February 10, 2016
The Truth About Gold As an Investment (What Bubblevision "Experts" Conveniently Overlook)
By Tyler Durden
Zero Hedge
Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment.
These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong.
To whit…
Gold has absolutely CRUSHED stocks since 2000. During this period, we’ve had two of the biggest stock market bubbles in history. Yet Gold’s performance has made stocks’ performance look like a flat-line.
Put another way, Gold has demolished stocks during a period in which the Fed was printing money by the trillions of Dollars. The Fed and other Central Banks may want to boost stocks, but Gold is the biggest beneficiary from their insanity.
However, Gold’s long-term outperformance of stocks is even more incredible.
Most “analysis” of Gold as an investment runs back for 100 years or so. However, this analysis is deceptive as Gold was pegged to major currencies up until 1967.
Of course, the geniuses in the media overlook this little tidbit because once major countries began to de-peg their currencies from Gold in 1967, the precious metal has absolutely DEMOLISHED stocks in terms of performance.
Since 1967, Gold has risen 33 fold. The S&P 500 is up just 21 Fold. Had you ignored stocks completely and simply bought Gold you would be significantly RICHER.
http://www.lewrockwell.com/2016/02/tyler-durden/truth-gold-investment/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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