But it has done rather poorly comparing to another asset class, which protects against inflation rather well, Equity REITS.
Let's see Total Returns for the NAREIT index vs Gold.
Annual Compounded from 1972 11.7% for Equity REITS vs 7.5% for Gold.
Does not seem like a big difference. That is only because you don't know the value of compounding!
But wait we have to make one small adjustment.
Stocks were freely traded in 1950's to 1970's whereas Gold had been held fixed to $35 for over 3 decades. In fact Gold went from $35-$200 in the first 5 years it was removed off the fixed price. This was catch up. Just like when an artificial peg is removed and the currency falls/appreciates rapidly.
So total return over 1975-2016 would remove this catch up period. Remember Gold went up 6 fold during 1970-1975 where Real interest rates were 1-2% below inflation. That kind of appreciation would never happen outside a catch up zone.
So my question is, Where the Fuck are the REIT Bugs? Why is there no one screaming that NAREIT will go up 4000% in the next 5 years? Where are the lunatics saying REITS are being pressured/manipulated by the central banks? Where is REIT-EAGLE.COM? Surely some fringe people must have developed who have gone bonkers with the love of this asset class. Where are they??!!
Specially today when REITS are a global asset class and take away country specific risk, surely someone must feel so passionately about them?