This article looks at 30 Dow Jones constituents and physical gold and silver and determines the risk -return ratio of each. Send it off to your financial advisor for his edification.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
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If you had invested in gold in 2004 you would have earned about 10.4%, annualized. I am writing this article, though, to say that you should not consider gold to be a good long-term investment and you should not have a significant proportion of your portfolio in gold. Let me explain. Read More »
A short time ago I started looking at the question: “Is gold an effective hedge against a financial crisis?” Having studied the question in more detail, I find the answer is no, gold is not an effective hedge against a financial crisis. Here’s why. Read More »
…Hype, fear and outdated monetary theories simply aren’t enough to support the price of gold. Every finance and economics text book teaches that gold is basically an inflation hedge, and without inflation gold is simply a useless piece of yellow metal. Either the gold bugs are right or the Fed is right, and my money is on the Fed.
Some market commentators are touting gold as a great portfolio diversifier, convincing investors that the precious metal could benefit their portfolio but there may be better alternatives than gold if the motivation is to find a hedge for economic uncertainty or political unrest. Read More »
We can devise logical scenarios as to what the price of gold should or should not do, but gold doesn’t always follow the plan. To paraphrase an old Jewish saying: “Man plans. Gold laughs.” Read More »
With the gold price in dollars breaking decisively the 200 day moving average but with volatility across a broad range of asset classes close to, or at, historic lows…this article looks at what patterns occur in equity and gold prices during both up and down trends and how to adjust your portfolio accordingly. Read More »