Gold versus Cash the past 40 years

edmundfitzgerald

Gold or cash ?

Have you ever wondered about gold versus cash over a longer period of time say 40 years? In 1970 if you purchased $100,000 of gold at $35 per ounce you would have purchased 2857.4 ounces of gold.
That gold at the 2011 spot price of $1341 would be exchangeable for $3.83 million USD.

Surprisingly the dead asset that pays no interest looks quite interesting,

Further if you took that same $100,000 and put it in an interest bearing account at 8% for the same time period and assume the most tax you paid was 20% on your interest in 2011 your bank account would be worth 1.155 million dollars.

Frankcoins

<< <i>Gold or cash ?

Have you ever wondered about gold versus cash over a longer period of time say 40 years? In 1970 if you purchased $100,000 of gold at $35 per ounce you would have purchased 2857.4 ounces of gold.
That gold at the 2011 spot price of $1341 would be exchangeable for $3.83 million USD.

Surprisingly the dead asset that pays no interest looks quite interesting,

Further if you took that same $100,000 and put it in an interest bearing account at 8% for the same time period and assume the most tax you paid was 20% on your interest in 2011 your bank account would be worth 1.155 million dollars. >>



Americans could not buy gold in 1970 at the artificially low price of $35/oz. Once it became legal in 1974 it almost instantly jumped to the $100 to $200 range.

$100,000 put in the stock market S&P 500 in 1970 would be worth $4,975,000.

http://www.moneychimp.com/features/market_cagr.htm

CoinCrazyPA

There was plenty of gold in the Black market. I remember my dad buying a lot of Krugerrands.