
The Longest Record Broken: Gold/Silver Ratio Hits Highest in Over 5,000 Years - nabla9
https://www.nasdaq.com/articles/the-longest-record-broken%3A-gold-silver-ratio-hits-highest-in-over-5000-years-2020-03-17
======
lordnacho
Here's my explanation as an ex fund manager:

Gold is the Schelling point flight-to-safety, anti-inflation good. Silver has
similar qualities, and might as well be the same thing economically, but it
isn't. You're more likely to have heard of gold bugs than silver bugs.

When it comes to a massive market panic like this, people think about what
other people think about. Well, they always do that, but when there's a panic
people have certain safe haven assets that everyone "agrees" are more likely
to be safe than others.

Bonds are another one, though of course there you have historically had
massive government intervention, making it a little less unintuitive why
people should buy them.

~~~
short_sells_poo
As I wrote below, gold has been a very dubious hedge for equity market
crashes. As a matter of fact, in the last 2 decades, gold sold off with the
initial market panic and it only started appreciating with the equity
recovery.

Truth is that very if (if any) people understand gold, and it's use as a safe
haven for market panic is highly questionable. It has certain correlation
regimes with bonds and inflation, but given the sparsity of data on market
stresses (they are by definition rare events), it is very difficult to draw
any sound conclusions.

I explicitly exclude any events pre-2008, as the world now is completely
different. The only thing that perhaps translates from the pre-2008
environment to our current situation is the magnitude of the selloffs, but
everything else is different.

~~~
duxup
Is it fair to say that gold is just as speculative and prone to panic as ...
most things?

~~~
short_sells_poo
Yes. Gold has become (or always was?) as much a speculative asset as pretty
much anything else. It's difficult to find a safe haven asset in any crash,
because there are so many feedback loops and non-obvious relationships. Ex
post we see of course many asset managers come out of the woodwork beating
their drum on how their expertise allowed them to buy the safe haven asset
that happened to work in a crash. This is survivorship bias at it's clearest.

After 2008, central banks managed to stop every single market stress with a
firehose of money. Eventually this became an actual trade. Every single
selloff was bought heavily by traders because of the near-certainty that CBs
will provide a hard backstop to the panic.

Until last week, where a new regime is starting emerge perhaps where CB tools
have suddenly stopped working, at least short term. Perhaps once the selloff
stops, the massive money supply support will re-accelerate the buying, but
right now we are in uncharted territory. The current market behavior is
unprecedented. We saw the 3rd biggest one day loss in the entire history of
S&P 500. Intraday volatility is through the roof.

------
TheAdamAndChe
I bought $300 worth of silver last night, and I plan to buy more while I can.
The government is injecting a massively gigantic amount of cash into the
economy to counter the decreased velocity of money, but within a year and a
half or so, the velocity of money will sharply increase, possibly higher than
before. That will cause such a high rate of inflation that I'm afraid of what
could happen. I bought physical coins because I don't know if the financial
institutions will waver, crumple, or at very least become inaccessible for a
while. I've stashed some cash too in case there's a run on the banks, but I
don't know if they will be worth as much.

Basically I'm preparing for a global depression. This sudden shock to the
economy is unprecedented in any modern time, and we have no idea what could
happen.

~~~
nabla9
I hope you realize that you think you have figured out something that markets
don't. Markets see decades of low inflation.

Central banks know how to stop inflation, that's not a problem for them at
all. The problem for the next 10 years will be low inflation, not large
inflation.

~~~
radford-neal
There may well be serious real problems, which the central bank can't
magically solve. But if you're just worried that there might not be "enough"
inflation, the central bank has unlimited ability to create that, if it wishes
to. (Of course, whether such inflation would be a good idea is debatable, and
could depend on the circumstances.)

~~~
nabla9
> the central bank has unlimited ability to create that, if it wishes to.

This is not true as the recent decade shows. Japan has tried to increase
inflation almost two decades.

