GOLD NOT AN INVESTMENT
Perception of gold as an investment is fundamentally flawed. No matter the detail behind the analysis, gold is not an investment.
measure of value
Gold vs. Stocks: Ratios Do Not Prove Correlation
GOLD VS. STOCKS
There is considerable extensive research and lots of articles written about gold vs. stocks. Sometimes, that is done in order to support or justify the argument that stocks are a better, long-term investment than gold. And the results seem to indicate that.
Except that gold is not an investment.
Gold is real money and a ‘store of value’. Its fundamentals have nothing to do with the fundamentals for stocks or any other investments. When gold is analyzed as an investment, it gets compared to other investments. And then the analysts start looking for correlations.
Some say that an ‘investment’ in gold is correlated inversely to stocks. But there have been periods of time when both stocks and gold went up or down simultaneously.
And, classifying gold as an alternative investment, or a safehaven asset, confuses people and creates unrealistic expectations. At least when comparing apples to oranges, we know that both of them are fruits.