This week, we’re busting myths about investing, so you’ll be better equipped to think rationally and make smarter decisions about how you invest your money.

Today myth I’m busting is: Gold is a safe investment.

Eh! Wrong again.

When there’s volatility in the stock market, the ads for gold come out of the woodwork - “Protect your IRA by transferring it to gold today!” But have you ever noticed that these ads disappear again as soon as the stock market turns around?

Gold has long been a safe haven investment in times of uncertainty and economic downturns. But it’s actually a terrible long-term investment. If you bought gold in the 1970s, you lost money for about 35 years. 35 years. Multiple decades of negative returns before gold investors were finally vindicated in the 2000s, when gold finally had a nice run. Any investment that could possibly lose money for longer than I’ve been alive is not even remotely a safe investment.

In fact, what makes gold a poor investment choice is that it is incredibly volatile!  Extreme volatility without properly rewarding you for that roller coaster ride.

And if that wasn’t enough to bust this myth about gold being a safe investment, consider the words of Warren Buffett, arguably the most successful stock market investor ever. He said: “(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

That’s it for today. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme.

But before you go, please leave a review for the One Minute Retirement Tip in Amazon! Reviews help Alexa users decipher between the gold and the garbage, so if these tips are helping you on your path to retirement, please share the love with others by leaving a review!

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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