As the dollar value of gold heads for its biggest annual loss in 32 years, investors feel that the shiny metal has lost its sheen. With a loss of 29 percent (year-to-date in USD), it is the most underperforming investment asset of the year.
(This story appears in the 24 January, 2014 issue of Forbes India. To visit our Archives, click here.)
Very balanced and well considered review. More sophisticated western investors are well aware of the role gold plays in a portfolio especially in a global climate of unlimited money printing. The fact that inflation has not yet shown up in the US, does not mean it won\'t and many still advocate an allocation within the portfolio of at least 10% to gold and/or silver. Both are currently below the average cost of production (across the mining industry) and that should, as you rightly say, provide a limit on the downside risk in the long term.
on Dec 1, 2014