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| And that there is the right answer.
Gold is an asset, just like land, or a house. Although we have gold futures trading where there is a whole lot of non-existent gold trading as if it actually exists so that does skew things at times. But overall, you compare the value of land in gold say 100 years ago to value of land in gold today and you won't be far off. Or price of a house, or transportation, or suit, or whatever.
Gold doesn't make a return. That not its purpose. Gold is money. Dollars are fiat. Assets are money. Compare how many ounces of gold it took to purchase any given large asset and compare that today and see if the ratio is still fairly close.
That there is your "return" on gold. But it's not really a return. It is simply the ratio of exchanging one asset for another.
Sure, you can pick any given stock and say if you bought that stock 50 years ago you would be rich. But most people didn't, or they bought such a small amount that it is really irrelevant - they aren't rich. Gold preserves your wealth. It doesn't make you rich. | |
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When you own gold, read below
