- I'm about to choose between gold and stock market indices. Which is preferable?

Stock market indices (which brokers love to refer to as a kind of holy grail tracking market trends) are in a state of constant flux, causing investors at times to sustain catastrophic losses. The list of companies included in almost any stock index from 20 years ago differs significantly from the list of companies listed in that same index today. The claim that investing in stock indices is an extremely profitable and highly reliable way to invest money is a myth spread by paper traders. In reality, no ink inscription on paper makes buying it a profitable and reliable investment. The 2008 collapse of Fannie Mae and Lehman Brothers, which both went bankrupt despite having assigned the highest AAA ratings, aptly illustrates this point.

 Before making any decision, google the phrase "stock market crashes."

Any securities, regardless of their name, always carry the risk of the counterparty issuing that paper, which is passed on to the buyer. Gold, on the other hand, offers timeless value. Bullion carries no counterparty or third-party risks, whether on the part of governments, banks, corporations, etc. Consequently, gold cannot go bankrupt. Consequently, we can safely say that gold carries zero counterparty risk.

 We know of no film or literary story in which the main characters embark on a quest for stocks or bonds. In all such plots, expeditions are launched in search of gold.

Personally, what would you take along with you if you were setting out on a journey 20, 40, or even 100 years into the future: stocks, bonds, dollars, euros, or gold?