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$1,391.7 gold futures

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Dabble010

3,920 Posts.

1306

27/01/20

03:25

Post #: 42583888
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Originally posted by Dr.Who: ↑

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.

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people can think what they want to think, doesn't make it right!

below is a clear example!

Last edited by Dabble010: 27/01/20

Value at posting: $1,391.7
16 Upvote

2 Great analysis

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