Jan. 21, 2026

Should You Invest in Gold?

Should You Invest in Gold?

Gold surged 50% in 2025 breaking above $4,000 driven by geopolitical fears, central banks buying 1,000+ tonnes annually, and rate cuts, but gold's long-term real return is only 0.5-1% annually versus stocks' 6-7%—turning $10,000 into $13,000 with gold versus $60,000 with stocks over 30 years—making it useful only as a small 5% portfolio allocation for crisis insurance rather than a core wealth-building strategy since it produces no cash flow or compounding income.

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