Commodities

We continue to get asked about our opinion on investing in gold.  We are in absolute agreement with this quote that I found today that answers the question:

Commodities are not an investment.  An investment by definition is either current income or a stream of future income.  When you buy a commodity, you have to be assuming that you are going to be able to sell it at a higher price to someone else, because it has no income.  Thus, it is not investing – it is speculating.

Barton Biggs, Diary of a Hedgehog