Conventional wisdom holds that gold is a good store of value, and provides a hedge of protection against inflation and economic upheaval. But a close look at the data reveals gold offers a long-term growth trajectory comparable to other financial asset classes.
In fact, as we reported in August, gold has actually outperformed the stock market so far this century. If we index both gold and the S&P 500 to 100 as of Dec. 31, 1999, gold had returned 86% more than the market.
Over the past 17 years, the S&P 500 has undergone two major contractions, both of them resulting in a loss of around 40%. Gold, meanwhile, has held its value well, boosting its appeal as a portfolio diversifier.’
Analysis by the World Gold Council shows that gold actually compares favorably with a number of financial assets when you analyze growth, whether you look at a 10-year, 20-year, or even a 40-year time span.
This post was published at Schiffgold on OCTOBER 3, 2017.
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