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Gold Return vs. The Stock Market
Which investment would have netted a better return?
"Where should I put my money to get the best return on investment?" This is a question investors from novice to expert ponder with regularity. The choices can be mind-boggling. When considering investment options, the numbers should speak for themselves. Let’s take a look at gold.
A $10,000 investment: your returns with gold and stocks
Had you invested $10,000 in gold bullion in 1999, your initial investment would have grown to $33,754 by 12/31/08 – an amazing 237.54% percent increase.
That same $10,000 investment in stocks of the S & P index would have lost $3,987. That’s a 39.87% loss.
Best One Year Return in Past 25 Years
- RARE COINS: 198.8%
- GOLD BULLION: 100.2%
- STOCKS: 31.1%
— Lombra, Raymond E., PhD., The Investment Performance of Rare U.S.
Coins, Penn State University, February 2006
Gold Performs Better than Stock Market
"Equity markets continue to trend lower since the 2000 peak, despite
the most stimulative monetary and fiscal policies on record... However, as a
57-year old man, I do not expect to live long enough, even if I live to be 100
years old, to witness a new high in U.S. equity prices."
— Jay Taylor, Gold & Technology Stocks, October 12, 2004
"Nobody, it seems, is noticing what’s happening as gold moves higher
in what promises to be an historic, monster bull market… What we’ve
experienced so far is the first phase of what’s shaping up as one of the
great bull markets of our time. In this first phase, sophisticated, knowledgeable
people take their positions. And that’s what has been happening. This
isn’t the crowd buying gold. This isn’t the mutual funds buying
gold. This isn’t your neighbor buying gold. This is the big money, the
wealthy, the people around the world who know what’s going on who are
buying gold.”
— Richard Russell, editor Dow Theory Letters
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