Dropped gold (and silver) and lesson learned

So I finally got tired of paying big carrying costs to store my rather modest pile of precious metals that cost of fair bit each year to store and carried a lot of third party risk. Let me tell you it's not cheap to store precious metals. So I go to sell my precious metals and I discovered a couple things. First of all despite the hyperinflationary environment in the Western world, my precious metals dramatically underperformed even just a typical dividend paying stock over the exact same time period when you add stock appreciation and dividends. And of course it far underperformed Bitcoin. Secondly (and helping to explain the first point) the spread was just brutal, about 6% on the gold and no lies 20% spread on silver between bid and ask at the large broker where I unloaded it. Sure I could have gone and sold it privately somewhere, and risked getting counterfeit bills, or maybe mugged for my trouble.

Periodically I've defended precious metals on this sub saying there is room for both digital and physical gold for individuals. I hereby retract that statement. As a store of value, especially for an individual investor, Bitcoin is better than gold, period.

Submitted November 05, 2022 at 10:12AM by E-renter https://ift.tt/zE25FqX