Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Gold Has Outperformed Stocks this Century

  by    0   0

July was a good month for gold. The yellow metal was up 2.1% on the month, driven in large part by a weakening dollar and political uncertainty in the US. In fact, it’s been a good year for gold so far. It’s up just over 10% to date.

This is great, but we’re taking a pretty short-term view here. What do things look like if we step back and take in a broader perspective?

Excellent.

It’s been a pretty good century for gold.

It’s easy to get caught up in the day-to-day fluctuations in the price of gold and lose sight of the bigger picture. And when it comes to investing that big picture is key. The price of gold tomorrow probably doesn’t matter too much to you. But the price of gold in 10 years – that might be a bit more significant.

All eyes have been on the stock market over the last several months. The Dow cracked 22,000 this week. Mainstream pundits are giddy. Meanwhile, as an article in Forbes pointed out, 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 has 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.”

Peter Schiff made this point during an interview on CNBC last spring. When his nemesis Scott Nations insisted that gold wasn’t a good investment, Peter dropped a golden truth bomb on him.

When I started buying gold for my clients in 1999, it was under $300 per ounce. It’s now almost $1,300 per ounce. People who have been following my advice have made money. How many people came on CNBC in 1999 and touted dot-com stocks where they went to zero? Yet you don’t give those guys a hard time. They blew their clients up. They lost all of their money when I was telling people to buy gold at under $300 per ounce.”

As Peter pointed out in his recent podcast, despite the stock market surge this year, there are cracks in the foundation. Economic fundamentals don’t support this stock market bull run.  And Peter isn’t the only one concerned. Over recent weeks, officials from a number of the world’s major banks have warned that the current trajectory is unsustainable, and a crash may loom on the horizon.

We don’t know what the future holds. But as Peter pointed out, if the past is any indication, it’s wise to buy gold.

If you go back to 2001, people who bought gold have much more money than people who just bought stocks. So buying gold, having gold as part of your portfolio, has been a wise choice for investors.”

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

The Fed “Out-Doves” Expectations While Doing Nothing

The Federal Reserve wrapped up its final Federal Open Market Committee meeting of 2019 on Wednesday doing pretty much what was expected — nothing. But in the processing of doing nothing, the central bank said a lot and managed to out-dove expectations. After cutting interest rates three times in 2019, the FOMC stood pat during […]

READ MORE →

The Wealthy Are Hoarding Physical Gold

The world’s rich are hoarding gold – this according to data buried in a recent Goldman Sachs note to clients. In the note published over the weekend, Goldman recommended diversifying long-term bond holdings with gold, citing “fear-driven demand” for the yellow metal.

READ MORE →

New Debt Record; Americans Propping Up the Economy With Money They Don’t Have

American consumers are still propping up the economy spending money they don’t have. But how long can it last? After a  slight slowdown in September, consumer borrowing jumped again and set another new record in October, according to the latest data released by the Federal Reserve.

READ MORE →

Central Banks Keep Right on Buying Gold

Globally, central bank gold reserves charted another healthy gain in October as they continue their quest to diversify reserves away from the US dollar. Central banks added another net 41.8 tons of gold to their reserves in October, according to the latest data from the World Gold Council.

READ MORE →

Top Slovak Party Leader Wants the Country to Bring Its Gold Home

A top Slovak political party official said his country should bring its gold home because even its allies cannot be trusted with it. Ex-Premier Robert Fico chairs the biggest party in Slovakia. Last week, he called for a special parliamentary session on the country’s gold. He said the country’s gold reserves are not safe in […]

READ MORE →

Comments are closed.

Call Now