Gold Marks 10 Stellar Years

December 29, 2009

By: Patrick A. Heller

Now that we are a few days away from the end of a decade, expect to see many analyses showing the best performing assets over the past 10 years.

Over the past decade, the U.S. stock markets have turned in horrible results. The Dow Jones Industrial Average, Standard & Poors 500, and NASDAQ indices are all below their levels of 10 years ago, even ignoring the effect of inflation. While there are a select few individual stocks that have risen spectacularly, it is doubtful that any investors owned only such assets.

Treasury debt and high-grade U.S. corporate bonds have not really kept up with inflation, before having to pay income taxes on the “interest income.”

The residential real estate market rose, then gave back almost all of its gains.

On average, commodities have outperformed the inflation rate. Gold and silver are among the top performers among commodities. Ignoring inflation, for example, gold is up more than 14 percent per year for the decade. If you purchased physical precious metals and are still holding them, you have not been subject to any income taxes yet.

Different asset classes have market booms and busts. No one category is the constant top performer. However, the financial calamities that explain why the prices of gold and silver have been higher at year end for eight consecutive years have not been resolved. That is why, at the end of 2010, I fully expect the prices of gold and silver to be much higher than they are now – once again beating the effects of inflation.

Gold and silver have enjoyed shining results for the past decade. I look for even bigger increases in the year ahead.

These articles are provided for informational purposes only and were obtained from publicity available sources on the Internet. These articles do not constitute financial advise or trading recommendations by Global Asset Management ("Global"). Global neither warrants the accuracy or completeness of the information contained in these articles, undertakes to update them, nor is it responsible for any omission or error contained in these articles. Viewers are encouraged to conduct, and should only rely on, their own independent research.
The purchase or sale of precious metals involves substantial risk and volatility. If you are contemplating purchasing and/or selling precious metals, you should consult with an independent financial advisor to learn about the inherent risks. Global does not render, and nothing in this website should be construed as, financial advise, a trading recommendations or a solicitation for the purchase or sale of precious metals.

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