Barbarians at the Gate
Dozens of studies have proven that gold is a bad investment. Is it indeed? The below figure compares the return on the purchase of one ounce of gold at $35 in 1970 and an investment of $35 in stocks (S&P500, with monthly reinvestment of dividends, assuming no fees whatsoever, source: Robert Shiller ).
Now mentally subtract some management and rebalancing fees for the S&P investment, for example, 1% annually…
Posted: July 21st, 2008 under International.
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