Wednesday, March 24, 2010

Gold's current consolidation phase to continue as the market looks for new direction.

Many market commentators argue that investing in gold is a waste of time especially since it does not pay interest and remains inert. This statement is very misleading. The issue of interest has no relevance. No one has ever invested in gold in order to receive interest. While gold is a precious metal as well as being a form of global currency, it is also a commodity. And, the reason why investors buy commodities is not for an annual dividend payment, but for a return on their investment that occurs as the price of the commodity appreciates. (I have not heard analysts say don't buy corn because it doesn't pay an interest). And, in many instances this rate of appreciation can be truly spectacular giving investors massive returns. (more)

No comments:

Post a Comment