Gold – The Only Money That Can’t Be Debased

Read more on this subject: Gold and Silver
News Story Source: By Egon von Greyerz Gold Switzerland
In 1980, global assets, including property, were less than $20 trillion. Today almost 40 years later they have grown to $524 trillion. That is a compound annual growth rate of 9% which is quite remarkable for a 38 year period. Global assets have gone up 26 fold during this period.

In the same period, gold went from an average price of around $650 in 1980 to $1,300 today. So whilst global assets have gone up 26x since 1980, gold has just managed to go up 2x. Admittedly gold started at $35 in 1971 so it had already benefitted from a substantial rise by 1980. Nevertheless, since 1980, gold has been totally ignored both as an investment and as insurance or wealth protection. The massive increase in money supply through credit expansion and money printing has gone into conventional assets such as stocks, bonds and property but not into gold.

Gold has been a forgotten asset and investment for 38 years and has not even kept pace with inflation with gold's 1.8% annual growth rate sin
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