""Just because something's a store of value doesn't mean it creates value. You buy a rock of gold, it's still a rock of gold like 2 years later.""
""U.S. corporate profits reached $4,352.1 billion in the fourth quarter of 2025, with year-over-year growth of 9.6%. A bar of gold sitting in a vault generated none of this.""
""For investors with 20-year-plus time horizons, hedging with gold isn't necessary because the recovery math works out.""
Gold is often viewed as a safe hedge, but it does not generate cash flows or profits like stocks. Stocks represent ownership in businesses that create value and compound profits over time. U.S. corporate profits have shown significant growth, while gold remains static. Over long time horizons, equities outperform gold due to their earning power. For long-term investors, gold hedging is unnecessary as equities can recover from economic downturns, demonstrating the importance of time in investment strategies.
Read at 24/7 Wall St.
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