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The root issue I have with gold is that its price is based not on the present value of future cash flows but supply and demand.
WSJ: The Experts: Should the Average Investor Buy Gold?
The theoretical value of a company is the present value of all future cash flows that will accrue to shareholders.
FORBES: Okay, Place Your Bets: Is Apple Really Worth More Than Microsoft?
It states that the value of any investment is the present value of all future cash flows discounted by a risk factor.
FORBES: Value Stocks and Dividends
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