Forget Gold! I’d buy crashing FTSE 100 shares for a passive income

first_img Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Rupert Hargreaves | Sunday, 5th April, 2020 | More on: ^FTSE Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Forget Gold! I’d buy crashing FTSE 100 shares for a passive income See all posts by Rupert Hargreavescenter_img Our 6 ‘Best Buys Now’ Shares The FTSE 100 has crashed over the past few weeks. Following this decline, some investors have rushed into gold, in an attempt to protect their wealth.However, this could be a big mistake. Over the long run, shares have proven to be a much better investment than gold.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…FTSE 100 bargainsAs the FTSE 100 has declined, some fantastic bargains have emerged. Blue-chip businesses that were trading at eye-watering profit multiples just a few weeks ago are now dealing at some of the cheapest levels in a decade.On the other hand, the price of gold has surged.This presents a dilemma for investors. FTSE 100 stocks now look cheap, but they could decline further in the weeks ahead. The price of gold, on the other hand, could increase over the coming weeks as uncertainty prevails.The big difference between the price of gold and the FTSE 100 is the fact that the price of gold is determined by supply and demand. Meanwhile, cash flows from the underlying businesses determine the value of stocks and sharesAs most companies are now facing an unprecedented operational environment, it’s challenging to determine the value of these enterprises.Nevertheless, over the long run, the economy will likely return to normal. When it does, investors who are brave enough to buy at the bottom should be well rewarded.That’s why I would buy FTSE 100 shares for a passive income in the current environment. While it is difficult to tell what the future holds for markets in the next few weeks and months, over the long term, the global economy should return to growth. Stocks should follow a similar trajectory.It is difficult to say with any certainty whether or not the same will happen to gold.As the price of gold is determined by supply and demand, if demand drops suddenly, the price could plummet. There’s a good chance that when things return to normal, investors will quickly lose their attraction to the yellow metal.Another factor to consider is the income appeal of FTSE 100 stocks. Over the past decade, the FTSE 100 has supported an average dividend yield around 4.5%. Over the same timeframe, investors have had to pay out money to own gold. Most gold funds demand an annual management fee, and owning physical gold can be extremely expensive.Gold and stocksPut simply, while FTSE 100 stocks might look less appealing than gold right now, the figures suggest that over the long run, blue-chips are a better buy than the yellow metal.That being said, nothing is stopping you from owning gold in your portfolio. Indeed, some portfolio managers recommend devoting 10% of your portfolio to gold and investing the remainder in stocks. For investors who are not sure about the right course of action to take, this could be a good option. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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