. Well, that of course depends on when you buy it and when you have to sell it. Let’s take an extreme example.
If you bought gold in January 1975(this was about the time Americans were allowed to buy physical gold), it was selling for $180 US. Assuming you were 45 years old, you bought it for the long run.
Now it’s 2004. You’re 74, have an average amount saved for retirement, on Social Security, but you need to tap into your long term investment to fund some unexpected emergency. You call your broker to liquidate your gold(which you’ve held for 29 years). He tells you you’ll receive the staggering sum of $425/ounce for your gold. Hmmm? $425 divided by $180, is a whopping 236% over that period. Let’s divide the 236% by 29 years(not even discounting for compounding interest), and we get…ta da! about 8%. Actually, not bad for the long term. Of course, you could have bought the Dow in 1975 at about 600. And sold in 2004 at approx. 10,000+. That’s a niggardly return of only 16+%. !!!
It all depends on when you buy and when you sell. I could have made a case showing that you’re a genius for buying gold, and I could have chosed dates that show you’re a loser for buying stocks(or any other instruments).
I won’t disagree that buying various items is a good strategy.