click for ginormous chart
StockGoldRealRollingReturns_2013

 

The chart above shows the rolling returns for stocks and gold.

Catherine Mulbrandon of Visualizing Economics writes:

For the period 1928-2013, the average annual compound real return of stocks = 6.3% and gold = 2.0%. However, the price of gold was controlled by the government until the mid-70s when the US finally abandoned the gold standard. For the period 1976-2013, the average returns were stocks = 7.2% and gold = 2.0%.

 

Continues here

Category: Gold & Precious Metals, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Rolling Returns of Stocks & Gold”

  1. Whammer says:

    Heads must be exploding at Zerohedge ;-)

  2. CSF says:

    Why would anyone compare gold to the S&P since 1976, of all years? The gold window closed in 1971, and the government began losing control over the price a few years earlier. If you look from 1968 to the present day, gold beats the S&P by 2:1 ($35 to $1300 vs. $100 to $1885). That does not mean gold is a better investment today, but those are the numbers.

    ~~~

    ADMIN: My guess would be after a 50 year period of price controls, immediately after they end is aberrational. I’ll have Barry check on that. Note also that these are rolling returns based on 1, 5, 10, 20 30 and 40 years, so it should not matter.

  3. intlacct says:

    I would say Damadoran’s site is gold :).

    As for having a small percent in a gold ETF/miner ETF as a diversifier, it certainly has worked for me.

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