Just increasing the money stock does not create inflation if the velocity of
money decreases at the same rate.

~~~
radford-neal
No, Japan has not _really_ tried to create inflation. If they had, they would
have succeeded.

If the government prints lots of cash, and then mails a bunch of cash to every
person in the country, then there will be inflation. Lots of inflation, if the
amount of cash is high enough. And there's no limit to how high the amount can
be.

To doubt that, you have to believe that someone of previously modest means who
now has a million dollars of cash in hand will just horde it, rather than go
out and buy the $40,000 car they've been wishing they had, or the nice
$500,000 house they now could live in, or the nifty $10,000 camera and lens
set that would be really fun to play with, or the...

Actually, you don't have to just believe that _someone_ will horde immense
amounts of cash rather than buy real, useful stuff with it, you have to
believe that _almost everyone_ will horde the cash.

People aren't like that.

------
adaisadais
Gold is such an odd form of value. If money, as Felix Martin puts it, is a
social technology then gold is an antisocial technology. (1)

Gold and silver look great in a recession because they (unlike the buyer) do
not panic. However, in the long run they provide virtually no value to society
(unless you make some fancy jewelry or cover your toilet seat) and frankly I
find owning large amounts of gold to be a silly proposition.

If society were to collapse I don’t think anyone would be hoarding gold or
silver... unless your Blackbeard or Scrooge McDuck.

Edit: forgot to link :/ (1)
[https://www.google.com/amp/s/www.nytimes.com/2014/04/13/book...](https://www.google.com/amp/s/www.nytimes.com/2014/04/13/books/review/money-
by-felix-martin.amp.html)

~~~
chrisseaton
> If society were to collapse I don’t think anyone would be hoarding gold or
> silver

But people have hoarded gold and silver to successfully preserve value over
the collapse of countless societies and civilisations for many thousands of
years.

Why do you think our society and the one following it would be any different?

> I find owning large amounts of gold to be a silly proposition

I literally can't think of any more reliable, safe, enduring preserve of value
across all of our existence.

If you dig up one of their hoards in a farmers' field today the value of the
savings of a Roman from two thousand years ago are preserved to this day.

Can hardly describe it as silly?

~~~
thorwasdfasdf
>> "But people have hoarded gold and silver to successfully preserve value
over the collapse of countless societies and civilisations for many thousands
of years."

In 5000 years from now, I wonder if people will say the same thing about
BitCoin.

~~~
war1025
A quick search shows a post from this week titled "Bitcoin drops 50% in epic
two day tumble", so somehow I doubt it.

As others have said, Bitcoin is a very shallow market. It is "worth" a lot in
principle, but good luck trying to convert it to cash.

~~~
nostrademons
Presumably, if it gets to the point where you need a safe-haven store of
value, you won't be converting it to cash. You'd be transferring it directly
to the recipient in exchange for food, shelter, or weapons.

~~~
owenmarshall
I think if you’re to the point of liquidating assets for “food, shelter, or
weapons”, I would prefer a few Krugerrands that fit in my pocket. How can
Bitcoin beat them in terms of durability and wide acceptance?

------
littlestymaar
> The gold market seems split at the moment: while the price is falling,
> meaning there are more sellers than buyers, everything I read on Twitter is
> that physical gold is nearly unobtainable – many banks and refiners have run
> out of inventory. Apparently there has been a surge in retail demand for
> gold coins and bars at the same time as the price has been falling.

Remember: if you “own” gold in some portfolio, you don't really own _gold_ ,
you own an IOU for gold and you have zero guarantee to get your money back if
things go bad. And while fiat money is backed by states, there is nobody to
back your fiat gold.

(The same reasoning applies if you own bitcoin or any crypto on coinbase or
any other exchange).

~~~
biolurker1
Not true several etfs have the exact same gold equivalent. If you mean
apocalyptic scenarios then yeah

------
morley
I'm a little confused. Maybe I'm interpreting this news or other commenter
reactions incorrectly? They seem to be saying that the price of gold is on the
rise, but the price of the gold ETF has gone DOWN in the last few days:

[https://spdrgoldshares.com/#home](https://spdrgoldshares.com/#home)

And the futures markets are down too:

[https://www.investing.com/commodities/gold](https://www.investing.com/commodities/gold)

Are other commenters only speculating that the price is going to go way up,
and that the price is a good deal right now? If so, that doesn't seem to be
supported by financial indicators, and the speculation around it doesn't seem
much better than, say, saying that Bitcoin is going to go up in any given
environment. I'm surprised to see this discussion on HN. I hope I'm grokking
things wrong.

~~~
mulle_nat
My impression of the gold market is this: The gold bugs always say, that now
is the right time to buy. It rarely is though. That's because issuers and
supporters of fiat currency have an interest in the gold price not exploding,
because it's basically a counter currency. So you see the current divide of
reported gold demand and the price being "artificially" depressed.

But the gold bugs can't really win, because the fiat currency owners wield
infinite power, unless inflation really kicks in at some point. So gold is
usually not that great of an investment.

