Investing in 2020 looks easy in hindsight – almost everything is up and smashing the records.

Gold

Gold has reached its highest price in history, breaking the US$2,000/oz barrier. Many reasoned that it was due to the massive liquidity pumped into the markets by the Fed, resulting in a depreciating US dollar. Investors are hedging a weakening USD by buying gold and prices were bidded up. It’s tempting to want a piece of gold when you look at the returns in the table below. You would have made 14% if you bought gold just a month ago. A 6x return if you have bought and held it for 20 years. I think the only worst time you could have bought was in 2011 where the gold price was just shy of US$1,900. Even so, you are still up 5%. Would gold go up further? Should you buy gold? I realised that people are only interested to invest because something has gone up in price....