Robert A. Bonavito, CPA PC

Gold, Stocks or Bonds: Which Is the Better Investment Option?

Today we're going to compare the long-term returns on stocks, bonds, and gold.

Because if you've listened to the radio or you turn on the TV, you always hear, "Buy gold, buy gold, buy gold." And if you talk to your brother-in-law, he's like, "Don't buy stocks, they're too risky. Buy bonds." So let's take a look at the long-term returns on these three investments.

Let's assume that in 1801 you put $1 in gold. You bought a dollar's worth of gold and then, you put another dollar in bonds and you put another dollar in stocks.

What would you have in the bank right now? What do you think? Right now if you put $1 in gold, you'd have $22 worth of gold right now. Not a lot of money.

If you put $1 in bonds in 1801, right now you have $17,000. Bonds are not a bad investment based on that.

But, if you put a dollar in stocks in 1801, you have $9 million. And that's why I think that if you're investing for the long-term, you really need to be in the stock market because long-term there's no comparison.

If you have any questions about this, feel free to give me an email.

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