Four Reasons Why Gold Is A Bad Investment – Forbes

Before you gold trolls start hurling cyber-insults at me, I have to confess upfront that I don’t mind if anyone owns gold. I have a few coins myself.

But I don’t think gold is a good investment. There are lot of people getting scammed into buying it in various forms. With the recent presidential election, the fear factor is once again in play.

My reasons for not seeing gold as an investment are straightforward. Unlike a bond, the metal pays no interest. There is no dividend. It may not protect you against the worst forms of inflation, which are often in health care. And there is no implicit guarantee that it will appreciate in value.

I know this describes most investments. But at least if you invest in a basket of major stocks, although not guaranteed, you are likely to receive dividend payments. If you buy gold bullion or coins, this is not the case… Read Full Article

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