Gold Pushes over $1000 an Ounce What Does this Mean

Investing in Gold Myth
Gold's recent push above $1,000 an ounce is finally catching Wall Street's attention. And yet many of the talking heads on TV still rush to say that gold is not a good long-term investment, that it's "dead money" because gold doesn't really do anything. That's a lie.
Investing in Gold Truth
Gold does something very important — preserve your wealth in an age when paper currency can be printed by the metric tonne. And gold has been doing a lot more than that since 2001. Take a look at this chart showing the 10-year performance of gold vs. the S&P 500 …
Investing in Gold History
Gold started 2002 at $279 an ounce. Talk about coming a long way! Meanwhile, speaking of dead money — the S&P 500 has lost 20 percent of its value in a decade.

Gold vs. S&P 500

You might think this kind of compare-and-contrast performance would be worth the attention of the chuckleheads in the mainstream media. Apparently not. Maybe it's a big secret they intend on keeping from you.

Or maybe it's the scale of the chart I'm using? On a 15-year chart, gold STILL beats the performance of the S&P 500. You have to go to a 20-year chart to see the S&P 500 outperform gold. And we don't all have 20 years to wait around.

Anyway, that's the past. What about the future? Well, here are some interesting statistics.
Investing in Gold Historic Facts
* Going back to the 1800s, the average length of a secular (long-term) bull market in stocks is about 14 years. They can be shorter, but even by this measure, if the bull market in commodities is average, it should have some years to run.

* Commodities (natural resources) are generally acknowledged to have been in a big bear market between 1980 and 2000 before shifting to a bull market. A commodity supercycle — which I believe we are in now — can last 20 to 25 years.
For more investing tips see Investment Strategy Notes

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