~ Un-Common Sense In An Irrational World: We Challenge the Conventional WisdomTM ~
GOLD SURPASSES A RECORD $4,000 A TROY OUNCE
Gold surpassed $4,000 a troy ounce for the first time on Tuesday. It was trading in excess of $4,000 today, as shown in the chart below. This is an indication that investors are rushing for safe haven investments in gold and other alternative assets during this time of economic uncertainty.
But, it’s important to keep a realistic perspective on the price of gold. Over time, gold has not been one of the best performing asset classes in which to invest. In fact, according to Jeremy Siegel’s Stocks for the Long Run Indices Chart (shown below), it has been near the bottom in terms of performance when ranked against other asset classes.
It is tempting to want to jump into an asset class when it has had good near-term performance, like gold has been having this year. But it is best to keep your perspective about any asset class; avoid the “Following-the-Herd Mentality”; keep your long-term investing goals in mind; and don’t succumb to FOMO (the “Fear of Missing Out”).