Jump to content

Sprott video on Silver and Gold


stahleyp
 Share

Recommended Posts

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

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...