July 15, 2012

Historical Perspective: Gold, Stocks & Bonds

You had 20 years where gold and silver prices did nothing but go down and stock and bond prices did nothing but go up. If you had your money in gold for those 10 or 20 years, you missed out on enormous gains. It was that track record for the money managers and portfolio managers that started their career in the ’80s, which is when a lot of people came to Wall Street.

By the end of the ’90s, with the Dow at 10,000 and the NASDAQ at 5,000, but gold at like $250 and silver at about $4, it basically pounded out any sense of optimism on the metals or why to buy them.

Over the past decade or so, you have seen the flip side of that as you’ve seen stock prices have come down a lot relative to gold. Now you are getting a change where people are more comfortable holding gold because in the rear-view mirror it doesn’t look so bad for gold.

Bonds have not come down as much relative to gold, but I think the bond bubble is going to burst and will be falling for years too. And gold will look that much better. - in Business Insider

Related: SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD), ProShares UltraShort 20+ Year Trea (ETF), IShares Silver ETF (SLV)


Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.