Quote:
Originally Posted by retiredguy123
The S&P 500 stock index has a cumulative return of 260% for the same time period. Also, how will he avoid capital gains if he sells the gold?
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Yes, indeed. I wasn't implying that gold is a better performer than stocks but, it's a different asset class, owned primarily for different reasons, has not been a laggard longer term and, as stated, the market has had much to say about that shiny yellow metal by the increased price.
So, unlike what Alan Greenspan claimed, it is not "a barbarous relic" (an intentional misdirect, if I ever heard one!). Central Banks around the world continue to accumulate that asset.
Cap gains taxes can be avoided because the metal can be privately transacted and very often is. (Btw, most of my investments are in stocks and equity funds or shorter-term income assets and cash.)