Gold Set to Shine?
We posted the chart across a while back and thought it would be useful to provide an update; the three year change in the price of Gold divided by US Equities has now moved firmly positive; crossing the 0% line has historically seen Gold provide strong returns.
From the points highlighted there were the following returns: -
- April 1978 to February 1980 275%
- November 2001 to April 2003 18%
- October 2005 to September 2011 288%
All returns well worth having; add to this the expanding debt levels of Governments, negative real interest rates and generally negative sentiment holding Gold is a crucial part of any investment strategy - as Ray Dalio of Bridgewater Capital Hedge Fund has famously said, “If you don’t own gold, you don’t know history.”