Gold as an average investment.
Investing in high dividend stocks in a responsible and diversified way, which is what I view here to do, is not speculating. Short term trading is and never confuse the two.
But Gold as sterile investment with no income or dividends could be bordering on speculating? And the price of gold even in shorter and longer time frames has not outperformed most real estate -or stocks. Au contraire. (Not talking about US housing of late, which was a bubble most all of us outside the USA saw coming).
Registered users here can see for free my latest documented stock model 6 month performance here, pls click on this link:
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Since then we have a new model porfolio posted for paying members. It too is outperforming to date so far.
One of my friends invested in a super gold fund this year thinking it was going to follow the gold price...it did not, it dropped for him -32%, as they fund hedged positions. (superfund.com) A few years ago I bought a gold stock, it went down as the company shorted the yellow metal. Gold has a place in most investment portfolios' for sure, as a way to diversify and compliment. But its not the hot nouveau way to riches the many gold bugs acclaim. Surely it will hold upt against a falling US$ and then some, but I think there are so many other more profitable ways in doing this.
Anyway, this year, anyway you slice or dice it...stocks have hugely outperformed Gold which perviously hardly reacted to the global crisis. Many bought gold with the idea it would be insurance if there ever was a financial or other major crisis, there was, and it basically yawned. Now with global economies recovering it seems wiser to me to bull ride the returns around profitability via companies’ stocks, then to keep expecting Gold will race higher, a speculative call.
Best Regards,
Paul Renaud.
