Provided by Michael Taylor of the Houston Chronicle:

A significant portion of the Financial Infotainment Industrial Complex dedicates itself to selling you gold, as an investment.

I’m here to tell you: Resist.

I have already written about the three other horsemen of your personal financial apocalypse: variable annuities, time shares and bitcoin.

The commonality of these four horsemen is that they are sold to credible people as “investments” when they are really the opposite of investments. All four act as a drain on your net worth.

Gold fails the fundamental test of what constitutes an actual investment…
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Gold and other precious metals are often seen as an alternative investment class, with similar standing to shares and property. It may be another asset, but I think it’s one of the worst for long-term growth.

Albert Einstein once described compound interest as the eighth wonder of the world, he who understands it earns it, he who doesn’t pays it. It’s a fantastic quote and it’s the reason why shares are the best to own in the long-term.

The key thing to remember with compound interest is that the asset produces profit and that profit can be reinvested into producing more profit.

Gold is a beautiful material, it has attracted people throughout the centuries. However, ultimately, it is just a shiny material. It doesn’t generate any profit, dividends or rent. It can’t compound if it can’t generate any money… Read Full Article