Gold is no Investment!
With August gone, investors have to be breathing a little more easily, as the month has proven to be extremely volatile for investments of all sorts. The 30-day stretch has investors wondering what to do next.
However, not all seem to be of the opinion. Representatives from the Vanguard group have issued a statement that denounce the investment scares as mere speculation born from the continuing stall of the economy, as well as the vague responses coming from the White House. The Vanguard people have further stated that the month’s volatility has little to do with the long-term value of investments made and that a much deeper analysis is called for to make any sort of viable prediction.
Representatives from the prolific group have also underlined that while an average investor might take August figures as a call to drastic action; experienced and battle-worn investors will likely choose to simply wait out the unsure times. “While we may very well be heading towards a second Recession, it is simply unreasonable to expect long-term investments not to take drastic dips once in a while. It is simply the nature of the business, and no amount of speculation will give you a crystal ball view into the issue. On the whole however, stocks will do fare much better than bonds,” said the Vanguard group statement.
The group has also gone on to state that in the tough economic times, some investments are obviously more profitable than others. Gold, for example has been dismissed as no investment in the first place, due to its lack of inherent return value. Corporate stocks have also been deemed more or less a toss-up game. Instead, the Vanguard group has suggested making long-term investments into proven stocks. Crude oil and crude oil investment has long since made its place among some of the sure-fire stocks that tend to weather the fluctuating extremes that the market undergoes during recession.
The group’s statement was concluded by advising less-experienced investors against delving into high-frequency trading, which seems to be the new trend, as its volatile high-stakes nature is too hard to handle and predict for an average investor.