Stocks versus Gold Over Past 5 Years - Chart Of The Day 7 May 2019 - Equitymaster

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Stocks versus Gold Over Past 5 Years
May 7, 2019

"The magical metal was no match for the American mettle," wrote Warren Buffett, in his signature witty prose referring to gold, in the latest Berkshire Annual report.

He went on to write...

  • Those who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country's national debt has increased roughly 400-fold during the last of my 77-year periods.

    Suppose you had foreseen this increase and panicked at the prospect of runaway deficits and a worthless currency. Instead of buying stocks, this fortune-telling investor might have bought 3 and a quarter ounces of gold for $114.75.

    You would now have an asset worth about $4,200, less than 1% of what would have been realized from a simple unmanaged investment in American business.

Buffett is known for his negative views on the zero economic potential of gold.

But, gold has always been a staple investment for Indian households. More so on occasions like Akshaya Tritiya.

There are various opinions on what proportion of the portfolio could be allocated to the yellow metal.

Can I say?

  • The magical metal will be no match for the Indian mettle over the next decade.

So, by all means buy some gold for inflation hedge.

But don't lose sight of the Rebirth of India opportunity.

Data Source: Ace Equity

This Chart Of The Day was published in The 5 Minute WrapUp - A 10-Bagger in Just 6 Years! The Rebirth of India Will Create More Big Winners Like This

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