Gold is starting to correct. Unlike the metal itself, blue-chip gold stocks have delivered an average annual compounded return of about 12% over the past 50 years. And they’re not correlated with the broad market, which gives your portfolio higher returns with less volatility.
But gold has more than tripled in the past five years. Some say it is a myth that the Fed is printing money. And hence, the amount of currency in circulation is not changing. That The Fed is buying Treasury securities to lower long-term interest rates and stimulate the economy. There is also an additional problem with projecting Gold Price. Since Gold doesn’t pay interest like bonds. It has no earnings or dividends like stocks. It can’t house you or provide rental income like real estate. So there really is a projection problem when it comes to where gold should be trading. .. or so, it seemed.
Well- I beg to differ... in my opinion, the long term trend still looks pretty.
No comments:
Post a Comment