Are stocks better or precious metals better? Borrow Buffett's famous saying: Do not do it if you are not familiar with it.
People began to put forward the problem that stocks and precious metals are only two trading varieties and both are investment varieties. What is the difference? What are the characteristics of each variety? What are the advantages and disadvantages? Which one should I choose? First of all, it depends on the expectations and knowledge of investors. The combination of the two determines the final choice of varieties. The theorem of supply and demand in economics points out that demand is the unity of desire to buy and ability to pay. You can't do it without knowledge, and it's a loss to do it. The same knowledge, know the attributes, how to trade, the general trend, etc. But it is not enough to expect too much, because there are uncertain factors in investing in this variety. Stock is linked to the corresponding enterprises, which represents an expectation for the future and has certain growth and outstanding value-added functions, but there are many kinds of transactions, and the ability of stock selection determines the income level of investors; Precious metals, on the other hand, represent a kind of scarcity and have the function of preserving value. In addition, the precious metals traded in electronic transactions are generally global leveraged transactions, which greatly increases the difficulty of investment, so few people invest in precious metals in China. If you are familiar with the two varieties, investors can allocate them according to their own capital situation and risk-return matching, and they can allocate them normally, because the correlation between stocks and precious metals is relatively low, which has the value of diversification and hedging. For example, in the face of turmoil or systemic risks, precious metals will rise and stocks will fall, but the allocation ratio is an art work, which depends on investors' judgment on the future. Whether stocks are good or precious metals are good, investors should allocate according to their own situation, choose the varieties they know and hope to match risks and returns, and borrow Buffett's famous saying: unfamiliar varieties are best not to participate. Bottom line: the right one is the best.