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Thursday, January 21, 2010

Stocks that are beter than gold

Stocks That Are Better Than Gold
It's tough to beat gold. There's no better medal to win in the Olympics. For many people, there's no better component of jewelry. And when it comes to investing, quite a few folks think that other investments just aren't as safe or lucrative.

They're wrong.

You might think gold is safer because it's a tangible item that exists in limited quantities, and because piles of gold bars in a vault somewhere won't be worth nothing anytime soon. Think again.

After all, stocks are similarly tied to actual bricks-and-mortar companies. Alcoa (NYSE: AA) stock represents plants, employees, and technology that churn out aluminum and other products and services. Dell (Nasdaq: DELL) stock is tied to people, buildings, technology, and equipment to custom-assemble computers, among other things. It's not likely that those kinds of assets will suddenly become worthless, or that the demand for energy or medication will shrivel up. Great companies tend to hold their value.


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