SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gregor_us who wrote (13022)5/1/2004 12:00:59 PM
From: Wyätt Gwyön  Read Replies (2) of 110194
 
as i mentioned elsewhere, consider that gold has no yield. this is a disadvantage in a world where fiat currencies are priced with a positive real yield. thus in the 20th century, average yield on 90-day bills (basically the risk-free return on cash) was 4.1%, making for a 57-bagger on cash last century. this contrasts with a 3.2% inflation rate for the century, so a compound real return of 0.9%. (source: Triumph of the Optimists)

yep, when is the last time you heard a goldbug tell you the US Clownbuck was a 57-bagger? instead, they simplistically opine about "all currencies go to zero" and "USD lost 95% of its purchasing value". that's like talking about stock returns without looking at the dividend yield.

so it is not surprising that cash "outperformed" gold last century. BUT, HAVING SAID THAT, i'm not sure gold will "outperform" the USD this century. IN FACT, as long as cash is priced with a negative real yield i think gold has a good shot at kicking cash's butt.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News