Gold has outperformed the stock market over the last year

Burning Platform: [Simon Black]

For more than a year, I’ve been strongly encouraging readers to consider buying gold.

In fact, almost exactly one year ago to the day, I wrote that gold was cheap relative to just about every other asset class in the world.

Since then, gold has been one of the best performing investments in the world.

Over the last 12 months, the price of gold is up 21.1%, handily outperforming everything from the S&P 500 index in the US to stock markets in China, Europe, and Canada, plus bonds, real estate, and even major commodities like oil.

Gold has even outpaced the stock prices of many of the world’s most popular tech investments like Netflix, Tesla, Amazon, etc.

(One of the more interesting exceptions has been Bitcoin, which has more than doubled in value over the last 12 months. We’ll talk about that another time.)

But while gold’s investment performance has been great, I want to tell you today why that doesn’t matter one bit to me. read more

12 Comments on Gold has outperformed the stock market over the last year

  1. …before you specie investors get TOO smug, remember that:

    A) Obamacare tracks gold transfers.

    “Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year.”

    B) The Federal Government has seized ALL the gold BEFORE.

    “From: President of the United States Franklin Delano Roosevelt
    To: The United States Congress
    Dated: 5 April, 1933
    Presidential Executive Order 6102
    Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates
    BY VIRTUE Of the authority vested in me by Section 5 (b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled “An Act to provide relief in the existing national emergency in banking, and for other purposes,” in which amendatory Act Congress declared that a serious emergency exists, I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section do hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of this order:”

    …so. they know you HAVE it, and they have a precedent with which they can come GET it at ANY time.

    …other than THAT, all good, the bureaucracy appreciates your investment in their future…

  2. TO Sns

    The “reporting” stuff never happens when bought physical gold eagle coins from a legitimate coin dealer. The only thing I know is that the *sale* of said is a taxable event…supposedly…
    Physical gold bullion (e.g. 1 oz, 1 kilo bars) is also good…some advantages some disadvantages over coins.
    Gold jewelry is easier to transfer in/out of the country than coins, but costs more (paying for the hand work up front).
    [NOTE FOLKS: *never* buy “gold shares” in a fund…”bird in the hand” and all…]

    The government is not going to confiscate it any more than they will your guns [“Guns, Gold, Grub, Gals”…not necessarily in that order].
    Leave that nonsense to the Doom And Gloom Inc. websites!

    The “Hidden Secrets of Money” is a long but extremely informative series (10 parts to date) of videos on the topic. Long, some Episodes better than others, but very eye-opening.

    tl;dr Gold is a sensible part of any personal wealth plan. How much (1%, 10% of total) is up to you.

  3. There is still tons and tons of silver in the mines of N Idaho up around Wallace and Burke and Mullan that needs to be mined. If silver dollars and silver coins were good enough for my grandparents up to 1964 it’s good enough for me. My grandmother paid for nearly everything in silver dollars, I don’t think they ever bought or paid for anything on credit. If they didn’t have the money they didn’t buy it. They bought a brand new camper for their old International pick up truck in the late 50’s from a dealer in Yakima, Wa. and paid for it in silver dollars and the guy who sold it to them was flabbergasted when my grandmother brought out a large bag of silver dollars to pay for it. It was probably around $2,000 if I remember right from what my dad told me.

  4. I don’t own gold for the price appreciation. I own it as a hedge against the devaluation of the dollar. There is no end in sight to dollar devaluation. Gold holds value, dollars don’t. That’s why every single time you look up historical prices, you need to account for inflation and reprice it in “today’s dollars” to get an idea of what the real cost was.

    1 oz of gold 100 years ago is worth the same amount today – 1 oz of gold. No adjusting for inflation and no devaluation.

  5. “In fact, almost exactly one year ago to the day, I wrote that gold was cheap relative to just about every other asset class in the world.”

    I’m with bill & geoff,
    if (when, is more likely) the fiat dollar collapses, it would be alot easier to trade with silver. Silver dollars, even silver bullion, would be more practical to buy food or other sundries.
    How would you deal with a gold coin worth $1500 or more? Section it?

    When I see dollars these days, I picture 0bama’s or Pelosi’s image on it. That devalues it right there. And remember the Kenyan printed lots more of them for his shovel-ready epic larceny.

  6. When the dollar collapses, how would a gold coin be “worth $1500?” It wouldn’t, there’s no more dollar. Yes, you can section it quite easily being a soft metal that also takes on other shapes like bars and fractional ounces. Much easier to haul an ounce of gold than 88 ozt (6.3 lbs) of silver at today’s 88:1 ratio. That said, yes, most gold bugs also hold silver, and I can say from experience it’s a lot easier to manage 20 ozt of gold than it is 125 lbs of silver.

  7. Will you be buying real estate or essentials?

    PS THE MOST important metal in this scenario would be… …. lead.


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