Posted by zboy2854 on 27th of May 2015 at 05:52 pm
Problem is that ignores one's time frame for investment.
No one stays invested for centuries, and often not even
decades.
Timing matters.
If you had a 20 year investment timeframe and you held gold from
1980-2000, not only did you not earn any returns on your investment
in gold, it didn't even keep pace with inflation, it collapsed in
price. In nominal terms, your investment in gold would have
lost nearly 75%, and inflation adjusted terms you would be
underwater by close to 90%. You would have had to wait 27
years just to get back to break even on a nominal basis, and on an
inflation adjusted basis you still wouldn't be back to break even,
nevermind a gain.
Meanwhile, the same money invested in 1980 in Treasuries or the
stock market would have returned many multiples over your original
investment, including on an inflation adjusted basis.
This is the entire problem with gold/silver bugs. They
think it's
alwaysa good time to be invested in gold and
silver. And they just end up with broken clock syndrome.
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Gold - Long Term perspective
Posted by saturn6 on 27th of May 2015 at 10:37 am
Who needs interest on an investment like this?...
Link
Problem is that ignores one's
Posted by zboy2854 on 27th of May 2015 at 05:52 pm
Problem is that ignores one's time frame for investment. No one stays invested for centuries, and often not even decades. Timing matters.
If you had a 20 year investment timeframe and you held gold from 1980-2000, not only did you not earn any returns on your investment in gold, it didn't even keep pace with inflation, it collapsed in price. In nominal terms, your investment in gold would have lost nearly 75%, and inflation adjusted terms you would be underwater by close to 90%. You would have had to wait 27 years just to get back to break even on a nominal basis, and on an inflation adjusted basis you still wouldn't be back to break even, nevermind a gain.
Meanwhile, the same money invested in 1980 in Treasuries or the stock market would have returned many multiples over your original investment, including on an inflation adjusted basis.
This is the entire problem with gold/silver bugs. They think it's alwaysa good time to be invested in gold and silver. And they just end up with broken clock syndrome.