Is gold a good investment?
Gold has historically been one of the worst places a person could invest his or her money. Because precious metals do not pay any type of dividends, an increase in their market price is the only way for them to earn you additional money. The price of gold has remained around $400 per ounce for two decades. If someone bought $10,000 worth of gold in 1980, even though the price of gold has not dropped, inflation would have eaten up over half of that person's original investment.
Liquidity is another big problem with gold. You can't use it make a house payment or pay your babysitter. Plenty of firms are in the business of selling gold bars and coins, but not many of them are interested in buying back gold. The few dealers that do purchase gold normally do so at a large discount to the selling price.
"They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD" (Eze. 7:19).
"Lay not up for yourselves treasure upon earth, where moth and rust doth corrupt and where thieves break through and steal: But lay up for yourselves treasures in heaven where neither moth nor rust doth corrupt and where thieves do not break through and steal: For where your treasure is, there will your heart be also" (Matt. 6:19,20).
"The fear of the Lord is clean, enduring for ever: the judgments of the Lord are true and righteous altogether. More to be desired are they than gold, yea, than much fine gold: sweeter also than honey and the honeycomb" (Ps. 19: 9,10).
"Happy is the man that findeth wisdom, and the man that getteth understanding. For the merchandise of it is better than the merchandise of silver, and the gain therof than fine gold" (Prov. 3:13,14).
"I love them that love me: and those that seek me early shall find me. Riches and honour are with me: yea, durable riches and righteousness. My fruit is better than gold, yea, than fine gold; and my revenue than choice silver. I lead the way of righteousness, in the midst of the paths of judgment:" (Prov. 8:17-20).
