lsayre wrote:If you had ignored any form of investment risk and merely bought and held gold you would have done 62% better than the stock market.
Your conclusion is heavily dependent on the start and end dates you chose. If you sold when gold was at almost $1,900 your result would be even better, much better. But for a lot of years 1971 through 2014, you would have done worse than the stock market. See chart. Gold is more about speculation than about investment. And by speculation I mean, speculating what the hype will induce other people to pay, and being clever enough to sell at the hyped highs. In other words, buying gold is more about hype and mob psychology than about solid financial judgment.