Best Performing Real Assets
Following the end of Bretton Woods, the value of money fell and prices rose. But it was the prices of real, tangible assets which benefited the most during inflation, posting returns far in excess of conventional investments like stocks and bonds.
The 1970s Boom in Real Assets |
(Performance of various investments, June 1970 – June 1980,
compound annual rates of return) |
| |
| |
Return (%) |
Rank |
Oil |
34.7 |
1 |
Gold |
31.6 |
2 |
U.S. Coins |
27.7 |
3 |
Silver |
23.7 |
4 |
Stamps |
21.8 |
5 |
Chinese Ceramics |
21.6 |
6 |
Diamonds |
15.3 |
7 |
U.S. Farmland |
14.0 |
8 |
Old Masters |
13.1 |
9 |
Housing |
10.2 |
10 |
Consumer Price Index |
7.7 |
11 |
Treasury Bills |
7.7 |
12 |
Foreign Exchange |
7.3 |
13 |
Bonds |
6.6 |
14 |
Stocks |
6.1 |
15 |
Source: Salomon Inc. |
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