No one really knows why we have that fascination, but we have for thousands of years.
Those that support it will argue that it serves as a hedge against uncertainty. When there is a major crisis, most investors want to own gold even if they will never hold an actual bar in their hands.
When there was the financial panic happened in 2008, gold saw a five percent increase and stocks lost by thirty seven percent. Again, when the credit rating of the nation fell, it outpaced stocks by approximately eight points.
The Cons of gold investment
While equities soared from 2013 to 2015 gold dropped big time. An ounce of gold today is worth three times less than what it did right after the great recession.
It is important that you know exactly what you are investing in. When you buy shares what you are actually doing is wagering on the company to do well in the coming future. If it grows rapidly, the shares become more desired or it will make much profit that is returned to you as dividend.
This is not the same process for gold investment. This is the main reason many famous investors are not fans of gold investment.