will talk about gold first as its the most talked and i beleive hyped investment.
Most people think that:
in 1979, price of 10 gm gold was Rs 937/-
today its at Rs 41,650
43x in 40 years
but gold cagr over 40 years period - 9.8%
over the same period inflation -6.3%
so gold real return =9.8%-6.3%=3.5%
during the same period Sensex return= 16.3%
Sensex real return =16.3%-6.3%=10%
"If u took all the gold in the world it would roughly make a cube 67 feet on a side.... it would be worth at todays market prices about $7 trillion(2013)...
for $7 trillion ... you could have all the farmland in US, you could have about 7 EXXON MOBILS and u could have
if you offered me the choice between gold and productive assets.... call me Crazy, but i will take the farmland and EXXON MOBILS(productive asset) rather than GOLD(unproductive asset).
There is a problem with our logic.
"Warren Buffet has an interesting view Gold"-