If I bought gold on Jan 3, 1980 I would have paid about $560/oz.
Two weeks later I could have sold for $875/oz.
That’s $315/oz which is more than 50% gain in two weeks.
Gold purchased later in the year presents a whole different picture.
As far as San Diego real estate in 1980 – ask some apartment owners how much fun they had with their apartments during the 1980s – many of them were cashflow negative and had to provide incentives to attract tenants.
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The trick with investments is to get on the right side of large secular trends and then wait for them to express themselves fully.
1982 – 2000 was a secular bull market in equities while commodities sucked wind
in 2000 those trends reversed, IMO – we now have equities in a secular downtrend while commodities are in a secular uptrend
during 1995 – 2005 San Diego real estate was in a secular (?) uptrend and is now in a secular downtrend
I believe that gold bugs (and silver bugs even more!) will be swapping out of the precious metals when that secular trend fully expresses itself in the 2012-2016 timeframe. These ‘bugs’ will be buying equities and San Diego real estate at the bottom of their secular trends.
