Fundamentals have changed, page-14

My logic, inflation moves higher meaning investors need to find assets that yield higher and higher returns. What is the annual yield on gold? ZERO. In an environment where you need higher returns to keep pace with inflation why buy gold? As an example lets saying inflation is running at 3%. You can put your cash in a term deposit that say returns 2-3% or you can buy physical gold which has a yield of 0%. Which one would you rather?

The actual yield on physical gold is negative if you are storing in a bank vault and paying the holding costs each quarter.

s.loeb