The title is a comment made by an FT reader here.
Gold was never an “investment”. It has always simply been an insurance policy against such unlikely events as major wars, galloping inflation, currency devaluations, or (if you are Russian) asset freezing and confiscation. The insurance policy you have on your house probably has a better yield!
Gold gamblers are not investors.
We have carried out due diligence and research on gold. The problem with gold is the lack of yield. You buy it on the basis it rises in price. It means over time you need to keep pace with inflation and make a profit. Whilst some individuals have made money from trading gold, many have not. Many have not even kept pace with inflation. Without a yield, the risk rises with so much dependence on capital growth.
If you do buy gold, what percentage of your portfolio do you allocate? If it’s say 5%, is it worth the effort?
Is there a logical reason to own gold and is there any process that helps guide you when to buy or sell?…sadly neither!
If you do choose to buy gold, always think of it as speculation and gambling. Never investing.