Gold is at $1200, And Why It’s Worthless

Commodities are great in certain aspects but when it comes to precious metals such as “gold,” I don’t buy into it. Gold has reached a close of $1200, and many investors are in an optimistic view.

As investor you have to look at how it creates value. Gold has no value as far as creating income. It is just a metal that produces nothing. The reason gold has as much hype as it does, is because it was used as currency in the past. Therefore, all the value that comes from it is purely ambiguous. It has no true value.

As an investor, look for things that create value. That value will translate into income producing vehicles. Therefore, I’m not a big advocate of gold because it doesn’t follow my investment philosophy. If I were given a million dollars versus a million dollar worth of gold, I would be able to do more with the cash than the commodity itself.

Go for rich,

Ronald