Incrementum AG produces an annual report on the state of the Gold Market. One of the charts it produces compares the Purchasing Power of the US dollar to the Gold Price since 1900. The chart is reproduced below from the 2019 report.
- On the Left Hand Side (LHS) is the US Dollar purchasing power.
- On the Right Hand Side (RHS) is the Gold Price Multiple (i.e. how many times the Gold Price has increased).
To put that in context:
If you held USD 10,000 in cash in 1900 and did nothing with it, today it would buy you about USD 400 worth of goods.
If you held USD 10,000 in gold in 1900 and did nothing with it, today it would be worth USD 780,000.
Not bad for a boring piece of metal that people say does nothing for them – no dividend, no yield, no equity. So how do you want to save your wealth? Cash or gold?