5) Gold is a Bubble Investment
A recent Wall Street Journal survey on gold revelaed that “gold has lost its luster” and it has “lately…been a dud.” Just what do they mean, “lately”? This year, gold is down, but if you want to compare gold’s performance to stocks in late 2013, the precious metals beat stocks. From June 30 to November 1, 2013, silver rose 17.7% and gold rose 11.1% vs. 9.3% for the S&P 500 and 4.3% for the Dow. In the five years after the global crisis of September 2008, silver rose 110% and gold 77%, doubling the S&P 500 in the same five years, so there’s no sense in viewing these investment classes as an either/or choice. A balanced portfolio includes a lot of stocks and a modest gold position.