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

Is It March All Over Again?

It looks like March all over again. Pretty much everything except dollars sold off yesterday. The Dow Jones was down 943 points. The S&P 500 dropped by 3.53%. The Nasdaq plummeted by 426 points.  It was panic selling as markets fretted about the rise in COVID-19 cases, new lockdowns in Europe, and the lack of […]

READ MORE →

Millions of Americans Struggling to Pay Their Bills

We read a lot about the big-picture impacts of the economic meltdown caused by the government response to the coronavirus pandemic. We hear about the millions thrown out of work, the surge in corporate bankruptcies and small businesses shutting down, and the specter of surging inflation. But how has all of this impacted the average […]

READ MORE →

Inflation Is Here

The mainstream isn’t worried about inflation. In fact, we’re told inflation is muted. And that’s true, at least by some measures. We haven’t seen the rising consumer price index (CPI) you might expect as central banks inject trillions of dollars created out of thin air into the economy. But just because government numbers don’t reflect […]

READ MORE →

The Stock Market Is Completely Untethered From Economic Reality

We’ve been saying for months that the stock market has completely disconnected from economic reality. The markets have hit record highs despite the economic chaos caused by the government response to COVID-19. As Peter Schiff put it in a podcast back in May, the markets are on a Fed-induced sugar high. In a recent article, […]

READ MORE →

Ranks of the Long-Term Unemployed Growing

The mainstream spin on unemployment is that things are improving. The unemployment rate is coming down. The number of weekly jobless claims recently fell below 800,000 for the first time since government lockdowns in response to the pandemic went into high gear last March. But there are some troubling signs that undercut this good-news narrative. […]

READ MORE →

Comments are closed.

Call Now