Does Gold Lose Value?
Like any other investment, gold can lose value, and in fact has lost value. Because its value is based in US Dollars, the price of gold has risen and fallen over time. Its price is influenced by world events, inflation, and current market sentiment. In fact, gold lost significant value between 1980 and 2008. If you bought gold bars or coins in 1980, you probably still haven’t fully regained the value relative to inflation. How to Invest in Gold There are four primary ways to invest in gold: gold coins, gold exchange-traded funds, gold mutual funds, and gold futures. Gold Coins If you want to personally possess your gold, then you need to buy gold coins or bars. The advantage is that you own the physical gold. The disadvantage is that it’s more difficult to quickly trade. Gold Exchange-Traded Funds Gold ETFs buy gold and hold it for its investors. You then buy shares in the fund as you would any other fund. This is significantly easier to buy and sell, but you don’t directly possess any
