by Dan Popescu, Gold Broker:
The most misunderstood so-called “investment” instrument is gold. Not only by the general public, but even by investment analysts. Even very recently I heard an analyst on CNBC saying gold is valueless, since it doesn’t declare dividends or produce any income. I heard this kind of argument in the ‘90s, in reference not to gold, but to technology companies. I could not understand then how someone could look at a company like Intel or Microsoft and say such a thing. These were not uninformed investors but investment professionals with university degrees in finance or economics, an investment certification and an MBA. It made no sense to me. Both companies were already making a lot of money. Finally, one day, one of them completed his statement by saying that it cannot fit the dividend discount model used by the investment profession to calculate value.
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