>> >>Money under the bed is not an investment. Gold is not an investment
>>
>> Why do you say that, particularly about Gold?
Only because there is no return. I think I might be parroting something Warren Buffett said.
>>I remember in the 80s when I
>> was in Turkey, there were many people keeping USD & GBP in boxes under their
>> beds as a play against inflation and devaluation.
The currency thing is just a bet isn't it? Could be a hedge I suppose, is that a bet? And you would probably hold gold for similar reasons
>. Also, since the value of Gold can
>> also go up or down is it not an investment?
See above, and isn't it a bet on the price movement? If I buy, say, City of London Investment Trust, the price can also either go up or down. But regardless of that, buying at today's price I can have a reasonable expectation of a solid 4.8% yield, so even if the price goes down if I reinvest my divs I will be able to buy more shares that if it hadn't to add to my holding and increase the average yield assuming they can maintain the div. If I have invested for income and spend the income then in the short term I don't care about the price. It has a return, it earns something, which to me makes it an investment.
>>
>> For your interest...
>>
>> www.investopedia.com/articles/basics/10/investing-or-gambling.asp
I read part of that as saying if you have a rationale for why your purchase will increase in value then it's an investment. Seems reasonable. So if you think the markets are going to hell and people will buy gold as a haven, then maybe it is an investment.
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