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Saturday, December 22, 2012

Rethinking The Asset Allocation of Gold

Part 2

By Tim Iacono 

A couple people have asked me what the chart from the previous post would look like using different time frames, so, a few more charts have been prepared and are shown below, beginning with a start date of December 31st, 2002, rather than December 2000 as shown earlier.



Obviously, not as big a difference as when starting two  years earlier, but still significant. There’s more…
Going back to Dec. 31st, 2004:
Back to Dec. 31st, 2006:
And going back to Dec. 31st, 2008:
There’s not much of a difference going back three years or less (i.e., starting out in Dec. 2009, Dec. 2010, or Dec. 2011), however, that shouldn’t be surprising since it has been the steady positive returns that make the difference for gold over the long-term and that’s all we’ve seen for stocks and bonds in recent years.

About The Author - Tim Iacono, a retired software engineer living in Bozeman, Montana, is the founder of Iacono Research. (EconMatters author archive here.)
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