Economic investments are assets purchased with the intention of generating income or profit. When evaluating potential economic investments, it is important to consider factors like risk, return potential, liquidity, and contribution to economic productivity. Of the common investment options, gold bars stand out as a poor economic investment for several reasons. In this article we will explore why gold bars fail to meet the criteria for a strong economic investment.
Gold bars have little inherent return outside of price appreciation
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Gold bars produce no dividend or interest income
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In summary, gold bars are a poor economic investment because they have little inherent return and do not generate dividend or interest income. Other assets like stocks, bonds, and real estate provide greater income potential and contribution to economic growth.