Gold Has Outperformed Stocks in the Last 40 Years

Long ago, the U.S. had a gold standard. This meant people could exchange their dollars for a fixed amount of gold.

If I have my way, I would like to reinstate the gold standard. Why? Because the gold standard is rigid… unbending… uncompromising.

So it stops the government from doing things like printing trillions of money… they’re doing it now. And look at where we are. 

But I don’t have my way so you’re stuck in a world where money has value only because an institution says so.  

And that’s why you want to own gold.

Over the last 70 years gold’s inflation-adjusted annual return was 2.1%. 

In other words, gold has held its purchasing power. And that’s what it’s supposed to do. 

The same can’t be said about the dollar. 

And it will get worse. The reckless money printing has never been done in this magnitude. So, its effects are yet to be seen. It’s so new and so crazy, experts don’t even have the guts to predict truthfully how it will affect our economy in the long-term.  

When the Fed started its very first round of quantitative easing or QE, people got so scared of inflation, they bought gold. That pushed the gold price higher. 

The inflation didn’t happen until much later but gold’s price continued growing because people kept on buying. 

Even billionaires that once upon a time talked trash about gold, like Warren Buffet, are turning to gold. 

The federal deficit is also pushing gold’s value. 

Between 2009 and 2011, the government’s annual budget deficit soared to almost $2 trillion. Gold’s value doubled. 

Now the government is talking about running the biggest deficit in the history of the United States. Even bigger than we had in World War II.

And that bodes well for gold, but the biggest reason to own gold is protection. 

It smooths out the volatility in your investment portfolio. And in times like this, volatility of your investments more than double. 

Some financial managers usually go for 5-10% of your portfolio to be invested in gold. 

I say call us. Diversification is not a one size fits all. I personally keep more than 30% in gold but your case may be different. 

We have experts willing to help you figure it out. And no, there is no pressure to buy. In fact, if it is not right for you, we’ll be the first to advise you so. 

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

About Noble Gold

At Noble Gold Investments, we protect our clients financial futures by giving them a safe and easy way to invest in Gold and other Precious Metals. Whether it’s diversifying your portfolio with a Gold or Silver IRA, acquiring precious metals, or storing bullion in our Texas depository, our no-pressure agents can guide you through all the options available to you.

Recent Posts