With the current euphoria surrounding gold investing, let’s step back and take a look at the numbers. In 1980 this precious metal traded at $664 per ounce. It recently closed at $1,501, a number that is more than double what it was thirty years ago, but what kind of investment was it really? That averages out to 2.6 percent annual return! Long term gold bugs are not even keeping up with inflation.
A better strategy would be to invest in capitalism which, to our way of thinking, is personified by income property investing. This real estate strategy has not only proven to be the most profitable historically but is also the face of the sort of rugged individualism that makes America run. The income property you buy stands on the very earth that makes up our planet, and the house or apartment built upon it represents the culmination of risk and reward. Some construction firm took the chance that if it expended money and resources to add value to a piece of vacant land, investors would come, and here you are.
This is how you invest in capitalism. We would be the first to agree that a Wall Street investment also qualifies because the stocks you buy provide operating capital for small and large businesses around the world. There’s no denying those businesses need your money. The problem with sinking your resources there is that the buy/sell game is controlled by insiders and the honest truth is that the average investor gets soaked when he plays in the stock market. From outright crooks to ridiculous transaction fees and administrative costs, the whole thing is rigged against you from the start.
Considering the anemic stock market returns in the recent short term – 1.7 percent annual since 2000 – it’s just a bad investment right now, though will likely improve at some point. But the purest, most profitable way to invest in capitalism remains real estate.
The Bonus Commissions Team
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