GOLD,
HUH, WHAT IS IT GOOD FOR? It's down over 2% today. It's below where it was 5 years ago vs.
stocks that are up about 100% in that same time frame. Some advisors say Gold is a good hedge
against inflation and others like it as
a safe haven in scary times (and it sure has shined in some times like those). But why does it have value beyond the pretty
jewelry it makes? It doesn't earn
anything like stocks do (when companies generate profits) or like bonds do
(when borrowers pay you back your money plus interest). It has no intrinsic value other than the value
we attribute to it. Gold will have value
as long as people say it does. I just
don't want to own too much when they decide they no longer want to pay $1000
for a small chunk of metal.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
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