Long term returns are terrible.
The long term, real return for gold is abysmal. When gold’s value goes up, it gets a lot of press and attention. Everyone is talking about it. We saw that back in 2011 when gold prices rose. But it’s since fallen quite a lot.Back in 1980, the price of gold went up to $850 an ounce. It got a lot of attention, fanfare, and news coverage.
But long term, gold doesn’t really go up that much. A study mentioned in the New York Times looked at the return of gold from 1836 to 2011. Once you factor in inflation, the long-term return on gold is just 1.1%.
To put that in comparison, treasury bills returned about 1%. Inflation-adjusted returns for long-term bonds were 2.9% over that time period, and stocks returned 7.4%.So in spite of the fanfare gold gets when prices skyrocket, the long-term returns – after inflation – are simply terrible.
Caveat Emptor. Inevitably gold will regress to its mean.
- Forums
- Commodities
- GOLD
- gold
gold, page-65046
-
- There are more pages in this discussion • 64,513 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GOLD (COMEX) to my watchlist
The Watchlist
LGP
LITTLE GREEN PHARMA LTD
Paul Long, Chief Executive Officer
Paul Long
Chief Executive Officer
SPONSORED BY The Market Online