29.11.2022

GOLD OR APPLE SHARES?

At a critical time, under the influence of panic, people often think about quick earnings.

Most people doubt where to invest: in the shares of large companies, in stable gold or high-vilatility cryptocurrency. Actually, today we will talk about investing in Apple shares and gold.

The specialization of this well-known company is very broad: it is the production of digital equipment (tablets, smartphones, watches, etc.), mobile accessories and software creation. The market capitalization of this brand has exceeded $3 trillion, and the value of shares is constantly changing.

Let's find out why the two comparison tools are so different, and most importantly, who will win this duel?

And we will compare:

  • lifetime,
  • reliability,
  • stability,
  • materiality.

 1. Lifetime

The company Apple became public only a few years after its opening. But the company's shares went on sale only in 1980.

And what about gold? In 560 B.C., the Lydians minted the world's first gold coin, and it is difficult to imagine the years when the first gold was mined. So the question here is what source of income will you prefer? Volatile stocks or investments in sources that exist for thousands of years?

2. Reliability

Any company can go bankrupt, just like stocks, which can simply fall in price. Over 3 years, Apple stock quotes have fallen by -43.396%.

Gold, on the other hand, is constantly increasing in price. It is one of the few assets in the world that has been in demand throughout human history. Could something that has been steadily increasing in value and that has been the primary currency for hundreds of years depreciate? We don't think so.

3. Stability

Why is a country's wealth measured in its gold reserves and not in stocks or cryptocurrency?

Countries keep gold to protect themselves from financial crisis. The last global financial crisis was in 2007-2008, when the American mortgage lending market completely collapsed. Then, within a few months, gold received a huge increase in value.

Since the world economy is unstable, and the real level of inflation is quite high, gold remains one of the means of saving and multiplying money. The price of gold is a real indicator of inflation in the country. Since it has grown almost 8 times, the inflation on goods outside the consumer's market basket is approximately 2 times lower.

4. Materiality

With physical gold, you have certainty in the future. You can sell it at any time. With shares, everything is exactly the opposite. In a bankruptcy situation, it is not guaranteed that you will continue to be the owner of the assets, it is quite likely that you will lose it.

The choice is yours!