SGM Metals: Gold Averages 19.56% Gain Annually!

Dec. 16, 2011 - PRLog -- With China’s economy reaching a tipping point conveniently at the same point where all of Europe is frozen with fear regarding the accepted wisdom that the European Union will be dismantled sooner rather than later, gold has once again catapulted into the spotlight as the wise choice for asset allocation. The chart is priceless as it clearly illustrates the true rate of inflation (not the government’s magic inflation number) for the decade as well as the true performance of gold. The brilliance of this chart is the net gain of gold prices, as well as the net rate of inflation then combined with one another to display the true net result of gold’s appreciation after discounted for the rate of inflation on an annual basis. This arrangement of data provides you with a rare glimpse into the acceleration of the Federal Reserves inflationary policies and the consequences that accumulate as a direct effect of the reduction in the purchasing power for US citizens. The genius of this arrangement comes in the final column where we get to see the ‘real rate of return’ which is: gold’s appreciation – inflation rate = gold’s real rate of return

The statistic that emerges from this compilation of data is the fact that with the exception of the two flat years, gold managed to gross no less than 20% per year and once over 30%. Once the rate of inflation is offset the real returns of gold still maintained an average of 8.5% net annually for investors who wisely selected a more stable market and rejected the idea that participating in the circus of Wall Street with the talking heads on TV telling them what the 'hot picks of the day are' as not beneficial to their overall retirement plans.

The most glaring statistic in this compilation is not gold’s performance believe it or not, to me it is the 9.3% average rate of inflation at the hand of the FED’s reckless inflationary policies. Now imagine if this data was to be dishonest and instead of the true rate of inflation they chose to use the government’s magic inflation calculations. Gold’s performance would be practically 20% across the board! This is the data that you aren’t going to find in the garbage that is pumped into your brain by the ‘stock babes & elder market wise men’ that are well groomed and force fed with teleprompters that sing the Wall Street’s praises on the boob tube. Investors would do well to wake up to the real assets that have out shined everything for the last decade as gold is up 582%, silver is up 890% while the DOW is up roughly 4% since 2001!

Gold has NO COUNTERPARTY RISK! There are no MF Globals’ with money missing out of segregated customer accounts or high frequency traders moving billions of dollars in and out of the market in nano seconds looking to create 1/2 pip differentials to profit from while you are holding stocks for the long term. Wealth preservation is quietly becoming in vogue again, but the accepted wisdom is that it is business as usual in the stock markets. The problem is that while the investment banks are pushing stocks on you they are quietly buying all the gold & silver they can get their hands on, why else would central bank gold buying be up 550% year over year? Establish your depression proof insurance policy now and let the late comers bid up your gold & silver holdings to prices you never thought would be attached to the price of precious metals when the confidence game of the fiat currency system turns sour.

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SGM Metals strives to offer not only wealth preservation precious metals investments to offset weakness in the economy, but to help educate our family of clients to better identify the threats to their financial security.