Investing

Investing into Gold - Recession Proof Investment?

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  • Apr 4th, 2020 2:16 pm
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Member
Dec 29, 2017
285 posts
210 upvotes

Investing into Gold - Recession Proof Investment?

At times like this, holding cash in the CAD$ currently at the bank is not the most viable option.

What are the most viable investment options at time like this? I was thinking of investing in Gold (gold bars).

Any other more-or-less recession-proof investment ideas?
3 replies
Member
Apr 2, 2016
482 posts
317 upvotes
track2 wrote: At times like this, holding cash in the CAD$ currently at the bank is not the most viable option.

What are the most viable investment options at time like this? I was thinking of investing in Gold (gold bars).

Any other more-or-less recession-proof investment ideas?
I think you missed the boat on physical gold. It's near impossible to find silver and gold bullion at this point as dealer inventory has been cleaned out everywhere. At the banks the lead time is weeks and you'll be paying 5-7% over spot value.

Paper gold might be your best option at this point.

Also, consider investing in other hard assets that retain value like certain brands/models of luxury watches. For example, if you bought a Rolex Submariner during the crash of 2008-2009 you would have made out better than if you invested into the S&P 500 index.
Member
Mar 14, 2018
423 posts
298 upvotes
BrianWS6 wrote: I think you missed the boat on physical gold. It's near impossible to find silver and gold bullion at this point as dealer inventory has been cleaned out everywhere. At the banks the lead time is weeks and you'll be paying 5-7% over spot value.

Paper gold might be your best option at this point.

Also, consider investing in other hard assets that retain value like certain brands/models of luxury watches. For example, if you bought a Rolex Submariner during the crash of 2008-2009 you would have made out better than if you invested into the S&P 500 index.
Really? How much was it in 2008? and What's the market value now?
Member
Apr 2, 2016
482 posts
317 upvotes
Boondoggler wrote: Really? How much was it in 2008? and What's the market value now?
The watch nearly tripled in value from then until now. Like new 2nd hand 6-digit submariners were going for about $3000 USD. Up until the most recent crash they were going for about $8000 USD. Market value has dropped a bit now on the last generation models, but still holding up very well.
I'm still angry at myself for not buying one then.

BTW, never in Rolex's history have they decreased prices. The MSRP on their new watches has increased 7-10% every year, and they don't allow authorized dealers to offer discounts. Typically their watches cost more on the used and grey markets due to strong demand.

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