WEST MIAMI, Fla. (NewsNation) — The uncertainty on Wall Street and recent bank collapses have some looking to put their money elsewhere. One of those places? Gold.
For most Americans, there is no need to panic over the collapses of Silicon Valley Bank and Signature Bank — your money is likely safe in your bank. But many are still curious about the alternatives out there.
Jose Guerro told NewsNation he’s seeing more and more people coming into his West Miami jewelry store interested in buying gold.
“In the last few days, a lot of direct messages, a lot of messages through our Instagram, a lot of people asking if we have bullion, coins … if we have heavy chains or heavy bracelets,” he said.
Guerro said that given the recent bank failures and the possibility of a recession, he understands people’s concerns.
“I think a lot of people understand that there might be a little bit of uncertainty going on right now,” he said. “They’re worried about where their money’s going to be in a couple of months, so they’re opting out and buying jewelry.”
According to bankrate.com, gold is a “safe haven” for investors,” and a “safe asset that has a proven track record of gains.” The same site also says you can buy gold in everything from bullion to electronic fund transfers (EFTs) that own mining stocks.
But is gold the right investment for you?
Rohan Ganduri, an associate professor of finance at Emory University, said many see gold as a good hedge against inflation. But it may not be the best short-term option.
“Gold, as an inflation hedge, seems to work over very long periods of time — over 200 years. And in some ways, it’s irrelevant to an average person because we don’t live that long,” he said.
Nevertheless, Guerro’s inbox is still blowing up.
“If you have gold, you can always bring it to us; you can always sell it,” he said.
Ganduri suggests other alternatives, such as putting your funds directly into U.S. Treasury bills — debt instruments that are fully backed by the government. He also warned against investing in cryptocurrency.