SINCE THE DAYS OF THE ancients, gold has been a symbol of wealth.
Kings, queens, emperors, rulers, and celebrities continue to use gold as a symbol of fortune and glamor.
Perhaps it is this precise use that’s turning people away from gold investments. Even while billionaires, the latest of which is Buffett, show their faith in gold, many are still doubting it.
So, let’s get down to it and go through all the reasons some experts believe you should pass on gold and other metals.
Critics say that long-term return is low.
Here’s a fact. GOLD HAS OUTPERFORMED STOCKS IN THE LAST FEW DECADES.
Gold has risen 37.43 fold since 1967. That is more than twice the performance of the Dow over the same time period, 18.45 fold.
Gold has increased by 315% over the past 15 years. In comparison, the FBNDX returned 127% and the DJIA increased by 58% over the same period, which is lower than the numbers reported over the 30-year period.
It has even outperformed the long-term and intermediate treasury.
Many insist that “past performance is not necessarily indicative of future results.” And we agree. That’s why we need to be educated about gold.
Gold’s value does not only rely on its reputation. The faith of billionaires and millionaires in gold is not solely reliant on history.
Gold’s growing utility use and scarcity are the prime factors for its consistent increase in value.