Performance graph

[Broken Arrow]

Disclaimer: I do not know the source, nor can I verify its authenticity and accuracy. Feel free to debate it, but I thought it was still worth sharing as food for thought.

Link

[sweeps]

Looks about right to me.

The gold bugs will look at this and say, "Look at how gold massively outperformed the dollar over the last 200 years!!!"

[disneysteve]

Great. Now if only I had 200 years until retirement I'd be set for life.

[humandraydel]

This graph is meaningless. Until 1975 the dollar was pegged to gold so by definition gold had almost zero return for 175 years of the 200 year period.

[sweeps]

Until 1975 the dollar was pegged to gold so by definition gold had almost zero return for 175 years of the 200 year period.

Yes, but gold had zero return for the *next* 25 years too.

This graph is meaningless.

I think the bigger point to the graph is how stocks have smoked all other asset classes.

[bjl584]

I think the bigger point to the graph is how stocks have smoked all other asset classes.[/QUOTE]

That's pretty much it. I have seen this gragh several times in my various finance and economics classes. It basically points out that the stock market will beat other investments in terms of returns, as a historical average.

[jIM_Ohio]

I think the bigger point to the graph is how stocks have smoked all other asset classes.

That's pretty much it. I have seen this gragh several times in my various finance and economics classes. It basically points out that the stock market will beat other investments in terms of returns, as a historical average.

The chart did not consider other investments:

1) Real estate
2) Owning own business
3) more common commodities
4) owning foreign currencies

Gold is more of an inflation hedge. If there is high inflation for a short period, stocks have been know to have a negative absolute returns during those periods, where as gold flourished.

1970's, I believe, was a great time for gold.

I am guessing the best investment ever would be land that had gold underneath it. Beats stocks, I think.

[bjl584]

[QUOTE=I am guessing the best investment ever would be land that had gold underneath it. Beats stocks, I think.[/QUOTE]

Probably, as long as you own the mineral rights.