Gold is Still Arguably Cheap.
Gold might not be as overpriced as you think. This is opinion of course, but let me show you why this is my opinion. Let’s start with the fact that gold cost only $35.94 on average per ounce in 1970 (41 years ago) and the 70’s is when all of the gold speculation really started.
You should take a look at the chart below for the last 40 years or so with gold.
As it stands today if you have invested in gold 42 years ago and held until today you would have a return of 4496%. This equates to 1.0954^42. In other words a 9.542% return every year. So gold averages out to a return 9.542% every year? No, only during these 42 years. Remember that the 70’s is when all of this gold speculation started.
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