Which of the following is NOT a reason why investing in gold might be considered

Question

Which of the following is NOT a reason why investing in gold might be considered "nothing but speculation"? A. Investors are guessing that the price of gold will just keep rising as the economy continues to 0 B. If inflation does begin to increase, then investing in gold will pay-off as gold is a good C. Prices of commodities tend to fluctuate widely overtime and since gold is a commodity, the grow investment in times of high inflation. price tends to move up and down frequently chance inflation will rise is basically "speculation." 0 D. There are no changes to the fundamental reasons to invest in gold and just investing on the

Explanation / Answer

Right answer is (B)

investing in gold is considered as good hedge against rising inflation. thus, it would not be matter of speculation. Inflation reduces the value of currency, gold price tends to rise in face of inflation. Hence, gold is considered as best alternate during inflation.

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