Very exciting news today in our little experiment: Our precious metals have overtaken the S&P 500, and are now winning by more than $1000! In just 25 days, our gold and silver has appreciated by more than 8.4%, while our S&P 500 investment (Vanguard 500 Index Fund) has appreciated 2.1% during this same time. Now bear in mind that our net return from precious metals is 3.4%, not 8.4%, because our hypothetical metals were bought at a 5% dealer premium, as is customary for physical delivery. Still, the fact that we bought our metals near a top in gold and when the S&P 500 was relatively weak (and thus making our Vanguard 500 investment less expensive), makes today all the more remarkable.
I'm pressed for time this evening, but tomorrow I'll post a detailed recap of the week's trading, and my preview of what we can expect next week, and sometime this weekend will be the second part of my long-awaited (and much delayed) article, Are Precious Metals Prices Headed for a Major Crash?
The numbers:
Day 25
Results upon NY close of trading -- April 7, 2011:- Gold closed at $1,475.00 per oz, up $15.90 and 1.09% from yesterday. Silver closed at $40.93 per oz, up $1.29 and 3.25% from yesterday.
- VFINX closed at $122.40 per share, down $0.68 and -0.55% from yesterday.
Investment #1, Precious Metals:
- Percent return for the day: 2.21%
- Profit for the day: $2,237.43
- Total percent return: 3.4%
- Total profit: $3,387.04
Total investment value: $103,308.82
Investment #2, Vanguard 500 Index:
- Percent return for the day: -0.55%
- Profit for the day: $-567.12
- Total percent return: 2.1%
- Total profit: $2,126.70
Total investment value: $102,081.40
Advantage: Precious Metals (!), by $1,227.22
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