This may come as a surprise to many but, throughout the 21st century, gold bullion investing has delivered the greatest returns, as a top performing asset that has enjoyed a 23-year bull run.
Our study reveals the place of gold bullion as a key investment asset. It shows how the precious metal has earned a place as an important component of any diverse investment portfolio. Gold is also a great hedge against inflation.
The following graph showcases gold’s (XAU) unmatched performance:
Between 2020 and 2022, a gold investment would have yielded you a 530.57% return. In 2020, as the pandemic gripped the world, its price surged by 24%. Gold was resilient during the Covid-19 pandemic.
Why people still turn to gold for investing
Since 2000, gold bullion (XAU)’s performance has outpaced nearly all other asset classes. That’s measured on total returns including accounting for dividends.
Let’s take a look at the numbers:
- Gold: 530.57%
- Baa Corporate Bond: 321.84%
- S&P 500 (includes dividends): 298.61%
- Real Estate: 200.29%
- US T. Bond: 140.54%
- 3-month T.Bill: 41.18%
It’s official – since 2000, gold has performed better than property.
Gold bullion’s edge over bond markets
Traditional gold storage and ownership offer no investment yield. This is one of the most commonly cited disadvantages of investing in gold compared to more liquid assets. Yet gold bullion bested the top yield-producing assets in the bond markets.
The Baa Corporate Bond has seen consistent growth and has been a good investment. Returns since 2000 still fall way behind gold, though.
The US T. Bond has experienced fluctuations but has done OK. The three-month T.Bill, on the other hand, has disappointed.
Gold bullion’s dominance over stock markets
Gold bullion has surpassed nearly all of the major high-performing stock markets since 2000.
Compared with gold’s 530.57%, this is how the world’s biggest stock markets have performed between 2000 and 2022:
- S&P 1,455.22 to 3,389.5 (+164%)
- DJIA 11,497.12 to 30,606.48 (+166%)
- NASDAQ 4,069,31 to 12,888,28 (+217%)
- FTSE 100 6,930.20 to 6460.52 (-7%)
- Nikkei 225 18,934.34 to 27,444.17 (+45%)
- DAX 6,958.32 to 13,718.78 (+97%)
- CAC 40 5,912.72 to 5,551.41 (-6%)
- Shanghai Composite 1,409.68 to 3,473.07 (+146%)
- Hang Seng index 16,962.10 to 27,231.13 (+61%)
Returns shown do not include dividend payments.
Is gold bullion a top-tier investment asset?
Many view gold as a stability asset rather than a profit-driven investment asset. Yet, its performance has been remarkable since 2000. This is particularly the case as gold bullion investing yields no return (like bank account interest or dividends).
But that’s about to change.
- They produce a yield
- Physical gold bullion‘s market strength and innate price stability underpin their value
Generating a yield from your gold bullion investment
Kinesis gold bullion and silver bullion-based digital currencies are a sea change in the nature of investing. No longer do gold investors have to choose between a secure investment in gold bullion and a yield-bearing investment.
Kinesis also allows gold investors to generate a passive yield from their gold investment. They can do this through our unique transaction-fee-sharing yield model.
The Holders Yield
Kinesis offers a yield for simply holding gold: the Holders Yield. This passive income stems from a 15% share of global transaction fees across the Kinesis network.
Kinesis gold and silver let users:
- Tap into gold bullion’s price stability and strong market performance.
- Access to a never-before-available yield stream for investors in gold, the most prized investment asset.
- Two of the most precious metals underpin the value of Kinesis gold and silver digital currencies.
What about storage fees?
Kinesis users pay no storage fees for their physical gold bullion and silver bullion. Your bullion is safely stored and certificated.
Kinesis network transaction fees cover all storage costs across our extensive vaulting network.
Other Ways You Can Invest In Gold
Buying physical gold in the form of gold bars or gold coins is a popular option. But there are many other ways to invest in gold, each with its own set of advantages and considerations.
Remember that when you sell gold at a profit, you may be subject to capital gains tax. Speak with a tax professional to find out the current position.
Gold Certificates and Central Banks
Gold certificates are a popular alternative to holding physical gold. Historically, central banks issued these certificates as a promise to pay the bearer a specified amount of gold.
Today, they serve as proof of gold ownership without the need to store the physical metal. They can be a convenient option for those who want to avoid the logistics and costs that come with storing gold bars or coins.
Gold ETFs (Exchange Traded Funds)
Certain Exchange Traded Funds (ETFs) track the price of gold. When the demand for gold is higher, prices usually rise.
They offer a liquid way of investing in the precious metal without holding it physically. You can buy and sell them like shares on stock exchanges, meaning you can cash out quickly if you need to.
Gold Mining Companies and Buying Shares
Investing in gold mining company shares is a way to gain exposure to the gold market without buying the metal directly.
When the price of gold rises, gold mining companies’ profits often go up so you make money. However, mining is capital-intensive and risky. Because of this, prices could just as much go down.
The Royal Mint and Gold Coins
The Royal Mint, like other mints around the world, produces gold coins that are both collectable and a way of investing in precious metals.
These coins often carry both a numismatic and gold value. This combination makes them a unique long-term investment option.
Buying gold as an investment, by the gram
Kinesis prices gold by the gram, not by the ounce. This approach makes investing in gold accessible and affordable for everyone.
Gold’s strong market performance and historical price stability make it a portfolio must-add for many.
Kinesis assets are gold- and silver-backed and offer a passive yield, pricing by the gram, and no storage fees. Kinesis brings new value and profitability to gold investment, in a format truly accessible to all.
Strengthen your investment portfolio and protect your savings from inflation with Kinesis gold and silver digital currencies today.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.