Why Does Harvard Economics Professor Call Gold a High Risk, Highly Volatile Investment?

In my continued exposure of those who write articles that misrepresent gold I’ve run across an article written recently by former Ronald Reagan chief economic adviser and current Harvard Economics Professor, Martin Feldstein called “Is Gold a Good Hedge?”

I will dissect Feldstein’s article that is full of what I believe to be deliberate misinformation to confuse readers as to what gold truly represents in today’s economic and investment climate.

DOW 10,000 In 2009 Is NOT the Same as DOW 10,000 In 1999 – It Buys You 23.8% Less Today

“DOW 10,000 (version) 2.0,” but is it really a better version, or even the same version as DOW 10,000 of 1999?

What most don’t realize is that the DOW 10,000 of 3/12/99 was worth more in terms of purchasing power than DOW 10,000 10/14/09 by a whopping 23.8%. Why? Because the dollar index has fallen 23.8% since March of 1999.

How Gold Would Be Used In Hyperinflation

Gold, during the time of a hyperinflation scenario, unlike paper money, would be “perceived” as having value as it has for centuries. The U.S. dollar however, wouldn’t have any perceived value under this scenario. So a better question to answer would be, what would you use as a medium of exchange sans gold since no one will want U.S. dollars?

Digger’s Friday Triple Play

Doug Digger Eberhardt’s Top 3 Articles and Posts of the Week

Budget Deficit Tops $1 Trillion for First Time
Bank of Wyoming Is the 53rd FDIC-Insured Institution to Fail in the Nation This Year
Why Obamacare Can’t Work: The Calculation Argument

Challenging Financial Advisors on the Need to Diversify Into Gold

What financial advisor’s need to do is prepare their clients for the coming inflation as a result of all this government spending. What financial advisor’s need to do is diversify their clients into gold.