Monday, April 16, 2012

Is it fair to characterize gold bullion as an investment?

Is it fair to characterize gold bullion as an investment?


WHY BOTHER investing? Five years into the financial crisis – and more than a decade after the US market hit its big top in real terms – you might well ask. Especially now that cash, bonds, Treasuries and stocks pay between zero and sweet nothing in yield, just like gold bullion.
The aim if not the outcome of investment is simple, however. "Investing [is] the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power – after taxes have been paid on nominal gains – in the future," as Warren Buffett wrote earlier this year to his Berkshire Hathaway shareholders. Read more