Really?: "Budging Just a Little on Investing in Gold - NYTimes.com"

Interesting stats on Gold as an investment/hedge:

Budging Just a Little on Investing in Gold - NYTimes.com...from 1836 to 2011, gold earned an average annual inflation-adjusted return of 1.1 percent. By contrast, they estimated long-term returns to be 1.0 percent for Treasury bills, 2.9 percent for long-term bonds and 7.4 percent for stocks.
...
... since 1975, the volatility of gold's return, as measured by standard deviation, has been about 50 percent greater than the volatility of stocks.
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Despite gold's volatility, adding a little to a standard portfolio can reduce its overall risk.

Via: Budging Just a Little on Investing in Gold - NYTimes.com

Really? It's purely psychological in that case. However, the super Gold-bugs buy against a total collapse, not as a slight hedge against stocks and bonds. Should you gamble that they will never see the light or should you help to break the irrational psychology on gold?

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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