Thursday, 11 August 2011

Battle of the havens: Gold versus bonds

Since July 22, gold has outperformed bonds, with a 9.6 per cent return versus a 5.6 per cent return for the bond fund. Both assets, of course, demolished the 14.4 per cent slide for the S&P 500.

Over the longer term, though, gold’s lead over bonds becomes more pronounced. In 2011, gold has gained 25 per cent, which is more than double the total return for the bond fund -- although both trounced the 7.5 per cent decline for the S&P 500.

Over the past year, the difference is huge: Gold has soared 46.5 per cent versus a 7.9 per cent return for bonds.

Read the full article here: