Investing in Gold?

            

What type of gold investment would you think of? If you were entertaining such an investment.

You can trade gold as a commodity, as many do. At times, even governments trade, impacting short-term supply/demand, and prices..

                     

Want an inflation hedge? Sorry. For 25 years, from 1985 to 2010, consumer prices went up a bit more than 200%. Yet, during this time, gold prices were off by about 20%. There have been further rises, and declines.

                     

Want to head for the hills in an emergency? Gold bars are too heavy; rare gold coins would do it. But try this only in an dire emergency.

                     

Need a weakened dollar hedge? Gold is still not a panacea. It offers no earnings. And has storage and insurance costs if bought outright.

Gold isn’t too bad when interest rates are low, but proves costly when interest rates rise. And you can be sure interest rates will go far higher as inflation becomes  an economic factor for the Federal Reserve’s attention.

Moreover, higher interest rates generally spell a stronger dollar, and more pressure on gold. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)