Gold outperformed most assets in the first quarter of 2009.
On the Matterhorn Asset Management website the Gold charts pages show that gold gained between 4% and 7% against major currencies in Q1 2009. In spite of being well off the highs for the quarter gold still showed an excellent return.
But even more importantly the Dow Jones declined 17% against gold in the first quarter with similar falls for most major stock markets against gold.
In the last four years, since the beginning of 2005, gold has gained over 75% against the dollar, 100% against the Euro and 170% against the pound whilst the Dow has lost 62% against Gold in the same period.
Not only has gold performed extremely well over the last four years (and even better since 1999) but it has also served as the best form of wealth protection – if held in physical form, as it must be!
We have in the last few years advised investors to buy gold on pullbacks and not on breakouts. The recent pullback of $120 to $880 which could extend down to $850 is another excellent opportunity to buy gold for long term investors.
In our view, we haven’t seen the real move in gold yet which will come as a result of unlimited money printing by most governments due to exponential growth in losses on toxic debts and derivatives.
To hold physical gold is your only protection.
For 10 year charts of Gold against the US dollar, Euro, Pound, Swiss Franc and the Dow Jones click on Gold charts