Why do all millionaires buy stocks and no gold?
Howdy asked:
Hi! I work as a neurosurgeon and I have 32 years old.I have a good salary and I want to invest in something so I can let my children some worth.Why do all millionaires buy stocks and they don’t buy gold?I don’t want to let my children dollars because the dollar is losing value and I was wondering if I can let them some stocks which don’t lose value ,but I think that gold is even a better solution.What should I do?
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Hi! I work as a neurosurgeon and I have 32 years old.I have a good salary and I want to invest in something so I can let my children some worth.Why do all millionaires buy stocks and they don’t buy gold?I don’t want to let my children dollars because the dollar is losing value and I was wondering if I can let them some stocks which don’t lose value ,but I think that gold is even a better solution.What should I do?
December 28th, 2009 at 7:30 pm
Gold is called an “inflation hedge”… meaning that it generally keeps pace with the overall cost of living.
COMPARED to the DOLLAR…. it does go UP in value…… but that is VERY DECEPTIVE.
Even as it KEEPS UP with the cost of living, it is NOT CURRENCY. Like any other commodity, you buy gold at a lower price and sell it at a higher price. The GAIN you have to pay taxes on!!!
Your investment that was SUPPOSED to keep up with the cost of living is now BELOW the cost of living because of capital gains taxes.
NOTHING has out-performed the US Stock Market over any 10 year time horizon…. so that is where EVERYONE needs to be investing. ShtHammer
December 30th, 2009 at 10:04 pm
The answer is: they don’t, many people, millionaires or not, invest in various things including precious metals. You should talk to a reliable investment counselor about your options, then make your own decision. Wiz
January 2nd, 2010 at 12:47 pm
I work with neurosurgeons, and you don’t talk like any neurosurgeon I know. Then I looked at some of your other questions and you say you are still in school. Most neurosurgeons buy stocks, a few buy gold. Stocks do better over the long run. cobo
January 4th, 2010 at 11:50 pm
how do you know what ALL millionaires do?
there are over one million millionaires in the USA alone - and most are not public figures, so how would have any idea what even 10 of them are investing in??
gold can and does lose value just as easily as any other kind of investment - it’s down 8% from it’s high of just a month ago Doctor Deth
January 7th, 2010 at 12:25 am
Actually, smart millionaires tend to hedge their bets quite a bit. If you put all money in stocks or gold or land or your mattress or anything for investment purposes, you are risking being poor. Many do just that.
If you are rich and buy some very diversified stock AND some Gold and Bonds and Tbills and EFTs and houses and some other typical investments, no matter what happens you will still have more money than almost everyone. If that is not good enough, you are a gambling, not investing.
Just my opinion. jef
January 8th, 2010 at 8:50 am
gold is a suckers bet long term. Mubarak72
January 9th, 2010 at 11:19 am
If an investor feels the price of gold is going to rise he has a lot of choices here he can purchase fund symbols GDX, GLD or IAU. In this sector there are 2times long gold funds DGP and UGL and 2 times short funds DZZ and GLL.
Gold is just a commodity. Gold is simply a hedge. G Gordon Liddy owns gold and I bet he is a millionaire. Uncle D
January 11th, 2010 at 2:07 am
While I think your statements are a little too broad to be taken seriously…
Think about what you are saying for a minute: to invest in gold rather than the ownership of the life blood of all the major economies of the world because “the dollar is losing value” implies that you think in ten to thirty years gold will be worth more than all the industrial, commercial, residential, and trade wealth in the world.
You are a neurosurgeon? If such an upside down, crushingly destructive economy were to come to pass don’t you think it would be a better idea to get a realistic job? Who needs a neurosurgeon when the world is falling apart?
Seriously, your scenario is completely unrealistic. Whether or not the US is the still the center of the economic universe in 50 or 100 years, (1) it will certainly be the focus of major economic activity for the remainder of your life and (2) economic development worldwide will drive the creation of wealth in the commercial, industrial, and residential centers of the world. Gold is a fools bet for the long term creation of wealth. MVD34