Return On Gold

[Misty]

25 year return in US$: 1.4% p.a. (1981 Price per troy oz: US$456.58, 28 Apr 2006 Price per troy oz: 644.00)

25 year return in GBP: 2.0% p.a. (1981 price per troy oz: GBP226.21, 28 Apr 2006 price per troy oz: 369.06)

Sadly, a negative real rate of return...

[Jamie]

Well, there are definitely better ways to invest ones money. Most financial advisors say you should only have 10% of your total investments in precious metals. I think that gold, silver etc will continue to go up over the coming months, or even years due to inflation fears and a weak dollar in the U.S. along with the global problems we are seeing now. Like any other commodity, they can fall like a stone. A lot of gold bugs lost their shirts in the early 80s after it hit a high around $800 and then started falling.

I see it only as a hedge against inflation. Doom and Gloomers may buy bullion as a worst case scenario (end of the world talk)...you would be better off having silver dimes. I doubt going to the store to buy groceries with a 1 ounce American Eagle is going to work well. You'd probably get shot for the gold on the way there if all hel_l broke loose.