No investment, including gold, is guaranteed to appreciate in value. Anyone who claims to be 100% sure that gold will appreciate is engaging in predatory sales tactics. However, one of the most commonly held beliefs about the value of investing in gold is that gold tends to gain value when the stock market loses value. Many people find the thought of “hedging their bets” with gold comforting, believing that having gold in their portfolio will provide them security. While this often seems to be the case, it could change in the future. No investment is certain.
When deciding whether gold’s value is likely to rise enough to be profitable, as opposed to merely a form of security, consider how much its value will need to rise to cover the cost of account setup and maintenance fees. Unlike stocks or even cash, you won’t earn interest or dividends on a physical asset like gold. The only possible way to profit is if you sell it at a higher cost than you bought it for.