With gold hovering near record highs, some experts have warned against diverting savings into the precious metal. In early April, gold reached a new record price just shy of US$2,400 per ounce, and while the price of bullion has since slipped, it has still advanced more than 12 per cent this year.
With prices high, hype surrounding the commodity has remained resilient, and retailers like Costco (COST) are even getting in on the action. According to a report from Wells Fargo, sales of gold bars brought in US$200 million per month to the company.
Some experts, however, warn against getting heavily involved with gold. “We’re not huge fans of it,” Colin White, portfolio manager and CEO of Verecan Capital Management, told Yahoo Finance Canada in a recent phone interview.
“For me, the definition of investing is you buy something that is making money. If I buy shares in a business that’s making money, I know I get a piece of that… You buy gold, you’re hoping somebody buys it from you at a higher price later. In our world, we would describe that more as speculation.”
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