producing companies in the fund. For today's tip. You can take straight to the bank. Historically inflation has increased and. I think it's reasonable to assume it will continue to do so. So i'd recommend that in your portfolio do include some hedge against inflation. I'd keep in mind. That gold is even wheeling common hedge. But it's not the only option. There are plenty of others like treasury inflation protected. Securities tips or crypto. So if you can't get those late night gold infomercials out of their head. Keep listening to money rehab to learn about other hedges against inflation money. Rehab is a production iheart radio. i'm your host nicole. Lapin our producers are morgan lavoix. And mike cost rally. Executive producers are nikki tour and will pearson are mascots are penny and mindy huge thanks. Og money rehab team. Michelle lands for her development. Work catherine law for production and writing magic and brandon dicker for his editing engineering and sound design. And as always things to you for finally investing in yourself so that you can get it together and it all. I'm khalil muhammad. And i'm ben austin re two best friends one black one white. I'm a historian and journalist and this is some of my best friends are as in. I'm not a racist. Some of my best friends are dot dot dot dot dot and this show we wrestle with the challenges and the absurdities of deeply divided and unequal country. Listen to some of my best. Friends are on the iheartradio app apple podcasts. Wherever you get your podcast. Strawberry spring based on a short story by stephen king is someone there. There was a murder on the campus. Just now the radio. Campus springing jack is back produced by audio of media and iheartradio. Listen to strawberry spring on the iheartradio app apple podcasts. Or wherever you get your podcasts mirror cafe table for is a brand new podcast with me. Ruth vouchers each week. I invite a special guest such as paul mccartney glenn close or michael cain to discuss their food memories but they cook the restaurants they choose and the food they see when comfort is needed years ago. Jim mesh yes. Now it's copy Listen to river cafe table for on the iheartradio app on apple podcasts. Or wherever you get your podcast..