Gold Pays No Interest
Once again gold has proved to be an effective preserver of wealth as well as an outstanding performing asset class. Since 2000, when the bull market in gold began, the price has moved from $250 an ounce to over $1400 an ounce. In 2010 gold was up 30% in US$, 35% in Sterling, 22% in Canadian dollars, 17% in Swiss Francs, 13% in Japanese Yen, 30% in Russian Rubbles, 25% in Chinese Yuan, 16% in South African Rand and $38% in Euro. And the average annual gain for gold in US dollars has been more than 20%, consistently for 10 years!

What amazes me is that there are still investors out there who continue to denigrate gold as an investment simply because it does not pay a dividend or interest. Yet, even a person who has the most rudimentary understanding of mathematics and who can manage to add a few prime numbers together can surely comprehend the following:

If you invested $100,000 in gold in 2000, the value of that gold is now worth around $560,000. If on the other hand you invested the same amount into bonds yielding say 8% per annum, on a compounded basis, the value of that investment is now worth around $216,000.

Uhh, which investment would you prefer? The one with interest, or without?