Misconceptions About Investing In Gold
Gold does not generate current income because it’s not productive. As a precious metal, it is a commodity. This does not generate any profits like a company in which shareholders invest.
Only gold protects against inflation
It is true that gold has an interaction a so-called correlation with inflation. So it offers some protection against inflation.
Gold isn’t the only investment you can use to protect against inflation. Real assets such as real estate or inflation-protected bonds are a good alternative.
The value of gold will always remain
Gold is one of the oldest means of payment and is accepted all over the world. This is an important advantage. Gold reserves are also limited worldwide, the precious metal will most likely always retain some real value.
There is no guarantee that gold prices will break records in the future. Instead, investors must hope that demand for gold will continue to rise in the future. If it falls, so does the price.