How often have I heard in the past that gold is only an investment for "prophets of doom" and generally rather "stupid" as it pays no dividends. And in fact, if you look at the average investor, hardly anyone is invested in gold. Neither indirectly via mining shares nor directly. An exception might be a couple of gold coins sitting in a safe deposit box somewhere, but understandably not traded.
👉🏻 But does the performance of the last quarter of a century justify this reputation?
A very clear no! ... A look at the absolute gold price performance since 2000:
Gold: approx. +980%
S&P 500: approx. +262%
If you now take dividends into account (see also screenshot), the difference is no longer quite as significant, but is still clear:
Gold: approx. +980%
S&P 500: approx. +600%
Wnyone who was not invested (in whatever form) has missed out! 📈
👉🏻 So the question is what happens next?
I dare to take a look into my cloudy crystal ball 🔮... I remain optimistic about gold for 3 reasons:
1️⃣ increasingly loose monetary policy worldwide - constant and accelerating devaluation of fiat currencies (euro / USD / yen)
2️⃣ National banks as drivers of demand in the past and present (especially China, Russia & India, but also the ECB)
3️⃣ Demand from private households is increasing. The sharp rise in the price of gold in recent months has brought gold to the attention of the public.
📈 In the short and medium term, a small correction or consolidation at the high level would not really be surprising, but in the long term I see the price of gold at 5,000 dollars rather than 3,000 dollars an ounce. What do you think?
