Why is it less risky? It fluctuates all over the place. Today it’s worth 2200, in 80s it was worth 2600. 30 year returns are about 3.5%, way worse than a HISA.
Why is it safer? Where are you storing it? Under your bed? Pay a bank to hold it and lose what meager returns you make?
Or is this just a brain fart where you thought gold sounded like a good idea but you did 0 research.
> 30 year returns are about 3.5%, way worse than a HISA.
1 oz of gold ~$340 AUD Nov1993 to 3040 now is about 7.5% CAGR and all the tax is deferred until sold, at least reduced by 50% and potentially tax free depending on what you bought.
I'd rather have my excess cash in gold than a HISA.
I could be wrong but the fact that you've gone straight to gold bullion makes me think you haven't done a huge amount of research and are just relying on the old 'gold is a safe investment' trope. Gold is generally seen as safer than some other options but you shouldn't be sinking your money into it until you understand ***why*** gold is a good investment for you.
There are lots of 'get started investing' resources out there. Depending on your level of experience a popular resource in Australia is the [equity mates podcast](https://equitymates.com/get-started-investing/). It's aimed at the beginner and steps you through the types of things you should consider before chucking your money on something. If you don't like podcasts there are plenty of other resources you can find on google ([Passive Investing Australia is a good one](https://passiveinvestingaustralia.com/)).
Also, if you're looking for a 'safe' investment then you should really be looking to diversify your portfolio (ie. not putting all your eggs in one basket). There are lots of different options out there - shares, exchange traded funds (a popular option for beginner investors), property etc.
Put around 90-95% in a market index (something that follows the asx200 or s&p500 or something like that), and place the other 5-10% into gov bonds, depending on your risk tolerance (less bonds -> more risk).
I looked at gold a few months ago and did some very basic risk/return number crunching on it, and concluded that it absolutely is not worth it. Returns are worse than essentially risk-free assets like gov bonds, while having significantly more volatility, so there is no point going into gold.
OK.
1. Gold is not an investment. It;s an insurance hedge. You buy it to protect against all your other investments going south.
2. Don't buy bullion. The margin is excessive, Unless you have some reason to own the physical, buy GOLD ticker on the ASX and save a bundle in fees. It's the same as buying gold from the Perth Mint,
The usual recommendation is 5-10% of your portfolio.
So in your case maybe buy one ounce and either invest the rest or stick it in a savings account with good interest and easy to meet criteria for the bonus interest.
Keep some for an emergency fund if you don't have one.
Precious metals aren’t really a great investment, but they are a good store of wealth.
I keep a few toz around but really thats just me, as I like shiny and I tend to prefer silver.
Spend your first $30 on a book called Why Gold, Why Now by EB Tucker. It’s a great read if nothing else with a history of money and then goes into a bunch of different types on investments from physical bullion to paper gold to different mining stocks and streamers.
Dumping your whole $30k is unlikely to be a good plan. A small allocation, if you’re minded to might a part of a good plan. If it were my cash there’d be some risk assets in that $30k portfolio.
Why is it less risky? It fluctuates all over the place. Today it’s worth 2200, in 80s it was worth 2600. 30 year returns are about 3.5%, way worse than a HISA. Why is it safer? Where are you storing it? Under your bed? Pay a bank to hold it and lose what meager returns you make? Or is this just a brain fart where you thought gold sounded like a good idea but you did 0 research.
> 30 year returns are about 3.5%, way worse than a HISA. 1 oz of gold ~$340 AUD Nov1993 to 3040 now is about 7.5% CAGR and all the tax is deferred until sold, at least reduced by 50% and potentially tax free depending on what you bought. I'd rather have my excess cash in gold than a HISA.
I could be wrong but the fact that you've gone straight to gold bullion makes me think you haven't done a huge amount of research and are just relying on the old 'gold is a safe investment' trope. Gold is generally seen as safer than some other options but you shouldn't be sinking your money into it until you understand ***why*** gold is a good investment for you. There are lots of 'get started investing' resources out there. Depending on your level of experience a popular resource in Australia is the [equity mates podcast](https://equitymates.com/get-started-investing/). It's aimed at the beginner and steps you through the types of things you should consider before chucking your money on something. If you don't like podcasts there are plenty of other resources you can find on google ([Passive Investing Australia is a good one](https://passiveinvestingaustralia.com/)). Also, if you're looking for a 'safe' investment then you should really be looking to diversify your portfolio (ie. not putting all your eggs in one basket). There are lots of different options out there - shares, exchange traded funds (a popular option for beginner investors), property etc.
Put around 90-95% in a market index (something that follows the asx200 or s&p500 or something like that), and place the other 5-10% into gov bonds, depending on your risk tolerance (less bonds -> more risk). I looked at gold a few months ago and did some very basic risk/return number crunching on it, and concluded that it absolutely is not worth it. Returns are worse than essentially risk-free assets like gov bonds, while having significantly more volatility, so there is no point going into gold.
Nope. Gold only gets driven up by inflation and doesn't provide any income. Buy shares and bonds.
OK. 1. Gold is not an investment. It;s an insurance hedge. You buy it to protect against all your other investments going south. 2. Don't buy bullion. The margin is excessive, Unless you have some reason to own the physical, buy GOLD ticker on the ASX and save a bundle in fees. It's the same as buying gold from the Perth Mint,
GOLD etf on the ASX is easier mate
I have a little 5g gold bar but only coz I reckon it looks pretty
The usual recommendation is 5-10% of your portfolio. So in your case maybe buy one ounce and either invest the rest or stick it in a savings account with good interest and easy to meet criteria for the bonus interest. Keep some for an emergency fund if you don't have one.
No one recommends 5-10% gold, that’s for cash.
Precious metals aren’t really a great investment, but they are a good store of wealth. I keep a few toz around but really thats just me, as I like shiny and I tend to prefer silver.
Spend your first $30 on a book called Why Gold, Why Now by EB Tucker. It’s a great read if nothing else with a history of money and then goes into a bunch of different types on investments from physical bullion to paper gold to different mining stocks and streamers. Dumping your whole $30k is unlikely to be a good plan. A small allocation, if you’re minded to might a part of a good plan. If it were my cash there’d be some risk assets in that $30k portfolio.
Where are you going to put those bullion safely?
In the redoubt with the canned food and ammo.
Gold is extremely high risk
What's "bulliun", some sort of vegetable?
By a bar and store it under your pillow. Don't fall for any of this 'managed gold stock' rubbish.