Dow to Lose 97% Against Gold

In the last 48 years, since 1969, an investor who put $1,000 into the Dow would today have $33,000. That is a gain of 3,200% or 7.6% annually. On the other hand, someone who put $1,000 into gold in 1969 would today have $37,000 or 7.8% annual return. But if you add dividends to the Dow, the return is far superior at 10.7% with the dividends reinvested. 1969 seems like an arbitrary start year but it happens to be the year that I started my first job. No one could of course have predicted any of those returns. The previous 48 years from 1921 to 1969, the Dow only went up 9X but with higher dividends in that period the total return would still have been 10% annually. Gold on the other hand only had one move up during that period from $31 to $45 in 1933 when the dollar was devalued. That is a meagre 1.5X increase. Due to the gold standard, those 48 years had relatively sound money and therefore limited credit creation with the exception of WWII. Although history can be an...

from GoldBroker.com https://www.goldbroker.com/news/dow-to-lose-97-against-gold-1218