Gold Consistently Outperforming the Market This Century

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Gold finished July up a further two percent, signaling its best month since February. In the face of a dollar that is in continued decline, it is leading many investment experts and commentators to suggest that this most traditional of investment options is the safest bet going in otherwise uncertain economic times.

Gold is consistently trading above its 50-day and 200-day moving averages, a good indication that its performance will continue to remain strong. The declining value of the US Dollar, on the other hand, shows no sign of reversing and suggests that there will be no relief through an increase in interest rates any time soon.

Investing in gold

Like the real estate market, precious metals are one of those investment types to which people are drawn in financially turbulent times. Asarchetypal alternative investments, these are options that do not track with the overall market, in the way that investment trusts and stocks do, and therefore give a better prospect of bucking generally downward trends and providing a good return.

Some people assume that investing in gold is only an option for super rich Bond villain types, but the truth is that anyone can get involved. There are a number of ways to do so, from physically buying it in the form of bars, or the more manageable Canadian maple leaf gold coin form, to buying in to mutual investment funds, which typically hold a portfolio of various precious metals through a number of companies.

The future is bright

The other attractive thing about gold as an investment is that it is typically highly resilient, and is not subject to the dramatic peaks and troughs of other alternative investments such as Bitcoin, that are currently hitting the headlines.

Gold has been consistently outperforming the S&P 500 since the turn of the millennium. In fact, it has returned some 86 percent more than the market, if we set both at 100 on 31 December 1999 and then track performance. While the market has seen two major drops, both of which resulted in contractions of around 40 percent, gold has held its value through all.

As the political and financial landscape continues to navigate iceberg-filled waters, it is little surprise that more people than ever are placing their trust in gold. Is it time that you joined them?