Is it time to buy Gold?

Here’s a list of materials etf’s. It looks like everybody else has the same idea. many are up 2-3% today

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I looked into CAT theft deterrents. None of them looked very promising. They all cost a lot and didn’t seem that effective.

The best solution I’ve seen is custom made shielding for cars like the Prius that basically put sheet metal with security screws over the cat and make it a lot harder to steal. The other solution involved putting the cat in the engine bay after the exhaust manifold rather than on the underside of the car.

probably help protect expensive battery too.

I wasn’t really concerned for myself about CAT thefts. I was looking at companies manufacturing deterrents as a possible investment. You are right about the best deterrent being a bolted on large shield. Anything that isn’t easy is currently a decent deterrent.

Gold prices are off their lows but remain even now a bit below the $1800 level:

The gold market is off its session lows but remains under $1,800 an ounce as consumer inflation pressures rise less than expected in August.

Tuesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.3% in August, after a 0.5% rise in July. The data missed consensus forecasts as economists were forecasting a 0.4% rise.

For the year, the report said that headline inflation rose 5.3%, in line with expectations.

The full report is here:

Gold prices remain below $1,800 following 0.3% rise in U.S. CPI

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Thoughts on whether REITs offer better inflation protection than gold? I’ve had a stake in SCHH (Schwab ETF of REITs) for awhile, but am open to other options.

I think a smarter bet is to buy gold mining stocks. Gold isn’t an investment. It just sits there and maintains value. Think of it as an alternative to holding cash. It will hold its value with inflation but it isn’t going to make you rich.

Gold stocks are a real business investment that you can hold for long periods of time. The gold mining stocks are down quite a bit so it would likely work out to be a good purchase.

My thoughts on REITs:

  • Do not have any, because I already have a significant chunk of my net worth in real estate (though it’s only residential).
  • If & when inflation goes up or the economy heats up, so will interest rates, which will put downward pressure on housing prices, and therefore probably REITs. But I haven’t researched whether this actually happened in the past.
  • I expect lots of headwinds for office space and possibly even retail space because of the pandemic shock. More people will be working from home, shopping from home, and eating at home than before.

My thoughts on gold:

  • Hasn’t been very good over the past few years. Actually I think it’s the worst performing “asset class” I own. There’s no guarantee it’ll provide any inflation protection going forward.