Since 2011...

renman95

...the NAZ is up over 100% and approaching 6,000 while gold is down about 25%.

Smoe would say the NAZ is up only 15% since 2000 and gold is up nearly 500%.

Others would counter with gold being up 650% since American's were allowed to legally own the precious metal. The NAZ rose 8500% in that time.

What would you say?

derryb

I'd say the NAZ is in a bubble and gold is not. What matters is what gold does in the future. Your numbers show that gold price adjusts to the bubbles. How big the equity bubble can become remains to be seen. However, it always pops. Which do you want to be holding when it does?

OPA

Your asking this question in a PM Forum? I would venture to guess, that the answers received here, would be similar to those of derryb's post. Anywhere else...well, you'd be in a different ball game.

hchcoin

I say buy all kinds of different stuff - commodities, futures, options, stocks, real estate, rental properties, guns and butter, coins, precious metals, bonds, mutual funds, food, clothing, cars, entertainment...................... Why limit yourself to just one thing?

rawteam1

I'd rather be be holding out of the money puts in size... million times better than gold...

This is all speculation though, on an ill conceived vision of db, of course...

bluelobster

In a capitalistic economy, equities are a long term investment, metals are a hedge.

Companies produce goods and services, gold supplies the "precious" that people like to cuddle with.
Don't get me wrong, I like to cuddle with some myself, but she's a cold hard woman.

mariner67

Diversification and asset allocation are the proven key to long term capital appreciation.
Never put all your eggs in one basket.
Simple.

rawteam1

That's some bad advice 67, but status quo...

Coinstartled

Naz is an easy example as that is where the action has been. Go back to the early 70's and use the Dow 30 components at that time. I suspect that the results will be much more subdued.