Gold (GLD) has been a dependable store of value for centuries. Gold has served as a safe haven, shelter, way to store wealth, and launder/hide money from governments throughout history.
Bears have long argued that gold has little to no intrinsic value. Keynes is commonly cited with his barbarous relic quip. But that's not an isolated view, most modern economists view gold as an out-of-place holdover from a bygone era.
And yet, gold has defied modern financial thinkers. It has continued to retain its value and, in fact, went on a gigantic run from the turn of the century through to 2011. While gold has performed poorly since then, it continues to disappoint the gold is worthless crowd that has long predicted a return well back into three-digit per ounce territory.
Why hasn't gold lost its value in this new economic era? Simple. There's still great demand for a store… Read More …
