Ashley Asks A Question: Is investing in gold really a thing?

Welcome friends, to the first ever Ashley Asks A Question post! I'm Ashley, your finance novice and resident not-so-subject-matter-expert. I'm the Director of Marketing here at Wela. I know marketing, I do not know money all that well (but I'm learning).

Most of the time when the folks around the office starting talking shop I'm all like


So! As I fumble my way through the world of financial planning and investing I invite you to learn with me as I go. Every other week I'm going to ask our COO and client strategist Eddie a burning question I have and post it along with his answer on Saturday. Let's begin!

Ashley's question: Is investing in gold really a thing?

Eddie's Answer:

In short, yes. Buying gold is viewed as an alternative store of value. It is a commodity but it doesn't really do much for us in the way of practicality.

Gold doesn't generate cash flow, grow food, house a business or a family, etc so it's tough to value and value is important when it comes to making an investment. So really, I think the value of gold lies in the eye of the beholder. It's whatever everyone else thinks it's worth.

So yes, investing in gold is a thing. But it can be difficult to do well. In practice, investors will often hold a little bit of gold in their portfolio because it has a low correlation to the rest of the market.

And there you have it. Gold: a thing, but not that big of a thing. Want to know more about investing in gold? Tell me so in the comments; maybe I'll ask him to elaborate.