Money MythBuster: You NEED to invest in gold

Factors determining a successful investment in gold are extremely difficult – if not impossible for retail investors – to predict

Ruth Saldanha 30 July, 2019 | 8:00AM

 

 

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Mr. Morningstar Money Man:
Gold!
Gold!
Gold!

Gold recently hit a FIVE-YEAR HIGH. It’s a safe haven investment. AND it’s a hedge. So you should buy it, right?

WRONG.

Commodities like gold have no intrinsic value! Returns are governed by the balance of demand and supply, with a fair amount of speculation thrown in! These factors are extremely difficult – if not impossible for retail investors – to predict, so the chances of success are about as high as me finding Gammy's gold.

So stay away from gold, and focus on the fundamentals!

This myth is busted!

 

 

 

About Author

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca