An often cited negative about gold is the inability for investors to value it, unlike traditional investments such as stocks and bonds.
A company’s revenues and earnings can be forecast to arrive at a valuation multiple. A bond’s cash flows can be discounted to come up with a present value. But since gold bullion does not produce either, investors often struggle with assigning a fair value.
Some will look at technical analysis, others fundamentals, interest rates, or expected inflation—but unfortunately there’s no correct answer, and attempting to time the market when choosing an entry point is extremely difficult.Read More