Page 23 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
To me, this looks like there could be some potential for commodities to go up in value. It’s certainly not at the bottom, but there could be more to go. Again, what do you think? Although gold is only a component of the index, as far as I was concerned, it belonged to an asset class with potential.
But what is the potential? What could happen?
We know that investment is all about timing.
Just look at what happened in the last bull market in the late 1970s and early 1980s and compare that (the orange line) with the 2000 bull market (the red line).
Source: ChartsRus
History would have to repeat itself, but if it did, not only could gold be a useful “defensive” asset class (more on that later), but it could generate some stunning returns.
This reminds me of the quote from Sir Winston Churchill at the beginning of this book: “The farther back you can look, the farther forward you are likely to see.”
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