The mainstream media is rife with investment “experts” who missed the 10- year bull market in Gold and Silver. These guys are now high fiving about Gold’s drop, like they’re geniuses for avoiding precious metals in the past.
Gold doesn’t produce cash flows or pay a dividend, it the manta for these folks. Too bad for them Gold has outperformed stocks on both a 10 year AND a 50 year basis. There are of course exceptions to this in the form of investing geniuses who use compounding to crush the markets… but given that most money managers don’t beat the market and Gold does… one has to ponder these things.
Sure, Gold doesn’t pay a dividend... but it doesn’t charge commissions, tell you to buy a garbage stock, back date options with its executive board, or commit accounting fraud either.
Gold doesn’t go out of business. It doesn’t get insider information and use it against you. Gold doesn’t make money taking the other side of your trades. It doesn’t front-run your stock orders.
Gold also doesn’t create artificial bids in the market. It doesn’t cause flash crashes. Gold doesn’t use your funds to bail itself out and then parade around fundraising for politicians.
Gold doesn’t blow stock bubbles. It doesn’t manipulate data. Gold doesn’t control interest rates to benefit the big banks at the expense of everyone else. Gold doesn’t lie under oath, nor does it channel the public’s money into foreign banks.
Also, you cannot print Gold. Gold doesn’t violate property rights laws or steal your deposits. Indeed, Gold is essentially one of the few forms of investments that gets your capital OUT of Central banker hands.
One wonders how things would go for Cyprus individuals who had their deposits in Gold in their own custody as opposed to sitting in the award winning Cyprus banks.
This concludes this article.