Alok Swain

Money Magazine's 'Advice' Indicates It's Still Early for Gold

People consider gold not paying a return as a negative.

I consider that kind of thinking as fallacious.

I rather consider, the fact that gold doesn't pay any return to the person holding it (and still the person wants to hold it) as a positive for gold. What most people fail to understand is that gold is of such high standard that it can get away with not having to pay a return. Other investments (including Government Securities) have to pay a return for us to consider it worthwhile to invest in it, thats so because they are all of inferior standard in comparision to gold. The more risky an investment the more in terms of yield (or return) has to be paid to the investor to make it worthwhile to continue holding it.