While investors will speculate on gold mining companies ability to produce more gold based on the productivity of the mines they operate, there is a way for an investor to profit when the company does nothing but normal business activities.
When most people talk about interest rates today, they realize the lowest rates can go is to zero. Consequently, they believe at present the bottom is almost in for interest rates and the only thing the future holds is higher inflation and interest rates. But since the economy has not yet recovered, what can the Fed do to stimulate the …
Let’s face it. With yield on treasuries and CD’s so low, those who have lived off of the interest from their various investments have seen their income fall considerably. To prevent having to dip into principal and deplete one’s savings, investors are now choosing to put their money in financial instruments that offer a better return.
But is gold still a good investment?