Should you buy gold? Here are a few facts for your consideration - Bloomberg
As a number of analysts agrees that gold is soon to hit the bottom and start its uptrend, Bloomberg has compiled a few facts which bullish traders may not like.
The author of the article calls on readers to estimate the facts and make personal conclusions. Thus, I render it for you.
- Gold declined around 38% from a weekly June 11, 2011 peak.
- The London Spot Gold series has delivered about 5.55% per year in the past two decades. The S&P 500 - around 9.00%.
- Gold bugs are still adamant... higher.
Before deciding that the yellow metal is a shelter for your capital this 2015, have a look at the two charts you see below. Ask yourselves whether it is a place to play, to "invest", or as a long-term "store of value".
1) The first chart depicts pre-Depression gold moves. One challenge for "total return" is the quiet of 1983-2000.
2) Below is the same chart, but inflation-adjusted. When inflation is added, the quiet becomes painful. The blue circle is where many gold guests suggests "fair value" is. But gold bugs disagree.
