Which investment would have netted you a 122% return?

“Where should I put my money to get the best return on investment?” This is a question investors from novice to expert ponder with regularity.  The choices can be mind-boggling. When considering investment options, the numbers should speak for themselves. Let’s take a look at gold.

A $10,000 investment: your returns with gold and stocks

Had you invested $10,000 in gold bullion in 1999, your initial investment would have grown to $22,205 by 06/30/06 – an amazing 122% percent increase.

That same $10,000 investment in stocks of the S & P index would have netted a meager $10,162. That’s a 1.162% increase.

Best One Year Return in Past 25 Years

-RARE COINS: 198.8%

-GOLD BULLION: 100.2%

-STOCKS: 31.1%

 Lombra, Raymond E., PhD., The Investment Performance of Rare U.S. Coins, Penn State University, February 2006

Gold Performs Better than Stock Market

"Equity markets continue to trend lower since the 2000 peak, despite the most stimulative monetary and fiscal policies on record... However, as a 57-year old man, I do not expect to live long enough, even if I live to be 100 years old, to witness a new high in U.S. equity prices."

"Nobody, it seems, is noticing what’s happening as gold moves higher in what promises to be an historic, monster bull market… What we’ve experienced so far is the first phase of what’s shaping up as one of the great bull markets of our time. In this first phase, sophisticated, knowledgeable people take their positions. And that’s what has been happening. This isn’t the crowd buying gold. This isn’t the mutual funds buying gold. This isn’t your neighbor buying gold. This is the big money, the wealthy, and the people around the world who know what’s going on who are buying gold.”

—   Richard Russell, editor Dow Theory Letters