Reasons NOT to Invest in Gold

It's hit a record high and investors have poured billions into funds that track the metal. But should you invest? Probably not.

Holly Black 14 August, 2020 | 1:59AM

Gold bars

It’s little surprise that gold is attracting a lot of investor attention. The price of the lustrous yellow metal recently hit a record high and it's never been cheaper to invest in the asset. This isn’t the first time that investors have found themselves drawn to something shiny, however. With a reputation as a safe haven at times of uncertainty, gold tends to rise at times when other assets are falling.

Mike Coop, portfolio specialist at Morningstar Investment Management, says: “People have a deep rooted, emotional response to gold. You can see that in how we refer to it in everyday language: good as gold, gold-plated, gold-class. We think of gold as safe, secure and as being the best and that impacts how people view it in investment terms too.”

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About Author

Holly Black  Holly Black is Senior Editor, Morningstar.co.uk

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