by Axel G. Merk, Merk Investments
Is gold, often scoffed at as being an unproductive asset, more productive than cash? If so, what does it mean for asset allocation?
[…] There are investors that stay away from investing in gold because it is an ‘unproductive’ asset: the argument points out gold doesn’t have an intrinsic return, it doesn’t pay a dividend. Some go as far as arguing investing in gold isn’t patriotic because it suggests an investor prefers to buy something unproductive rather than investing into a real business. In many ways, it is intriguing that a shiny piece of precious metal raises emotions; today, we explore why that is the case.
Investing is about returns…