In 2002, gold was priced in USD @ 309.73/ounce. If one had $125,000 and invested it solely in gold, one would have purchased 403 ounces of gold. Let's say instead, that same person invested that $125k in the stock market and managed a return of 7.2% which would have doubled their investment to $250,000 in 2012. Today, with gold priced in USD @ $1764.28/ounce (price at the time of this writing), that $250k would purchase 141 ounces of gold!
2002 An investment of $125,000 in gold would purchase 403 ounces of gold.
2012 An investment of $250,000 in gold would purchase 141 ounces of gold.
Most people would say "That's because the price of gold has gone up, retard!" Really? Let's look a bit further because here is where it all gets interesting...
When one compares the VALUE of gold, priced in other commodities, one gets a different picture. For instance, the value of gold compared to oil, has remained remarkably steady since the late 70s and has actually decreased slightly. Assuming that the value of gold HAS remained steady yet the price in dollars has gone way up, the suggestion is that the value of USD has gone way down.
By the way, those 403 ounces of gold (bought for $125,000 in 2002) today? $711,004.84
~The price of Gold is USD is changing so the numbers will be off a little bit. The main point remains... I'd be just a little bit less cocky about that "killing" you're making in the stock market. I'd say someone is making a killing off of you...