Does Gold have Return on Investment?

Note that investment charts are not inflation adjusted.  Since 1998 stock markets have generated a 1.2% inflation-adjusted annual average return.  Further down you will see how much is needed in order to merely conserve purchasing power.




Let us put that into perspective for the last decade -- and with other currencies also -- so that you can see how much you have been robbed and how much the minimum return should have been before breaking even and starting to build a positive return.  Here is the annual performance of gold measured in various FIAT currencies:




As you can see, on average an "investment" (in order to be one) would have had to outperform (e.g., 18.4% p.a. in USD or 18.3% p.a. in GBP or 14.6% p.a. in EUR) during the past decade.  But the reality is that investments cannot so much as break even with lawful money, which is gold (and silver).  Therefore you would need to have an investment that breaks even with the real loss of purchasing power in the first place before turning into real profit.



The value of gold is like an anti-currency -- a rejection of the FIAT system in favor of something more tangible that cannot be conjured out of thin air.  This is not a bubble but a simple causality.  And as long as the trends hold, continued rise in the gold price is supported.  FIAT currencies are investments -- with a negative return as seen above. 

Enjoy, profit, and prosper from gold and silver -- and, above all, maintain your purchasing power with it!