Gold or Land or Equity?
A great article on LiveMint:
Investing in equity for the long haul is a smoother ride with fewer costs Ask any group of people what gives the…www.livemint.com
If we begin with the Sensex at 100 in 1979 as a starting point for a meaningful comparison and look at returns across the market, real estate and gold, we get a positive return for all three.
Investment in gold from 1980 to 2014 (I got gold prices in Indian rupees off gold.org) returned 11%.
Investment in the Sensex returned 17% over the same period.
[Real estate grew at an] average annual rate of growth of 15%.
As most people believe, gold has not been a terrible investment. I also believe that gold prices have been rigged especially since the 2008 financial crisis to maintain confidence in the US Dollar. This manipulation is coming to an end. When gold is allowed to trade freely, gold prices will be far higher.
I also believe that huge amount of speculative and new money has entered the equity and the stock market. Again especially since 2008 financial crisis. Central banks quantitative easing programs increased money supply which entered these 2 markets.
I disagree with the author in his final summary. I believe, the future will not be the same like the past. I believe that gold will fetch far higher returns than equity and real estate investments.
