People walk by a gold jewelry store in New York City. Gold’s role as an alternative currency will evolve and its price will reflect inflationary expectations. —AFP
I AM not a gold bug. Gold is an artefact from early history. So much so it is deeply rooted in the collective human consciousness.
The last time I wrote about it in this column was two years ago on Jan 16. Then, as now, I am not the most optimistic about gold as an investment. But I am a realist. Over past 50 years, capital gain on gold averaged 2%-5% annually over each decade. Stocks were a better investment about double to three times the gold “yield.” This is not surprising since gold has no real intrinsic value. It is sterile, making it difficult to value can't assign a credible PE (price-earnings ratio).
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