Dave gives some facts and examples as to why gold is such a bad, long-term investment.
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.