Which one is your investment choice, investment in shares or gold for the best?
The data used in this article come from two sources. From Kitco website data for gold, and the Yahoo Finance website for the world stock market data which are represented by the Dow Jones Industrial Average (DJIA) as well as shares in the Indonesia Stock Exchange which are represented through IHSG. The data sample is taken at five years so that we get a picture of the situation that developed in Indonesia and global economy in recent years.
We will not use technical analysis, simply by using the three illustrations below to be able to give an idea of ??which one is more profitable when should choose investments between stocks or gold.
The first graph illustrates the performance of stocks in the world are represented by the DJIA. Very easy to see that the performance of the DJIA tends to decrease the range of numbers from the range of 12.500 to 11.500 in the last five years, on the contrary in the same period gold prices jumped from U.S. $ 600-an/ozt range of numbers to the range of numbers close to U.S. $ 1.800 / ozt.
Gold vs. Dow Jones Graph
This means that for the same amount of gold you have five years ago, the average we will get three times the number of shares you more when you spend to buy shares in the company’s world-class international exchanges. The second graph provides an illustration of this in the form of the trend of the Dow Jones Gold Ratio.
Dow Jones and Gold Ratio Graph
So how about the performance of stocks that exist in Indonesia? Average of the last five years is better than stocks in the global market, but still can not outperform gold in the same period. Furthermore, we can know that the performance was more fluctuating stock or more risky than gold. That is the trend of the last five years it gave the impression that gold gives better results and with a smaller risk.
Gold vs. IHSG Graph
But what about when the real sector-do people continue to move into gold? This is what I often say that gold is simply to maintain the value that the results of our efforts are not eroded by inflation. Investment is ideally if we could play our own funds in real sector well, then the result will be better than gold and will automatically be better than stock. So we can conclude that investment in gold is better than stock investment as it has been shown by the graphs above.
Other articles you need to read;
- 3 factors will dominate soon driving the gold price fluctuations.
- Does the Euro exchange rate down drastically affect on the fall in gold prices?
- The Easiest Way to Understand and Manage The Investment Risk
- Which one is your investment choice, investment in shares or gold for the best?
- Where are the trends in gold prices towards the end of 2011?