That's my perception, I am not at all an expert on these matters.

~~~
AnimalMuppet
I don't think that fiat currency issuers have infinite power to _suppress_ the
price of gold, because they have at most limited amounts of gold to sell. They
can certainly _increase_ the price an infinite amount, though.

------
Ottolay
Silver is down because it is largely an industrial metal used heavily in many
electronic components. Gold is also used in industry (e.g. Gold plated
connectors) but less so compared to its use as a value store by governments[1]
and private parties. Since the economy is expected to drop, industrial metals
are dropping as well.

[1] [https://www.fiscal.treasury.gov/reports-statements/gold-
repo...](https://www.fiscal.treasury.gov/reports-statements/gold-
report/current.html)

------
lazyjones
Peculiar situation. Hoarding Gold purely as an investment strategy is largely
a psychological phenomenon now, since it has lost most of its value as a
currency in harsh times. Or what exactly are you going to buy with your gold
coins when all supply chains are broken and most goods can't be produced even
at a higher price? Better hoard canned tuna...

~~~
kareemm
I always wondered about this. Gold is now valuable only as a shared fiction.
In hard times I’d much rather have useful things (food, meds, water, fire)
than a pile of stuff that is valuable only because others think it is... which
could and does change over time.

Clearly I’m missing something...?

~~~
jonhohle
Gold has utility as well: it’s highly conductive, doesn’t oxidize easily, is
hypoallergenic, malleable, etc.

Napkin math tells me that over 50 tons of gold have been used just in iPhones
over the past 13 years. Just like any commodity - if there is demand, there is
probably value.

~~~
Symmetry
Bismuth is priced at $.39 per gram, copper at $.0074. I would bet gold would
end up somewhere in that range or so as opposed to the $48 per gram it's at
now.

~~~
DubiousPusher
No because it's much more rare. All the gold mined in the history of the world
could fit into one moderately sized warehouse.

190,000 tons of gold mined in the history of the world vs. 700,000,000 tons of
copper.

~~~
Symmetry
Well, we've mined 320,000 tons of bismuth so that's probably a better
comparison than copper. This is all just to get a wide ballpark estimate.

------
gjabbar
Gold is long term cash.

Sovereign funds / private wealth purchase gold as a hedge against inflation.
Ie their short term cash (actual cash) being worth less tomorrow. It has this
characteristic because gold fundamentally has zero yield.

When you enter a crisis period or period of deflation. Which we are seeing
now. There is a flight to short term cash (USD).

Good bugs who hoard gold or draw parallels to Armageddon and huge price
increases in gold do not account for the simple fact that gold is long term
cash.

During the GFC the same liquidation profile was observed for gold.

~~~
dumbfoundded
In some ways, gold is the only real money. Governments have been secretly
taxing their citizens by forcing them to use the gov't issued currency while
printing more of it. Savers lose value in this process to finance short term
needs.

You can't print gold. Even when gold prices wildly fluctuate, gold production
doesn't b/c it's already so hard. In times like now, we're going to print lots
of USD in one way or another.

Is there a gov't issued currency that's held its price better than gold?

~~~
gjabbar
My first job was at a mining startup that found perhaps the best copper/gold
discovery in a decade. We were ultimately acquired. It's a reality. Mines take
a minimum of ten years from discovery to bring into production. This is
without the typical roadblocks of political/environmental/management/technical
showstoppers.

Gold has long been thought of a long-term store of value for this exact
reason. Governments cannot help themselves, particularly democratic ones, from
following a path of unfunded austerity. It becomes the power cycle, at some
point there is a financial reckoning, and citizens' wealth is destroyed.

Then the cycle begins all over again, usually tied to a metal (like gold)
before breaking into fiat when the unfunded liabilities exceed the ability of
the country to fund them.

US dollars are the best among the worst in fiat. That will change, as it
always has historically. Gold will remain as a store of value, as it always
has.

------
nl
This really just shows how precious metals (except for gold) have been
abandoned as major financial instruments.

There's just no demand for them as a trading instrument anymore, but gold is
still used.

------
talkingtab
I agree with others: everyone has heard of "flight to gold" and no one has
heard of "flight to silver" If many inexperienced people panic it would be
natural that they buy gold instead of silver or even copper for that matter.

This will possibly change, the ratio go down, as people move from "panic
flight" to "considered flight" as the crisis deepens and as people become more
knowledgeable. And if the price of gold becomes too high for many people.

