Guest Posted March 16, 2011 Share Posted March 16, 2011 Not a whole lot new here, but some of you guys might enjoy it http://classicvalueinvestors.com/i/2011/03/silver-will-keep-outshining-gold-sprott-says/ Link to comment Share on other sites More sharing options...
Guest broxburnboy Posted March 16, 2011 Share Posted March 16, 2011 More recent Sprott Commentary of interest, perhaps, to those who believe that gold is in a "bubble" http://www.industrymailout.com/Industry/Home/5274/22439/images/02%20_11_Debunking%20the%20Gold%20Bubble%20Myth.pdf Cheers Link to comment Share on other sites More sharing options...
watsa_is_a_randian_hero Posted March 16, 2011 Share Posted March 16, 2011 Not sure where he gets his data for his ratios of gold/world assets.... ...but his basic premise that gold/world wealth should be a stable ratio, is something a believe (partially). I think gold should rise, over the long term, at a rate greater or equal to inflation; but equal to or lesser than nominal GDP (it can't rise faster than nominal GDP...or nobody would have any money to buy it with...). Over the last century, world-wide nominal GDP figures are not the most accurate. However, using US GDP as a proxy...in US currency terms Gold has risen an average of 1.0% over CPI over the last 90 years, but -2.4% under nominal GDP over the last 85 years (see attached chart). I would guess other "real" assets, such as real estate, would show similar return profiles (higher than CPI, but lower than nominal GDP). Link to comment Share on other sites More sharing options...
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