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Sprott video on Silver and Gold


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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).

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