Zubair Bukhari

19th May 2020

Gold remains the best performing single asset class of the 21st Century

In what may come as a surprise to many, an analysis of various asset classes over the 21st century, reveals gold bullion has been the best performing single asset class.

The findings reaffirm physical gold bullion as an investment asset important in any diverse investment portfolio and demonstrate the position of gold bullion as an outright investment asset.

The below graph demonstrates the superior performance of gold (XAU), from January 2000 – April 2020, to other asset classes across several markets.
For a look at the resilience of the gold price to the Covid-19 pandemic, have a look at our blog post.

Over the two decades since the millennium, the investment asset gold bullion (XAU) has performed the strongest across all single asset classes. The above comparison shows the total returns, taking dividends into consideration.
Physical gold bullion (XAU) outperformed the strongest indices across both the bond and equity markets, over this period.

Gold bullion outperforms the bond markets

Despite traditional gold storage producing no yield, physical gold bullion narrowly outperformed the highest performing yield-producing assets, across the bond markets

The next best performing single asset to physical gold bullion was the Barclays 10+ US Treasuries TR (TSY); a bond market which has seen its yield fall from 6% in 2000, all way down towards 0 today. The Barclays 10+ US Treasuries TR, was closely followed by the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS).

Gold bullion outperforms stock markets

Physical gold bullion exceeded the performance of various high-performing stock markets. The analysis shows equities made up the 4th, 5th and 6th single assets in order of overall performance.

The best performing stock market over the period proved to be the S&P 500 Total Return (SP500TR), followed narrowly by The Morgan Stanley Capital International Emerging Markets (MSCI).

The next market in order of overall returns was the Morgan Stanley Capital International Emerging Markets Europe, Australia and the Far East (EAFE).

Physical gold bullion: a high-performing investment asset?

Often thought of as an investment asset of stability, rather than an investment asset for outright profitability, gold (AUX) has performed impressively. Especially, when we consider traditional gold bullion investment generates no yield.

However, a physical gold bullion investment with Kinesis unlocks an additional form of revenue, which only builds on physical gold bullion’s market strength and innate price stability.

Earn a yield from your physical gold bullion investment

With Kinesis gold bullion and silver bullion based digital currencies, gold investors no longer have to choose between a secure investment in gold bullion and a yield-bearing investment.

For the first time in economic history, Kinesis allows gold investors to generate a passive yield from their gold investment, through our unique transaction-fee sharing yield model.

The Holders Yield

Kinesis users access a yield simply for holding gold: the Holders Yield. A passive yield that is generated from a 15% proportionate share of global transaction fees across the Kinesis network.

The Kinesis system allows users to access physical gold bullion’s price stability and impressive market performance, while generating an additional unique form of profitability from the investment asset.

Learn more about all 5 yields accessible through the Kinesis system here.

How much are the storage fees?

In gold and silver bullion investment first, Kinesis users pay no storage fees for the physical gold bullion and silver bullion underpinning Kinesis gold and silver digital currencies.

All storage costs are covered by transaction fees across the Kinesis network, and made possible by our extensive vaulting network.

Physical gold bullion investment, by the gram

At Kinesis, our gold price is not tied to the priced of 1oz of gold. We decided to price gold by the gram, making physical gold bullion accessible and affordable as an asset investment for everyone.

Physical gold bullion’s impressive market performance and historic price stability make the investment asset an attractive addition to any investment portfolio. The unique passive yield and chargeless storage of Kinesis gold investment, combined with gold priced by the gram, bring new value and profitability to gold investment, in a format truly accessible to all.

Strengthen your investment portfolio with Kinesis gold and silver digital currencies today.