Q. I have heard that because of falling returns on ‘normal’ investments, some investors are putting money into Gold. Is this sensible?
A. We believe in asset class investing, and do not believe that Gold is in itself an asset class. This is because we think that any asset class must have a way of providing a reliable expected rate of return.
The price of Gold, like other commodities, simply fluctuates with supply and demand, and because it produces no income it tends to be volatile in price.
It is also important to realise that returns on Gold from the 1970′s onwards have not been as high as equities. That is not to say you should not invest in gold, we just recommend you do your research in full before you invest.
We hope this helps!
