Will Gold Reach Unthinkable Heights?
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
When gold antagonists want to disprove gold’s virtues, they choose the 1980 top at $850 as starting point. They then deride gold investors, saying that it took 28 years before that level was reached again. They conveniently forget to mention that gold reached new highs between1971 and 1980, going up 24X.
Stock investors could also point out that they have outperformed gold by 200% since 2011. But they forget to mention that since 1999, the Dow has lost 60% against gold (excluding dividends).
This shows that you can always prove the investment performance by picking a suitable starting point.
Still, it is an undeniable fact that gold has been the best asset class in this century.
Up for discussion: “It serves no purpose to hold gold”; Bitcoin is up 470,000X; gold—worst asset class since 2011 and best since 1999; the stock market—a lottery with only winners; buy the dips has worked every time—until now; buy and hold—the market always goes up; don’t measure your wealth in illusory money; measure your wealth in Big Macs; gold will reach new highs that few can imagine today; gold forecasts; and what will the value of gold be when the dollar goes to zero?
