by David Schectman, MilesFranklin.com:
Last week I talked with a man I know who reads our newsletter. He bought most of his gold in the early 2000s when gold was in the $300/oz. range. “Gold has been a terrible investment,” he said. “Think of all the interest I could have made on the money I spent on gold.”
“Gold isn’t an investment, it’s an insurance policy,” I said, “You may need it some day.”
He replied, “I don’t need it for insurance. I’ll never have to sell it. I’ll leave it for my kids.”
I said, “Will you change your mind when gold is $3,000 or $5,000 an ounce? You bought it at $300 and it’s up three to four times. That certainly beats any interest you would have earned over the last decade.”