Apple has outshone Gold ETF over last five years

Gold is hitting new highs and many investors may be looking to add the metal to their portfolio. ETFs make gold easy to buy, but investors should take a different approach with gold than with stocks when considering where it fits in their portfolio. In the past five years, Apple Inc. is up more than 600%, well ahead of SPDR Gold Shares’ (GLD) nearly 200% run. The past five years have seen a string of successful new products from Apple (AAPL), while inflation and financial crisis have lifted gold. Apple’s success shows that at the end of the day, creative minds are a better bet than the yellow metal. For many blue chip companies, however, the creativity and innovation hasn’t been nearly enough.Don Dion, TheStreet, May 13, 2010.

ETFDailyNews has put together some chart details comparing Apple Inc. (AAPL) and the SPDR Gold ETF (GLD), including:

More in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]


  1. While I have invested in Apple over the last 5 years, I would point out that gold and Apple are HIGHLY UNCORRELATED, which is extremely good for smoothing out the bumps in a portfolio.

  2. For many blue chip companies, however, the creativity and innovation hasn’t been nearly enough.

    Creativity and innovation is not a guarantee for success, even if your product is solid gold.

    The value of a 400-Troy-ounce gold brick will always rise and fall like the tide, however, finely-crafted, hand-made jewelry made from the same brick would be worth much, much more. And, that same brick mixed with copper or silver to produce yellow and white gold, respectively, would yield an even greater value.

    So, which would you rather have, a brick of gold, or its weight in fine jewelry?

    Apple abstracts “jewelry” from solid-gold ideas that people wear with pride.

  3. I sold my investment in two gold-based mutual funds when gold reached about $750/ounce. I had that investments since way before gold became hot, so it was definitely time. Normally, I would have been upset that I sold too soon, except I used the proceeds to buy more AAPL.

    @ Anonymous

    Not “UNCORRELATED.” More like reverse correlation.

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