Why Hold Cash, Gold or Silver?

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If you deposited $1000 (New Zealand dollars) in your bank account 1 year ago, and withdrew it to spend on goods today, it would have lost an average of 5.73% of its purchasing power. $1000 in cash from 1 year ago would buy you $942.70 worth of goods now.

1967 dollar now worth much less
Now we need to earn $1,918 to buy the same amount of goods only $100 bought tin 1967!

If you invested that same $1000 in gold 1 year ago, the gold would have gained an average of 13.06% more purchasing power. $1000 in gold 1 year ago would buy you $1130.60 in goods now.

Gold has appreciated an average of 13.06% per year over 16 years
Gold has appreciated an average of 13.06% per year over 16 years

If you invested that same $1000 in silver 1 year ago, the silver would have gained an average of 10.74% more purchasing power. $1000 in silver 1 year ago would buy you $1107.40 in goods now.

Silver has appreciated an average of 10.74% per year over 16 years
Silver has appreciated an average of 10.74% per year over 16 years (in NZD)

So, which asset is wisest to hold?

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  1. https://www.inflationtool.com/new-zealand-dollar
  2. https://goldprice.org/

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