250% - 400% Return
The following is from the August 4th edition of the Delaire Report.

And, then there are those “students” of economics who fail to see gold as a store of value despite the fact that since 2001 it has risen in “value” between 250% and 400% no matter what part of the world you live in. And, then there are those commentators who repeatedly state that gold is a useless investment because it does not pay any interest.


According to my calculations if you invested in fixed interest bearing instruments such as bonds and you were lucky to get say 5% per annum, on a compounded basis it would take 15 years to double your money. My mathematics tells me that even though gold does not pay interest, I would ultimately be better off investing in gold than in bonds.

At the moment the yields for 10 year UK gilts are paying 3.32%. Australian 10 year paper is paying 5.2%, Switzerland 1.48%, US 2.91%, Germany 2.66% and France 2.95%. Of course there are government bonds that pay more than 5% pa, such as the Greek 10 year bonds that are currently 10.31%, but then you face the possibility of default. I cannot see the price of gold going to zero.