Should You Buy Gold in 2026?
- 1 day ago
- 6 min read
Thinking about buying gold? You're not alone. But before you do, hear what our team has to say. In this Coffee with Waymark, Brendan hosts a hot debate between Hanifa and Brandon on whether gold belongs in your portfolio. It’s a short conversation that may give you a new way to think about gold.
Find out:
the pros and cons of investing in gold
some basic history of the gold market
if gold is really a “safe haven”
whether it’s better to buy physical gold or an index fund
Brendan:
Hey, thanks for joining myself, Brandon and Hanifa on a special Coffee with Waymark. Today we're going to talk a little bit about gold, and we're going to do it in a point-counterpoint format.
So, gonna give Hanifa two minutes to talk about why she would like to purchase gold (and personally I think she actually does) and then two minutes for Brandon to dispel some of the things that Hanifa actually said and make a case against gold. And then I'll follow it up at the end with some final thoughts and we'll go from there.
So we're gonna put Hanifa on first. I'm gonna set the clock at two minutes, so I have my little timer right here. Are you ready, Hanifa?
Hanifa:
I think so.
Brendan:
Okay. So make a point for why gold would be a good a good thing to purchase at this point.
Hanifa:
So everyone knows that right now there's a lot of economic uncertainty and gold historically has proven to be a good hedge against inflation and against uncertainty, so it could be a good diversifier as far as portfolios are concerned. And then another point is that right now the value of the dollar is going down. So if you're not investing in dollars, it could be a good way to preserve wealth. And then the third point, it's more personal. I went on a mining tour where I learned about gold, silver, copper, all of the fun minerals, and I just believe that gold or having some sort of physical asset is never a bad idea.
Brendan:
So would you be going for physical gold or buying it as an index fund or something like that?
Hanifa:
I would say both. Physical gold, as you know, Brendan, you love Costco, so they sell it at Costco. So that's always a good option.
Brendan:
They do sell it at Costco.
Hanifa:
And even buying it as part of an ETF, I don't think that's a bad option to do both.
Brendan:
Okay, you got 45 seconds. Any final thoughts before we turn the camera back over to Brandon?
Hanifa:
I believe that's it as far as gold is concerned.
Brendan:
Okay. I think, before we do shift over to Brandon, I think another thing that Hanifa touched upon, but we need to expand upon is that central banks around the world have used the dollar as a reserve currency. It seems with some of the stuff that's going on in the United States, some of those central banks are now turning against the dollar, selling the dollar, and there really isn't another currency that has the same influence as the dollar. So, some central banks are actually cashing in their dollars and turning to gold, and that's another reason to buy gold because the demand for it is not just high among day-to-day normal investors, but also with big institutions and even governments.
Okay. So with that said, I'm gonna stop the clock. Brandon, I'm going to reset the clock and give you two minutes to talk about why you would tell your friend not to buy gold. So go.
Brandon:
Perfect. Thank you for that. So I would say right now I think gold is priced due to market sentiment, meaning people's beliefs that it is gonna go up or like Hanifa said, because they're uncertain of the market. So that doesn't necessarily mean the value of it's going up. So it's not a direct hedge, moreso how people are feeling. So we're seeing a shoot up because I think a lot of people are more fear-based than actual true value of gold today. Going back to the seventies, there was a massive runup when gold had a great run, but then in the early eighties it had a steady decline. And even since then, there have been long periods of gold being relatively flat, so it didn't really necessarily keep up with inflation during those times.
A big contributor to that, I believe, is that gold doesn't have any dividends or interest, any income paying. So even if you are just holding physical gold in your pocket, it's only valued at what the next person's gonna buy from you at. In addition to that, if you have the physical gold in your wallet, well not your wallet, but in a shoebox in your closet, it's just sitting there collecting dust until you're ready to sell. Additionally, you need to go sell it to someone, eventually when you're ready, and you need to find a buyer to purchase it from you. And who knows, that buyer might actually have some additional commission costs or dealer costs to actually help you physically sell that.
So that's some of the reasons. So again, I think it's more an emotionally driven price than actually what's going on in the actual world.
Brendan:
Gotcha. So I think to summarize it, some of your thoughts, Brandon, it sounds like you're feeling that it's overpriced right now and when it's hitting almost $5,000 an ounce, that's mainly just emotional buying. That's not necessarily people saying the value of gold truly is $5,000. It's more that they're starting to get caught up in the, as they call it, the FOMO trade, the fear of missing out trade. So that's one thing, and then historically speaking, and this is something I've talked to a lot of clients about as well, is that gold has always been considered a “safe haven” asset, but in reality, it's had very long stretches… Like Brandon said, between 1980 and the year 2000, there were 20 years that, if you bought at the peak of the gold market, it took you 20 years to actually make that back because people weren't as nervous in the nineties during the internet bubble and all that other stuff. But then of course it came back in the two thousands.
So thank you guys for your contributions. Obviously the whole reason markets exist is that there are people on one side that think gold's a great investment and people on the other side that think gold's a bad investment. And, the people who think it's a bad investment are trying to sell it to the people that think it's a great investment. Thank you for showing the two sides of it. And if you did want to talk a little bit more about gold as a potential diversifier to your portfolio, feel free to schedule some time with us and we can chat about the different ways to do it.
So thanks again for joining us, and remember to be well and do good.
Brendan is the Managing Director for Waymark Wealth Management. He has extensive experience in comprehensive wealth management. His focus includes retirement planning, behavioral finance, investment portfolio construction, education funding, insurance & risk management, taxes, charitable giving, and estate planning. Brendan has an ability to take clients' complex visions and distill them down to simple action plans, helping them move from where they are today to where they want to be tomorrow.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents in specific states which are listed on our website at www.waymarkwealth.com
The opinions voiced in this video are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
This material is for general information and educational purposes only and is not intended to provide specific advice or recommendations for any individual. Investing involves risk including the loss of principal. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Any economic forecasts set forth may not develop as predicted and are subject to change. Precious metal investing involves greater fluctuation and potential for losses.
Comments