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Originally Posted by woj
think about yourself, were you investing in gold before 2000?
I would guess no... a. it was a pretty damn poor investment before then...
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As for it not being a good investment before 2000, well again it depends on the period you're talking about.
Gold went from $35 USD in 1970 to over $840 USD in 1980 which is a more than 24 times or a 2400% gain over the 10 year period. Damn good ROI....
As for why it didn't perform well between 1980 and 2000, well the fundamentals were simply not there. Relative peace time, low inflation, low inflation expectations, low uncertainty, a booming stockmarket, reasonable economic picture, less debt (comparatively) and optimism.
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b. it was relatively hard to invest in gold
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Well, you're right that it has got easier and there has been a massive increase in paper products as well as ETFs and GLD and so on. However, that has only increased the fundamentals of gold and it is now said that the market is entirely driven by the paper market and not the physical market.
There is something like only 1 oz physical metal owned for every 99 oz owned in a paper form. That is something that is completely unsustainable. Incidently, Gold is my easiest prediction for the next five years - my call is over $2500 USD/oz for Gold by 2020.