A lot of my friends think that gold price has always been going up and buying gold is absolutely a good investment. However, the fact is that gold has fallen half the price in 1980s, and fallen further down in 1990s. Will history repeat? Maybe, but I do not know when. Overall, its price has risen since 1975, so it is a good investment hedging against inflation, but not good for speculators (who are trading gold in short terms).
To my grandma and my mom’s generations, they really love gold. Without it, my grandparents would not be able to make it to the States (they got here by boat after the Vietnam War). When my mother started the real estate business in the 1990s, she has used gold value for trading houses and lands. She has made a lot of profits and became a successful businesswoman. My grandma from my father side who is currently living in Saigon even has gold hidden under the ground in her house. Gold has been associated with their hopes, their tears, and their success.
To me, I am not a big fan of gold. Warren Buffett has said that people dig gold out of the ground and then they bear it under the ground. It just sits there and may not be used until one dies. Like my grandma in Vietnam, she is 90 years old now and she is going to pass all her gold to her children. If I want to do like her, I must have a house so that I can keep it in my backyard. Buying a house is actually a better choice to deal with inflation. The lending interest rate is so low now, but it may go up in the near future as a means for central banks to control inflation. I hope I will be able to settle down soon and buy a house to start a family with my hubby before the interest rate goes up.
Do you buy gold? Do you keep gold in your house?