Gold hits R19000/oz, up 16% this year
- It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.
- Mark Twain
The pet rock is continuing its upwards trend for the year. It is currently standing at R 19,150/oz, up 16.6% year-to-date (as measured in South African Rands).
The table below shows the price of Gold in South African Rands (ZAR) over the last 30 years, and the returns a saver would have earned had they bought and held Gold over various time periods since then:
|Date||Price/oz||Time||Total Return||Annualized Return|
|1 Jan 2016||R 16,406||5.4 weeks||16.6%||343%|
|8 Feb 2015||R 14,233||1 year||35%||35%|
|8 Feb 2014||R 13,833||2 years||38%||18%|
|8 Feb 2011||R 9,852||5 years||94%||14%|
|8 Feb 2006||R 3,450||10 years||455%||19%|
|8 Feb 1996||R 1,469||20 years||1204%||14%|
|8 Feb 1986||R 667||30 years||2771%||12%|
I found the quote I added at the top of this post in a movie called The Big Short, directed by Adam McKay, and starring Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.
McKay managed an amazing feat in that movie: he somehow presented the cause of the 2008 housing market crash, a topic that most people find either too boring or too complicated to understand, in a way that is both entertaining and easy to grasp.
If you haven’t seen it yet, I highly recommend you do.
It only shows the tip of the ice-berg, but if most people were aware of even that much I cannot imagine how the system will remain intact.
In the meantime, for those of you who, like me, have been waiting so long, I believe the time is finally here. Sit tight, avoid counter party risk and enjoy the ride.