Wednesday, August 10, 2011

Hey Dave Ramsey

You keep telling people what a bad investment it is to buy gold. Let's take another look at the numbers:

Dow in 1971: 868
25 ounces of Gold in 1971: 875

Dow in 2010: 10,067
25 ounces of gold: 27,200 (1088 per ounce)

Dow today:10,862
25 ounces of gold: 44,550 (1782 per ounce)

So, since January of 2010, the Dow has increased at an annual rate of 5%, but gold has climbed at an annual rate of 40%. Since 1971, the Dow climbed at an average of 28.8%, and gold at a whopping 124.7%.

Of course, the Dow is adjusted, and the stocks on it are dropped as they become worthless, so the actual return on the Dow is much lower than that. Thanks Dave.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.