Gold Is Good?

Is investing in gold a good idea?

QUESTION: A listener says a lot of people are asking about gold investments.  Is this a good idea?

ANSWER: It’s a bad idea to invest in gold.  Everyone’s talking about it right now because gold is really high.

In the book Stocks for the Long Run, Jeremy Siegel has a graph that shows what would have happened to a single dollar invested in gold, bonds and stocks since 1801.

    One dollar invested in bonds in 1801 would yield $13,975 today.
    One dollar invested in stocks in 1801 would be worth $8.8 million today.
    One dollar invested in gold in 1801 would be worth $14 today.