Gold vs. Gambling: Differences in Buying Gold Over Gambling
Distinct differences in gold investing and gambling
Investing is the acquisition of a valuable asset. The asset is purchased in the hope that its value will rise or that it will create income for the buyer. Investing in gold, stocks, real estate, or a comic book collection all go under these criteria. Alternatively, you can buy debt: if you lend money, you will own debt that will (hopefully) be repaid and generate a profit.
Gambling is a form of risk-taking. While playing a game of chance, you haven't actually purchased anything. In certain games, such as blackjack and poker, there is a degree of skill involved, while in others the outcome is completely random (slot machine). It is common knowledge that in most gambling games, the odds are stacked against the player and in favor of the game operator.
When it comes to calculating an expected value, there is no difference between gambling and investing in gold in terms of the probability of success (e.g. buying a share of stock). In both cases, the expected value is most likely negative, but it is not a distinction that should be included in a definition (else every company that gives a bad quarterly earnings report suddenly changes categories).
That justifies investing professionals charging fees to guide you to the right investment, which is why they argue there is a difference. As a result, ideas like the reason for purchase are presented. The purchaser's state of mind should not be taken into account when determining the classification of an item.
Increasing Your Chances
Professional gamblers, on the other hand, employ a variety of techniques to overcome the odds. Poker and baccarat players, for example, have honed their skills to the point where they consistently win. The same is true for those who enjoy playing the roulette wheel. If you enjoy playing slot machines, your best bet is to stop playing as soon as you win, which is hopefully within the first few pushes of the lever.
Investing in Gold vs. Playing the Odds
Metals investing is not a form of gambling. Is that one of the reasons? Even if you don't know for sure if your scrap contains actual precious metals or not, there are various techniques to ensure that you get a predictable and honest return on your investment in precious metals.
You'll Be Able to Beat the Casino at Its Own Game With Gold
Investment in precious metal scrap is not guaranteed. Unless you know exactly what you're getting yourself into, you could end up with a pile of floor sweepings or scrapings from an old factory with very little value.
Gold Resources
- Will Gold Go Up This Year?
- Investing in Gold: A Complete Guide
- Proof Coins: Why They Are Worth Your Investment
- Is It True That Gold Is Not in a Bubble Situation?
- Gold Vs. Inflation: Factors to Consider
- Can You Buy Gold From a Bank?