Perhaps the best thing is to avoid anything that has speculative value or
irrational value at this time. Gold has some irrational value because fewer
people trading it have a full understanding of alternatives etc.

------
numpad0
The article has charts, and from it the ratio had been 18 times as much silver
for gold in weight up until 1875. The article also mentions it was 2.5x in
3100 BCE, 13.33x in 560 BCE, 10.5x in 300 AD and so on.

The real change starts 1875 where it starts to rise and vibrate between 20x to
100x, trendline inclined at maybe 20x per century. And yesterday's peak was at
123.78x. Maybe I could say the human population is 5000 years high as well,
except dips in population is much shallower than for this.

------
Empact
Silver's scarcity is less than gold but its practical portability and
exchangeability is a bit greater than gold, because typical units of exchange
align with practical amounts of metal (coin-size, rather than gram-size).

However, now that a highly-scarce, highly-portable, and highly-divisible
Bitcoin is on scene, silver is less useful as a monetary metal because it
loses to gold and/or Bitcoin on each of these qualities.

------
raincom
Goldbugs have been waiting for this kind of panic for a long time, because
these bugs think that non-goldbugs will increase the demand for physical gold,
paper gold (say, $GLD), miners ($GDX), junior miners ($GDXJ), and penny stock
gold miners. Today, $GLD has fallen to $140, a level matching Dec 24, 2019
prices. Last Friday, $GDX and $GDXJ crashed. Then some rebound, now crashed
again.

Anyone with some semblance of how monetary economics works won't go gold full:
maybe, 10 percent. Goldbugs dream that one day every economy will be based on
Gold; that train left long time ago. These bugs are busy recruiting new
'fools' on various forums. It is like people hoarding bitcoin, eth, etc, who
are waiting for the next btc bull run: imagine all those suckers who hoarded
tulips after tulipmania!

~~~
mirimir
Sure, but all that paper gold isn't really gold. From TFA:

> The gold market seems split at the moment: while the price is falling,
> meaning there are more sellers than buyers, everything I read on Twitter is
> that physical gold is nearly unobtainable – many banks and refiners have run
> out of inventory. Apparently there has been a surge in retail demand for
> gold coins and bars at the same time as the price has been falling. It seems
> that the “paper” market, the futures and ETFs, is determining the price and
> does not reflect the heightened demand on the street for hard metal during
> this time of insecurity.

So the price of physical gold is _much_ higher, for anyone who wants it,
anyway.

~~~
raincom
Paper gold, like $GLD and $IAU, is safer than hoarding physical gold, since
many vaults can't be trusted. They are scams at many levels: coin purchases,
physical vaults, fraudulent miners (remember Bre-X).

If one wants to buy 2 lbs of gold jewelry, or even wear a 'gold shirt' every
day, that's fine. One such gold shirt guy, Datta Phuge, in India got beaten to
death. Another gold man in Hyderabad, who wears 2.5 lbs gold all the time,
need four buddies around whenever he goes out.

Or go the wild west way: buy guns, live in a bunker.

~~~
mirimir
I don't live in a bunker, but I do have some gold and silver, in a box under
my bed. There's also a loaded shotgun under the bed, with dual pistol grips
and laser sight, loaded alternating slugs and buckshot :)

------
bouncycastle
Would anyone know if low oil/energy prices impact the gold price? With lower
energy prices, it's now less expensive to get it out of the ground and refine
it. Could that mean more gold flooding the market in the future?

~~~
DubiousPusher
Yes. But currently that effect is being significantly offset by massive demand
for gold as a reserve metal.

------
mrnobody_67
This is the best explanation I've ever seen of how the Fed and US Dollar money
printing actually works:

[https://www.youtube.com/watch?v=iFDe5kUUyT0](https://www.youtube.com/watch?v=iFDe5kUUyT0)

Most people also don't realize that the Fed, which buys Treasury's drawn on a
bank account with $0 in it, is privately owned - and distributes dividends to
its private shareholders holders (who are not disclosed).

~~~
IAmGraydon
The Fed is not privately owned. Directly from the Federal Reserve’s website:

Some observers mistakenly consider the Federal Reserve to be a private entity
because the Reserve Banks are organized similarly to private corporations. For
instance, each of the 12 Reserve Banks operates within its own particular
geographic area, or District, of the United States, and each is separately
incorporated and has its own board of directors. Commercial banks that are
members of the Federal Reserve System hold stock in their District's Reserve
Bank. However, owning Reserve Bank stock is quite different from owning stock
in a private company. The Reserve Banks are not operated for profit, and
ownership of a certain amount of stock is, by law, a condition of membership
in the System. In fact, the Reserve Banks are required by law to transfer net
earnings to the U.S. Treasury, after providing for all necessary expenses of
the Reserve Banks, legally required dividend payments, and maintaining a
limited balance in a surplus fund.

[https://www.federalreserve.gov/faqs/about_14986.htm](https://www.federalreserve.gov/faqs/about_14986.htm)

~~~
radford-neal
"not operated for profit" and "dividend payments" seem to be contradictory.

