The Wall Street Journal: “The Case for and Against Gold, Don’t Buy”

“Gold is a gift; not an investment” advises Lubin Professor Lewis J. Altfest in an editorial appearing in the March 14 issue of The Wall Street Journal.

“Gold does look beguiling when the world is full of fear or concerned about a coming bout of inflation,” writes Altfest. “To some, that may sound like today’s difficulties. To me, that is rearview-mirror investing.”

“It’s hard to beat a solid gold piece of jewelry as a gift,” writes Lubin Professor Lewis J. Altfest in a Wall Street Journal editorial on March 14.

“And if you want to escape a country in turmoil with closed borders, a gift of a few ounces of gold will work wonders.  Fundamentally, the problem of gold as a portfolio investment is that it isn’t a real investment.  Real investments are stocks, bonds, income-producing real estate and private businesses, all of which, except for bonds (which produce interest instead), produce profits.  These are paid out as income in the form of dividends or are reinvested and grow.

“In contrast, bullion just sits there hoping to look attractive.  Since the price of gold is not supported by anything other than the mood of investors, its value can plummet just as quickly as it soared.”