Gold

What Investment earned a minimum ‘before-tax’ income of 20% each and every year since 1975?

Not this one.

Compound Interest Calculator

IF (and that’s a big if) one had been able to invest $100 in 1975 in a guaranteed tax-free 6% account compounded monthly it would have grown to $862. by 2011.

That is a taxable profit of $762 and represents a yield of 762% on the investment, or 21.17% per year (762/36).

GOT GOLD?

The following table demonstrates the same analysis based on purchase of GOLD at historical prices and a 2011 ‘value’ as $1800. These annualized yields are tax-free – but taxpayers should report and pay all taxes due.

  • 1975 $200/oz  –  22%
  • 1985 $300/oz – 19%
  • 1995 $400/oz – 22%
  • 2000 $300/oz – 45%
  • 2007 $700/oz – 39%
Year Buy Sell Profit % Yield Years YIELD – YEAR
1975 200 1800 1600 800.00 36 22.22
1985 300 1800 1500 500.00 26 19.23
1995 400 1800 1400 350.00 16 21.88
2000 300 1800 1500 500.00 11 45.45
2007 700 1800 1100 157.14 4 39.29

22% annual yield since 1975

45% annual yield since 2000

22% annual yield since 1995

19% annual yield since 1985

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s