How does gold measure up against other investment types?
For investors considering adding gold to their portfolio, it is sensible to do a little research to see how physical gold measures up against other forms of investment.
Here, we offer in-depth analysis on gold versus other investment types so you can weigh up the advantages and disadvantages of each asset for yourself.
Gold and other assets over the last decade
An in-depth analysis and research into gold versus other assets during the 2006 to 2016 period leaves no doubt; gold comes out on top and outperforms all other asset classes over the last decade. The data speaks for itself and provides further proof, should any be needed, that the value of gold as an investment asset is no flash in the pan. Consistently strong and reliable, it provides better returns than other options such as property, FTSE and bonds decade after decade.
An investments of £100k in gold back in 2006 was worth £286k a decade later, significantly outperforming inflation and all other assets over the same time frame.
Underperforming inflation by £13k over the same period meant that a £100k investment in property in the UK in 2006 resulted in an underwhelming property net of just £117k ten years later. That’s just a fraction of the value of gold for the same time period and initial investment amount.
A 2006 investment of £100k on the FTSE 100 yielded £167k in 2016 – an asset that again comes in well below gold yields.
Sadly, as bonds track inflation, investments in this asset offered no returns at all over a ten year period.
Savings suffered a fall in absolute value in the period 2006-2016, despite seeing a minimal return on the initial investment due to interest rates.
When comparing the growth of gold against these other assets, the power and potential of gold is evident. As uncertainty in the global economy looks set to continue, gold investment offers a substantial investment opportunity and a much more profitable avenue than any other traditional asset class.
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