Monday, February 22, 2010

Gold is real wealth - Bill Bonner

One common complaint of those who don't like gold is that it offers no return.  Fair enough--but what kind of return has the S&P 500 offered over the last 10 years?  Worse yet, what kind of inflation adjusted return has the S&P 500 offered?  Maybe gold has some value after all.  Just ask Bill Bonner.
Gold is real money. At least, it’s as real as money ever gets. Gold represents wealth. It can be exchanged for wealth. And since the above-ground supply of gold grows about as fast as the economy itself, gold tends to hold its value over centuries. Today, gold is worth about the same as it was worth 2000 years ago.


FYI, Bonner is no Johnny-come-lately to the gold trade.  He touted the idea of "buying gold on dips" as half of his trade of the decade for, well, the last decade.



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