Gold vs. Stocks: A winning investment strategy revealed – Global Market Pulse News
The most famous value investor Warren Buffet is well known for avoiding gold. He once said, “gold is a way of going long on fear”. He also said, referring to gold, “it won’t do anything…except look at you”. His first quote means that gold only does well when investors are fearful. His second quote means that gold is fundamentally an unproductive asset.
In fact, both these statements are true. During times of market turmoil, gold does well and the stock market crashes. Gold is indeed unproductive, in that it generates no income or dividends. And unlike other commodities that are used to produce goods or food, most gold is stored in vaults. But does this mean gold should be avoided? No, because the data tells us the…
