I’m willing to bet the price of the gold cube will be higher. Past historical trends seem to validate that.
Since President Nixon closed the gold window in August of 1971, the price of gold has increased more than 37-fold. From a price of $40.65 at month-end August 1971, gold has risen to $1,528 today. A $1,000 investment in gold at the end of August 1971 would be worth over $37,000 today—a compounded annual return of 7.8%.
How Does Gold’s Return Compare to Stocks and Bonds?
Gold’s 7.8% return since August of 1971 compares favorably to the 7.4% return that intermediate-term U.S. Treasury securities delivered over the same time. More surprising to some is that gold has even appreciated more than stocks over this period. From August of 1971 through today, the S&P 500 index has increased at a 7.3% average annual rate.
These numbers for the S&P exclude dividends and the reinvestment of dividends, but gold’s returns relative to stocks remain impressive for an asset that many consider to be the ultimate safe-haven. (emphasis mine)
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