Bonds, options, and stocks are all financial instruments, and someone else’s liability. The owners of these financial instruments gives up their money and risks a loss of their principal for a certain period of time in return for a yield/profit.
Physical gold bullion is not someone else's liability. A holder of physical bullion could lease out their gold and generate income, but they seldom choose to do so as it is precisely the safety of preserving wealth in real terms without risk to capital that savvy investors seek in uncertain times.
Geir Solem
www.thegoldvault.blogspot.com/
Copyright (C) 2010 all rights reserved
Historical charts, perspective chart, fundamental analysis of precious metals and insight into the precious metal market.
No comments:
Post a Comment