Gold vs. Dividend Stocks

Investors typically make money when the assets they own increase in value and/or when the assets they own deliver dividend, interest or rental income. When combined, income and price returns result in the total returns equation. One asset that has generated positive total returns every year since 2000 is gold. Investors who bet on the yellow metal have generated 17.70% annual returns over that period. Right now the precious metal is hitting all-time highs, as many investors expect that the amount of monetary stimulus by the Federal Reserve would create massive inflation in the US. This speculative frenzy is catching up quickly, as investors bid up gold through one of the many vehicles available to investors who wish to dabble in gold – gold ETFs, gold futures, physical gold etc. For example, one of the largest ETFs in the US with over 50 billion in assets is SPDR Gold Trust... Read more