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Gold Has Been a Shining Long-Term Investment
Nov 18, 2019


When I started my investing journey as a teenager and saw Warren Buffett as my role model, I'd borrowed his distaste for gold. (You know, right, Buffett has been a big gold critic?)

I saw gold accumulation as a crazy, compulsive, old Indian habit.

Of course, over the years I came to appreciate the intelligence ingrained in this tradition.

And ever since I met Vijay Bhambwani, I started seeing gold in a much broader perspective and also discovered a much bigger wealth-creation universe beyond just stocks.

I thought it would be interesting to see how lucrative gold has been as a long-term investment in India.

The chart shows the annual returns on gold over the last 15 years.

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

In fact, gold has delivered double-digit gains in 10 of the last 15 years.

During the entire 15-year period, gold has shot up 555% (compounded annual return of 12.1%).

During the same period, the Sensex surged 511% (compounded annual return of 12.0%). If you include dividends, the Sensex returns would be higher than gold by a couple of percentage points.

One must note that the Sensex returns are not representative of the broader market returns. Moreover, gold was a no-brainer. You didn't have to study financial statements, business models and forecast future earnings growth to get a double-digit return on your investment.

If you grab a pie of the big money-making opportunities beyond stocks, I would strongly insist you attend Vijay's Weekly Cash Summit here (It's free).

Data Source: goldprice.org

This Chart Of The Day was published in The 5 Minute WrapUp - I Just Acted on Vijay's Advice and Invested in This...

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