The question would seem to be how the amount of dividend payments gets set.

------
dnprock
I have a different theory for the silver drop. The gold value has not gone up
significantly. So this ratio drop is caused by a drop in the silver price.
People are fleeing to cash now. They still value gold and keep it. But the
impact on silver demand this time is Bitcoin. It appears to be even better
than gold. Why settle for silver when you can buy Bitcoin? Bitcoin may be
replacing silver on its rise to catch up to gold.

------
gravitas
A year ago gold was around $1300/oz and silver around $15, both started
inflating when the trade tariff war (US/China) kicked off.

[https://www.kitco.com/LFgif/au0365nys.gif](https://www.kitco.com/LFgif/au0365nys.gif)

[https://www.kitco.com/LFgif/ag0365nys.gif](https://www.kitco.com/LFgif/ag0365nys.gif)

------
ggm
Both gold and silver have industrial applications. They don't inform the
price, and I doubt they inform the price ratio.

Silver and Gold have interesting properties. I hope pricing and hoarding don't
reflect behaviours which make them harder to "use" rather than be treated as
rei-ified value for hoarding.

That said, the tiny size of the gold mountain amuses me. All that digging, so
little outcome.

------
ponsin
Why is it that there is so much advertising for investing in gold? Many of the
podcasts that I listen to advertise it, I see ads for it everywhere. I would
think that unlike stocks where you must buy through a broker (for a fee), gold
can easily be bought by anyone. So what makes the business of helping people
invest in gold so popular?

~~~
bob1029
I cannot imagine investing in these types of assets. For those who speculate
on gold & silver, would you also purchase futures contracts on oil, pigs, and
grains? It's pretty much the same idea unless you are having gold bars shipped
to your home.

If your objective is to make money "quickly", I'd recommend averaging any cash
you have sitting around into a market-wide ETF ASAP. The trick is to not get
emotional. You have to hold every last share through events just like this
one. If you don't use leverage or purchase options contracts you can literally
forget the stock market exists when monster events are occurring. Assuming you
diversified, there's really nothing to worry about under any circumstance.
Just keep buying the same market-wide funds on a regular basis. Never sell.
Ever. Selling is how you lose the game.

All of this fear has created a generational buying opportunity.

------
Animats
Nobody uses silver as a store of value any more. It's more of an industrial
metal. With not that many industrial uses.

------
woodandsteel
People accumulate gold as a hedge against society collapsing sometime in the
future. But if society collapsed, then gangs of young men with guns would hunt
down all the people with stores of gold, and take it away, and shoot them
while they were at it. Seems like you would be safer if you didn't have a
bunch of gold.

------
marcrosoft
If there is on thing you can count on it’s people over reacting. If you hold
uncorrelated assets and rebalance them at mechanical levels as people react
you’ll have a much smoother ride to the top. Gold and long term treasures play
a big role in this type of portfolio.

Edit: lookup volatility harvesting

------
aSplash0fDerp
Precious metals and gems will still provide value in areas of the world that
are not devastated by war or disease.

If the dollar goes tits up, I think the criminal accounting will take down
gold with it, leaving the next in line metals to reap the rewards of
integrity.

You cannot trust any of the accounting with gold.

------
freepor
The value of these metals is largely driven by the same things that drive any
consumer fashion, so the gold/silver ratio hitting a new high isn’t any more
weird than “hoop earrings hit a 5,000 year high in popularity.”

------
bashwizard
Ah goldbugs and silverbugs. I've heard them talk about the economic meltdown
for over 20 years now and how I should hoard physical gold and silver and how
it will turn me into a MILLIONAIRE!

I bought real estate instead post 2008.

------
ctack
It's the highest it's been since the 1940s. Sensationalist headline.

