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Originally Posted by Texas Contrarian
Incorrect. I pointed that out in my previous post, which you apparently didn't read or didn't understand.
Recall that the gold price was set by fiat to $35 (by FDR). Americans were prohibited from investing in gold bullion until January of 1975. In late 1974, gold was traded in London and Zurich at prices in the $175-200/oz range. (About 5X the 1930s fiat price established by FDR). Thus, if you loaded up on gold on 1/2/75 and held it until today, you would have have enjoyed roughly a 28X price appreciation (very roughly a 7% compounded annual rate of return.) Certainly not terrible, but nothing to get overly excited about.
On the other hand, the S&P 500 was sitting at just above $70 in early 1975, so today the index is almost 100X that of 51 years ago. And you'd be getting dividend income the whole time as well, while your gold would just be sitting there taking up space in your vault, looking pretty but paying you nothing.
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You're incorrect. Gold would easily be much higher if big banks weren't shorting it with paper contracts. You know the game is rigged. The S&P is rigged upwards while physical gold is rigged downward and the riggers seem to be losing control. The real price of gold is well north of $10K, there is no ceiling when you account for market rigging and currency creation into the trillions of dollars. The bottom for the S&P is $0.00 denominated in worthless currencies.
The U.S. dollar was unpegged from the gold price of roughly $42 per ounce (specifically $42.22) when the Bretton Woods system of international exchange completely collapsed in 1973.
5000/$42.22 = 118X return thus beating the S&P 500. If you account for a $200 premium to take possession of 1 oz troy gold the return widens to roughly a 123X return beating the S&P 500. Gold's high of $5600... 5600/42.22 = 132X return in early 2026. Today the USD is completely collapsing, foreign Central Banks hold more gold on their balance sheets than USD's as part of their reserve holdings. Gold always wins!
The S&P 500 is grossly overvalued whereas Wall St. and Main St. have become completely disconnected from reality while gold is severely undervalued, tell'em the rest of the story Tex.
