Gold Isn’t Always the Buy that Sales Ads Tout

Gold investment sales ads always mention central bank purchases but, of course, never the sales of country central banks who sell gold for needed cash.

And ads fail to give fundamental facts about gold and inflation. In the not too distant past, the 1980s, with average inflation about 6% a year, gold values dropped by about 50%.

                           

Gold has actually little relation to inflation. Instead, gold pricing is effected by any negative real interest rates and, importantly, any financial panic or fear.

So, only when interest rates run almost zero, gold has an advantage. Remember, gold pays no dividends or interest and competes with investments that do.

Further, we seldom suffer real economic panic or fear conditions.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)