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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (57479)	4/4/2006 8:46:41 PM
From: shades	Read Replies (1) \| Respond to of 110194

General I am no financial genius like you - I studied computers in college instead of marketing and business but I will take a shot at it. For the record I got a B in accounting - it bored me to tears - but me and the professor became great friends. in the language of math = (58,273k / 15k)^0.2 = 5.220 Your CAGR stuff a little off eh? Aren't you off by a decimal my man? Don't fret it happens to the best of us. 4,220+% annual compounded gain Take notes class! :) I believe if you will recalculate you will find the rate to ACTUALLY be 422.14% not 4,220% - Errors like that are why spacecraft go BOOM on mars and asians lose wars with us crazy scotsmen and derivatives go KAPOW when no one expects it! Decimal places my man! Here are a few web tools to help you - pen and paper and your head are so prone to error. investopedia.com moneychimp.com Otherwise Great observation Jay - MOOMINOID tried this same line of thinking on me back in the BBR thread - why dont you try picking any other point for GOLD besides when it was LOWEST - say jan 97 or jan 04 - maybe you are right - but maybe I am. That big math hurts my little brain - will you redo the calculation assuming you bought gold in those 2 years and held on for 3, 5, and 10 years times? And keep the decimal in the right place this time. 4 year investment: 1997.01.01 USD 1 = ZWD 10.85 2001.01.01 USD 1 = ZWD 55 1997.01.01 1 oz gold = USD 360 = 3906 2001.01.01 1 oz gold = USD 273 = 15,015 40% annually. 4 year investment: 2001.01.01 USD 1 = ZWD 55 2005.01.01 USD 1 = ZWD 5500 2001.01.01 1 oz gold = USD 273 = 15,015 2005.01.01 1 oz gold = USD 430 = 2,365,000 254% annually. 1.3 year investment: 2005.01.01 USD 1 = ZWD 5500 2006.04.04 USD 1 = ZWD 99,443 2005.01.01 1 oz gold = USD 430 = 2,365,000 2006.04.04 1 oz gold = USD 586 = 58,273,598 1198% the same year HAIRDO's went up 2100% - GOLD HORDERS Didn't get richer eh? Thanks Dear General! I could take notes - but you got to learn your decimals before they would be good notes eh? (snicker)