GOLD 0.51% $1,391.7 gold futures

Let's start with the gold bars, price in October 1986 US $438....

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    Let's start with the gold bars, price in October 1986 US $438. Let's dispense with the trivia like exchange rates, inflation and premiums because the difference will be so vast it won't matter.


    Cost of factory in 1986 $210,000/438 = 490 oz of gold. 490 x $1290 =$632,000 (current value)

    Compound return of 2.1%. Before tax.

    Far less than what you'd get at the bank.

    -------------------------------------------------------

    Cost of factory in 1986 210K, now about $1.2m

    30 years of rent at average 30k/year = $900k

    Current value + rent = $2,100,000


    Total profit $1,890,000 before taxes, no capital gains anyway.


    Compound return of 7.46%



 
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