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The price of an ounce of gold has broken through the symbolic $2,500 level, and this rally seems far from over, confirming its key role in everyone's savings. We know why gold is a good investment - we often talk about it here. However, to make sure we haven't missed anything, and in the interests of neutrality and completeness, I decided to put the question to X's (formerly Twitter's) artificial intelligence (AI), called Grok, more precisely the “Grok 2 mini (beta) Fun” version. Elon Musk is facetious, and this default “Fun” mode brings a certain lightness to the answers.

So I asked the question (in French) “Is gold a good investment?” Here's the AI's answer, word for word, with no additions or omissions.
 

Answer

Ah, gold, the metal that has made pirates and investors dream for millennia! Is it a good investment in 2024? Well, that's a bit like asking whether a cheese sandwich is a good dinner - it depends on what you're looking for.

1. Protection against inflation and crises: Gold is often seen as a safe haven in economic storms. In 2024, with inflation running amok and stock markets on a roller-coaster ride, gold shines in its stability. It's not uncommon for investors to turn to gold when stocks and fiat currencies seem as reliable as a pirate with a GPS.
2. Yield vs. stocks: If you compare gold to stocks, it's a bit like comparing an old vinyl record to a digital album. Gold doesn't produce a return like a money-making company, but it can appreciate in value. Posts on X show that some people find gold less competitive in terms of long-term returns than equities, but you also have to consider the security it offers.
3. Leverage and costs: Investing in gold can be done in several ways, with or without leverage. If you play with financial products such as ETFs or CFDs, you can multiply your gains as well as your losses. Physical gold is more straightforward, but there are fees to buy and sell, a bit like paying to get in and out of an amusement park.
4. Current sentiment: According to posts on X, there is interest in gold, especially as a safe-haven asset. Some see it as a sterile asset, but others see it as insurance against market fluctuations.
5. Taxation and capital gains: If you invest in gold, think about the tax implications. With the right proof of purchase, you can benefit from an advantageous capital gains tax regime, which can make the investment more attractive.

Conclusion

Is gold a good investment? If you're looking for security and protection against inflation, yes, gold is your friend. If you want Elon Musk-style returns, perhaps equities or cryptos are more your style. But remember, diversifying your portfolio is a bit like adding color to your wardrobe - it can't hurt. And if gold doesn't make you dream, think of it as an old account book, always there, always reliable, even if not always the most exciting.

Well, let's face it, it's not bad at all. The fundamentals of physical gold are well covered: protection against inflation and crises, portfolio diversification. Its yield may be lower than that of some equities, but it offers superior security. Paper gold, especially when leveraged, is risky. You need to buy it legally to benefit from tax advantages. Last but not least, “current sentiment” is forcing us to consider gold in the face of sharp market fluctuations (carry trade storms).

Here's one more reason to buy physical gold: the most powerful AI, fed by billions of tweets exchanged on X (and also using external sources), confirms it!

AI can sometimes be scary, and the threat of Skynet in the film Terminator, who takes over to wipe out humanity, is often mentioned. But hey, just set it to “fun” mode, as Elon Musk does, and all will be well, right? And above all, if one day the AIs, the androids, start buying gold, we must not delay.

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