I had a quick look at the August Economic Journal over the Xmas break, and specifically at the article by Barro & Misra, ” Gold Returns”. They argue that the facts (1836 – 2011) suggest that Gold is not a long term extraordinary good investment, offering a long term rate of return of about 1% which they categorise as the equivalent of the standard risk free ROI although its volatility is much higher since 1971 when the US quit the gold standard. They also argue that it is not a great hedge against macro-economic disasters. It would seem it’s like everything else, you need to get it right when to buy and when to sell.

GOLD

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: