The chart below clearly demonstrates the outrageously formidable appreciation of gold and silver vis-à-vis other asset classes during the past 12 years (to March 13, 2013). Specifically, here are the total increases in value during the period:
- GOLD price has soared +513% (equivalent to CAGR (*) of +16.4%/year)
- SILVER price has soared +570% (equivalent to CAGR (*) of +16.7%/year)
- Global Equities (DJ World Stock Index) +51% (equivalent to CAGR (*) of +4.0%/year)
- S&P500 Stock Index +35% (equivalent to CAGR (*) of +3.1%/year)
- U.S. Treasuries +34% (equivalent to CAGR (*) of +2.5%/year)
- U.S. Dollar Index´-28% (equivalent to CAGR (*) of -2.9%/year)
CAGR (*) means Compound Annual Growth Rate.
The U.S. Dollar Index negative ‘performance’ is to emphasize the loss of purchasing power suffered by those hapless investors in Money Market Funds, U.S. T-Bonds and Cash.
The draconian difference in performances is actually The Best Kept Secret In The Financial World for the following reason. The chart below shows total Global Asset Allocations. Specifically, the world’s total investing public has allocated their investment s per the following:
- Bonds 49%
- Equities (ie stocks) 37%
- Money Markets 9%
- Alternative Investments 4%
- GOLD 1%