5 Reasons NOT to Invest in Gold

Reason #3: Gold Is in Limited Supply

Related to manipulation, the simple fact is that there is a limited supply of gold.

Those who want to return to the gold standard fail to appreciate that at some point a lack of supply could have disastrous consequences
in a gold-based system.

Wars are fought over commodities in short supply. In addition to fighting inflation, the Federal Reserve is also charged with
promoting a stable currency. With gold, prices can be far from stable.

Though the dollar is not perfect, the system is much more preferable than to hinge our bets on gold. Look at gold mining towns
that went boom and bust when supply eroded. The same can happen on a global scale.

Gold is not the panacea that the proponents make it out to be.

NEXT: Reason #4 – Gold Was Dead for 20 Years