Ask Doc For some folks, gold isn't an investment... It's a religion.
I don't agree with that approach. In my letters, we approach gold like any investment... We set emotion aside and look at the facts. And we get a lot of questions on gold... especially in times of market volatility and fear of catastrophe.
The fundamental reason people buy gold is that it's a great form of savings... and it's the ultimate "store of value." That belief comes from all the reasons gold was used as money... There's a finite amount, it doesn't deteriorate, etc.
Here's what's wrong with that thinking...
If you own one ounce of gold, no one can tell you whether it will retain its value over time. It depends on the price of gold relative to other things. You see, gold's fundamental problem is that it is an "unproductive asset." It creates nothing, generates nothing, and does nothing that increases the value of your investment in it.
Think about it this way... Land can be farmed, and buildings can be rented. An equity stake in a company (its stock) can grow more valuable as the company sells more goods. And it can generate cash in the form of a dividend. As a result, you can build financial models assessing things like its present value and future cash flow... giving you the tools to make reasonable estimates of that asset's future value.
Gold does none of that. So you have no way to know its value other than the price you pay. If someone isn't willing to pay $50,000 for $50,000 worth of physical gold, you don't have $50,000 worth of physical gold.
But gold is the quintessential "chaos hedge." Gold outperforms many other asset classes during times of great economic and political stress. That's why I think every investor should own some gold.
Gold is the safeguard of last resort.
Earlier today, two gold experts I know released a video detailing a set up in the market today that has only happened once before in history. The last time it happened, it sent gold stocks soaring in the triple digits within a six-month period.
They also explain that, right now, insiders, central banks, and market titans are buying gold. And when the stewards of the money system start to buy the asset that is the hedge of that very system they manage... it's time to pay attention.
Now, let's dig into the Q&A... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I really do read every e-mail.
Q: My doctor just recommended I get the shingles vaccine since I just turned 50. What's your opinion on this? – R.D.
A: Here's how folks can get shingles... If you had chickenpox as a kid, that virus never left you. Some of it lies dormant in the nerves along your spinal column.
Later in life, that virus can wake up, triggering excruciating blisters and redness on one side of the body... an infection called shingles. Turns out, shingles afflicts 1 in 3 Americans at some point in their lifetime.
Typically, it presents in a band along the torso, but it can occur anywhere...
I saw a number of shingles patients in my ophthalmology practice because about 20% of shingles cases develop in the eye and can lead to blindness.
And unfortunately, shingles can strike twice. The chance of recurrence is about 4.5% in patients younger than 50. But the risk increases to nearly 6% for folks 50 and older. And if you have a weak immune system or experience a stressful event, your risk of another case of shingles rises even more.
So, if you're over 50 years old, you should get the shingles vaccine. In a large, five-and-a-half-year study of 38,000 men and women (age 60 and older) across 22 sites in the U.S. Department of Veterans Affairs system, the vaccine was found safe compared with a placebo.
The typical complaints still occurred with the vaccine: redness, swelling, pain, and irritation at the site of injection. Otherwise, this vaccine appears to be quite safe, and it reduces the pain and occurrence of the disease by at least 50%.
The vaccine typically costs around $210, according to recent data from GoodRx. It may also be covered under your health insurance, and Medicare Part D covers it the same way it covers regular vaccinations.
What We're Reading...
- Did you miss it? The most likely event to follow a market high.
- Something different: Would you pay $400 for a pineapple?
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
May 24, 2024
P.S. Our offices are closed for Memorial Day next Monday, May 27. Expect your next Health & Wealth Bulletin issue on Tuesday, May 28.