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Over a century ago, the call of lucrative gold discoveries in California
attracted tens of thousands. Today, as the focus of the investment
world turns to gold and shares in gold mining companies, a new gold
rush has begun.
Because gold is negatively correlated to most other major asset
classes, it often reduces a portfolio's volatility, and lower portfolio
volatility leads to higher returns.
The value of equities comes from evaluating a company's earnings,
growth, and debt.
The value of gold is determined by much broader factors, such
as world supply, industrial needs, currency values, and inflationary
expectations.
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