There is probably nothing that I could possibly say in a few hundred words that will change anyone’s mind about gold, especially if they are fans of the yellow metal. For them, the recent performance of the precious commodity is all that needs to be said about the noblest of the noble metals.
The price of gold has shot up from around US$500 an ounce in 2006 to over US$2,000 in recent days. There is even talk that it could go higher. For now, the four-fold increase in 14 years equates to an annualised return of 10 per cent. What could possibly beat that?
Well, the Nasdaq Composite Index could. The tech-heavy index has shot up from around 2,000 points in 2006 to around 11,000 points this month – an increase of five-and-a-half times. That works out at a 13 per cent increase per year.
Closer to home, rubber-gloves maker Top Glove Corporation Bhd (SGX: BVA) has gone from S$0.34 in 2006 to over S$9 a share in recent days....