Gold is very much ‘betting on debasement’ investment; which given current trends is not entirely irrational. Low interest rates are a scourge and are facilitating this unfortunately
It may be good for balanced portfolio, but from value perspective, it is not really good as it does not produce any cash flow -> it is hard to evaluate.
What do you think about companies that generate cash flows whose size depends on assets that are intrinsically non-productive, such as mining, drilling, and similar businesses?
Very well said — I couldn’t agree more with your perspective. Excellent article.
Thank you! Feel free to restack, it would help us a lot!
Gold is very much ‘betting on debasement’ investment; which given current trends is not entirely irrational. Low interest rates are a scourge and are facilitating this unfortunately
It may be good for balanced portfolio, but from value perspective, it is not really good as it does not produce any cash flow -> it is hard to evaluate.
That is why it’s such a risky asset! You don’t get any cash flows from it, you actually have to pay someone else to store it and insure it for you
Exactly. Well said.
Great article, I completely agree with your view.
What do you think about companies that generate cash flows whose size depends on assets that are intrinsically non-productive, such as mining, drilling, and similar businesses?