~~~
MR4D
You didn’t read the article well enough - it blew through that record, but in
1940 it held the record for a year (we’ve only done it for a short period so
far).

~~~
ctack
How is breaking the 1940 not more accurate?

~~~
MR4D
You said “highest since 1940” and called it sensationalist.

But it _broke_ the 1940 record, which means the title is correct and not
sensationalist.

~~~
jml7c5
By emphasizing a past date, the headline (and article itself) gives the
impression that the record was set over 5000 years ago, and that this is the
first time the gold/silver ratio has been higher than at that point in time.
"Since 1940" would provide better context, and would not prompt such
confusion. It seems likely that the reference to 5000 years is specifically to
sensationalize the news and draw clicks.

As an illustration of the absurdity of such a style, one could equivalently
put "in over <x> thousand years" in the headline of pretty much any metric
that has been on an upward trend through its history.

------
toohotatopic
Could it be that people who used to buy bitcoins are now buying gold and that
they are preventing the price correcting that every other metal is
experiencing?

~~~
thedance
It's hard to imagine that the kinds of people who bought bitcoins as an
investment have anything leftover with which to influence the gold price.

------
brentis
Read all of this thinking of platinum. More valuable than gold and similar
utility to silver. Wonder how that ratio looks.

------
RosanaAnaDana
That headline and they don't have a plot going back 5k years? I am disappoint.

------
100-xyz
Looks like a once in a life time opportunity!

~~~
flyGuyOnTheSly
To do what exactly?

~~~
bhandziuk
To buy a bunch of precious metals which can be exchanged for goods and
services! Much like actual money but less conveniently.

~~~
spaceflunky
Far far less convenient

~~~
MrLeap
I buy silver rounds every once in a while when the price seems cheap. They're
very handy for a few different kinds of transactions.

1\. They're handy for showing your appreciation and getting past a common "I
don't _want your money_" barrier in my region.

If I pass out a bunch of silver rounds to friends with krakens on them while
loudly proclaiming "8 ARMED SEA GODS, TO COMMEMORATE THE FACT THAT MANY HANDS
MAKE LIGHT WORK" everyone who helped me smiles broadly, laughs and receives
them. An aura of gratuity emanates from the situation from everyone involved.

If I were to pass out envelopes with a 20$ bill in each, it would make
everyone feel weird. Many would get returned, I probably wouldn't have friends
anymore.

2\. Garage sales ran by older people. I've found a silver coin has, on
average, a higher buying power than equivalent cash. For 1oz of silver, a nice
gentleman agreed to trade a circular saw, bench grinder parts, an electric
motor, lathe parts, a few hammers, a tool box and an angle grinder last year.

3\. Gifts for kids. 1 oz silver rounds are not that expensive, shinier than
most objects, larger than most people expect, and tend to be received with
wide eyed awe every time I've given them as gifts.

Silver is fun.

~~~
uwuhn
Where do you recommend buying them?

~~~
MrLeap
JMBullion, ampex, sdbullion are the obvious answers. I tend to like pawing
through inventory in person. I live next to Meierotto Jeweler's, I like going
there because it reminds me how poor I am, and they generally let me paw
through things without getting weird about it.

------
mrfusion
So why isn’t Silver keeping up?

------
op03
America has lost its hive mind

------
anonu
Silver is an industrial metal. Gold has no real industrial application and is
mostly a store of value. So the article is comparing apples and oranges...

~~~
neuronic
What? Gold is used in a lot of electronics.

~~~
DubiousPusher
It is but silver has many more applications overall. Silver is driven about
50% by industrial need whereas gold is about 10%

------
samdung
For years on and on financial advisors tell me not to invest in Gold. And on
every '5 year time block' i have seen Gold outperform every other thing of
value. The other thing with Gold, is it gives you peace of mind; not having to
monitor your portfolio every often.

~~~
nl
But... it hasn't?

If you do rolling 5 year blocks over the past 20 years I think right now (as
in the last 3 days) is the only time gold out performs the Dow Jones.

And even today - on one of the worst days in stock market history - gold only
outperforms it by 12% (26% vs 14%).

The gold price now is ~$1500/ounce. In March 2015 it was ~1100/ounce[1].
That's 26% increase. In March 2015 the Dow Jones was 18127, and now it is
21237. That's 14%

That's not a great record for gold! Your financial advisors are right.

[1] [https://www.bullionbypost.co.uk/gold-price/10-year-gold-
pric...](https://www.bullionbypost.co.uk/gold-price/10-year-gold-price-chart-
usd/)

