Had you acquired a 100 ounce bar of physical gold on December 31, 1999,
your total out-lay would have been $29,025.00. The value of that same gold bar
today would be approximately $132,800.00. That could easily pay off a
mortgage, provide for a child’s college education, or buy a great many other
items that would change the lives of most people reading these words. More
than a 4-fold rise in the value of any asset over the course of seventeen
years would be considered a winner. You will never hear anything like this on
mainstream media, as they are too busy reminding you of how great those
blips-on-a-screen are performing and making your retirement all cushy and
fat.
Well, had you invested the same $29,025.00 in the stock market on the last
trading day of 1999, you would have made a handsome profit in the 21st
century. Unfortunately, your profits would pale in comparison to gold. Your
investment not only would have been on the verge of being wiped out on two
different occasions, but for all that risk, your investment would have grown
by less than double, approximately 57% – nowhere near the four-fold increase
in the value of gold.
When you watch mainstream media or
listen to central bankers, gold is constantly deemed to be the redheaded
stepchild of the investment industry.
Just that alone, is unbelievable, considering that gold has been one of
the best performing investments of the 21st century. On December 31st, 1999,
gold closed at $290.25. As of today it is trading at $1327.80.
That is a percentage gain in the last 16 years of 357%! Compare that to
the Dow Jones, which closed the 20th century at 11497 and currently is at
18085 for a gain of only 57.3%.
If there is a business sector or financial asset class that has
outperformed gold in the last 16 years, I can’t think of one. Yet, aside from
your crazy neighbor with a bomb shelter or those who read The Dollar
Vigilante, how many people do you know who understand the necessity for
owning gold and have actually acted on that knowledge?
Meanwhile, central banksters like Alan Greenspan call gold a
“barbarous relic,” and Ben Bernanke has opined that gold is not money and the
only reason central banks hold it is because of “long-term tradition.”
Source
Remember, you can’t eat gold, so there is no reason to have gold in your
portfolio, because unless your portfolio is filled with digestible items, you
are going to lose. Unless, of course, you did in fact acquire some gold in
the late 1990’s or early 2000’s. Then you know that while you can’t eat gold,
there is always a market for gold, anywhere in the world. This means you can
convert your gold in to the local currency wherever you decide to have
dinner.
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Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700
articles and produced more than 200 videos about the precious metals
market, economic and monetary policies as well as geopolitical events since
1987. His articles have been published by Zerohedge, SHTFPlan, Sprott
Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory
has contributed daily to SGTReport since 2012. He has interviewed experts
such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente
and Peter Schiff, to name but a few. Visit The Daily Coin website
and The Daily Coin YouTube channels to enjoy original and
some of the best economic, precious metals, geopolitical and preparedness
news from around the world.
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The author is not affiliated with, endorsed or sponsored by Sprott Money
Ltd. The views and opinions expressed in this material are those of the author
or guest speaker, are subject to change and may not necessarily reflect the
opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy,
completeness, timeliness and reliability of the information or any results
from its use.
