I expect we'll hear from Daytr shortly telling us all that my chart above is some kind of fake.
But it isn't, and the reason Datyr hates it is because it's extremely damaging to goldbug philosophy, it proves beyond all doubt that gold isn't "the gift that keeps on giving", it's "the gift that keeps on taking".
And here's more proof:
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In his book Basic Economics, Thomas Sowell argued that, in the long-term, gold's high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:
To take an extreme example [of price volatility], while a dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars in real terms. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents,
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Even factoring in a margin of error it proves gold is about the worst long-term investment ever, except maybe a used car.
