Is it Better to Buy Gold Bullion or Gold Shares?

In the days of yesteryear, long-term investors bought shares because of growth potential and in particular for the income they would earn from shares and its growth. The share price would then focus on dividends and potential dividends rising or falling in line with such growth or lack thereof. Capital appreciation would follow. Present and future Dividend Yield was usually tempered [as was the share price] in the booms and busts, by relating it to the average 5 to 10 year fixed interest rate yield. This was because one had to ask, ‘what would the advantage be in investing in risky equities, when one had the benefit of risk-free fixed interest securities’. The potential of the equity shares could then be related to the state of the economy insofar as it related to interest rates. (more)