Is gold a bad investment?
Gold does not always shines, but you wouldn’t know that from surging worldwide interest that has turned the yellow metal red-hot. Gold has become highly prized bling, as anxious and astute buyers…
Gold does not always shines, but you wouldn’t know that from surging worldwide interest that has turned the yellow metal red-hot.
Gold has become highly prized bling, as anxious and astute buyers alike, from hedge-fund players to central bankers, flock to the “currency of fear.”
Gold’s feverish run has made a lot of people a lot of money, and though the rally has taken a breather in the last few months, there’s no shortage of flag-waving supporters who claim gold is on a march to US$2,000 and beyond. After all, gold is still well below its 1980 peak, when it was worth around US$2,300 an ounce in today’s dollars.
Certainly there are reasons to own gold in a diversified portfolio. Yet gold isn’t like a stock or a bond. It offers no income, no dividend, and no earnings. It is considered a store of value, an alternative currency that’s safe beyond reproach, but it is not cash in the bank, or even the mattress. Gold has no untapped intrinsic value; it is worth only what people are willing to pay for it. And lately, many people have been only too willing.
Original Source
http://www.marketwatch.com/story/why-gold-is-a-bad-investment-2010-11-12
