Gold and Why it Can Be a Good Investment Opportunity - Mystical Money Machine

Photo by Jacek Dylag on Unsplash

The following is a post in the Mystical Money Machine group I created on Facebook.

Today is Tuesday in the Mystical Monet Machine group so I’m going to discuss different things about investing.

Tonight’s topic, precious metals, or more exactly, gold.

I disregarded gold a while ago. I was convinced cryptocurrencies are the future, and they are.

But gold still has its value.

Why You might be asking? It’s just a chunk of metal so to speak with a shiny glow.

Well, not exactly.

It is actually one of the best materials we have on this planet. Used in many industries besides jewel making. Electronics, space travel, computers etc.

That means there is a demand for it.

Where there is a demand, there is a price.

But what about from an investment point of view. Why is it good?

When the shit hits the fan and the power is gone (or when it’s taken on purpose) gold is still there and it can be exchanged between two parties.

And because it’s such a precious and valuable metal, people want it.

Again, when people want it, there’s a price on it.

A very important thing to realize with all of this.

Which brings me to the second point why gold is a good investment opportunity.

One of the only ways that gold could lose all of its value would be if humans invented or found an even better metal.

Just like with the fax machine. When people invented a better way of exchanging information, the fax machine died.

But it is much harder to do with precious metals.

At this moment only a couple of scenarios come to mind where we as a society could invent something better.

First, scientists somehow find a way of merging other metals to produce an even better metal. Very unlikely.

Second, we travel to another planet and discover a new metal that is better than gold or any of the other ones. Becoming more and more likely but I believe we still have time when that becomes a reality.

Third, an alien race visits planet earth and brings a new metal to barter with. We establish a trade route with them and the metals we have here become pointless to use. Also, very, very unlikely. Still possible though.

So as You can see there aren’t a lot of likely scenarios gold could suddenly become unwanted in the marketplace.

This brings me to the third idea of why gold is a good investment.

Belief.

People still believe in it. A lot of old-timers are big on gold. They always have it in their portfolios and pie charts. Some percentage of their investments is almost always gold.

Although the younger generation seems to be losing faith in gold and some even call it dead, I believe it is a big mistake to disregard it completely.

This way of thinking is extreme and extremes don’t really do well in this reality of ours.

Just as it is wrong of the old-timers and old school guys to call cryptocurrencies a scam. That usually means that they don’t really understand what it is.

The big point here is that a lot of people still believe in gold. And to believe in something is everything.

You get people to believe in something, and I mean really believe, it takes lifetimes to shake that belief afterward.

I think the belief in gold is well seen in its market cap of 7 trillion dollars as well. You have that much money in one place, people must still value it and most importantly, believe in it.

That brings me to the negative side of gold and other precious metals.

Storing it and exchanging it.

It’s very difficult to store it Yourself. You have to have a proper safe for it, and that’s an extra expense right there. Not to mention the fact of storing that personal safe somewhere. A hassle compared to the Monero wallet that is comfortably sitting on Your hard drive and You can access it basically from everywhere.

Also using gold. Let us say that You are doing business with a Chinese company and they agree to send You merchandise in exchange for some gold.

Now You have to get it to them. I can’t even imagine the hassle of that endeavor.

Obviously, You could store it in a bank or even a business that specializes in that but that’s another expense that eats away at Your investment. And also You would have to trust other people to keep it safe.

Compared to that Monero wallet sitting on Your hard drive.

You can see there are many positives to investing in gold, as well as some negatives. But having all of this in mind and knowing that we are in times of economic uncertainty (a time when investors historically flock to gold) I believe gold is a solid investment for at least the next 10 years.

Who knows what happens after that, maybe the aliens will come and establish that trade route…

Be safe out there and happy investing.

Ian Altosaar

Join the Mystical Money Machine group here: https://www.facebook.com/groups/532315657241148/

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