Gold’s Future Glitter is Anyone’s Guess

Very uncharacteristically, I’ll keep my word count under 200!  A news program carried an ad which irritated me, so here goes:

TV ad:  announcer noted that gold has gone up 400% in the last decade and asked the viewer if he wouldn’t want some gold in his portfolio.

My Answer:  Sure – a decade ago!

Reminder:   investment institutions have been required for a number of years to inform the reader/viewer that “Past performance is no guarantee of future results.”  This is true for all investments, regardless of how speculative.

Outlook:  Granted, gold may very well rise again if we start to lose the tug-of-war between the combination of rising federal debt (money printing) and food/ fuel prices versus suppressed employment/spending which has been surprisingly even-sided for years.  (low inflation)

However, the public should not be mesmerized about the “400% over the last decade.”  That’s a rear-view mirror look.  Keep an eye on the road ahead.  This is investing, not driving.

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