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In fact gold does not compare favorably to US equity markets as far as saving your money goes. An investment in an S&P500 index fund in late 2007 (right before
by betterunix2 9y ago
In fact gold does not compare favorably to US equity markets as far as saving your money goes. An investment in an S&P500 index fund in late 2007 (right before the crash) would be worth more today than an investment in gold. An investment in the Dow Jones index in 1900 would be worth about six times as much as an equivalent investment in gold (assuming you held for 117 years, and not counting dividends).
Granted, people in unstable countries may have difficulty investing in the US stock market.
- dragonwriter 9y ago> Granted, people in unstable countries may have difficulty investing in the US stock market. People in unstable countries may have trouble safeguarding gold stockpiles, as well.
- kindfellow92 9y ago> People in unstable countries may have trouble safeguarding gold stockpiles, as well. Hence Bitcoin. cf. Zimbabwe
- drtillberg 9y agoThe fact that you can buy a similar amount of gold now for the same price as 2007 would indicate that it is currently at a better entry point. That this reasoning must be explained underlines a flaw in current investment sentiment. A 10-year horizon also is too short. A 100- or 500-year horizon is more typical for gold investment.
- betterunix2 9y agoLike I said, on a 100-year timeline, the Dow Jones index outperformed gold -- with and without the gold standard, through booms and busts, through the great depression, through the oil crisis, etc. Since 1900, an investment tracking the DJIA would have gained 6x the value of a gold investment.
- kindfellow92 9y agoOne day this will be true for Bitcoin, once it reaches a stable value.