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Myth: Gold is not a consistently sound investment


Although the evidence is irrefutable and overwhelming that gold, precious metals and hard assets in general WILL increase overall return AND reduce risk in a properly devised investment portfolio, there are still some out there who have this myth that gold is not a good investment. I actually heard one such so called investment guru read an email from a listener who simply asked if gold was a good investment and be called “stupid!” Can you imagine? I was driving in my car when I heard him yell that at the poor guy who asked a great question – he even repeated it: “Stupid!”

I almost drove off the road. You see, in order to pass mastery level academic exams to become a certified financial planner, or certified financial analyst, one of the things you learn is how to construct portfolios that minimize risk while simultaneously maximizing return. This is no guess work. In fact, I remember sitting for one such exam, and as the proctor looked at her watch and said, “Go”, I opened my exam booklet and saw on the very first page - staring right at me - probably at least 50 different mathematical equations. And to pass that exam, I had to use those equations to devise investment portfolios that had statistically measured risk and return probabilities based entirely on math. Opinion did not count. No crystal balls, tea leaves or guess work here.

And that math – as recorded in all such academic textbooks – shows that gold, precious metals and hard assets will ALWAYS reduce risk AND increase return when combined with the other appropriately correlated asset classes.  The Christian community in particular, as well as the general population need to quit looking at personalities and myths to find appropriate investment options, and instead look to calculators and statistics! Because gold IS always a wise investment when it is positioned appropriately in an investment portfolio. And that FACT is a myth that just got busted!

Posted by stephen@recalibratetoday.com at 11:38 AM

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