Tuesday 16 April 2013

I Am Not a Gold Bug

First of all a confession. I generaly hold conservative points of view when it comes to politics. I would like to see smaller government and lower taxes. One view that American conservatives seem to adhere to is Sound Money and the Anchoring to Gold. I part ways with this belief.

I can not understand investing in a yellowish hunk of metal that has little functional value. Gold, in my opinion, is entirely a speculative commodity. If you buy gold directly or on the futures market you are basically hoping to sell your holding in gold at a higher price. Gold does not generate income and therefore is not a productive asset. This is essentially the position of an investor named Warren Buffett.

I bring up this issue since gold got crunched today and it looks like 1980 to 83 all over again.

No comments:

Post a Comment