Investing in Gold: a Golden Vision?

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The price of gold has had its biggest fall in 30 years, which raises some questions about its status as a safe haven.

Australia Strategy

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In case you missed the news this month, the price of gold has had its biggest fall in 30 years which has raised some interesting questions about its status as a safe haven. Even more interesting than its sudden loss of appeal and sharp fall in value was the revelation that since 1980, after adjusting for inflation, gold has actually produced a Nil return. In the attached article from Jim Parker (see below) he outlines the comparative returns of gold, Australian and International shares over the past 30 years and concludes that by investing in gold, you have worn extraordinary volatility, sudden and unexplainable price drops and had no protection against inflation for no return whatsoever.

With a big loss in the space of a few short days, we hope that many of you did not follow the advice of those writing about the virtues of gold right up until last year. It doesn't take long for the tide to turn, though as can be seen in this article, fear factor' often experienced by investors, which is more often than not perpetuated by the media who focus on the negative.

Finally, and for some light entertainment, this piece looks not only at the fall in the gold price, but how the panic has spread to cupcakes and now chicken wings!.

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Article by Jim Parker

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