Thursday, July 1, 2010

Gold as a Percent of Equities / Fixed Income

Paul Kedrosky's Infectious Greed with the post Gold is Way Under-owned Compared to Other Times When the World Sucked:

Thought-provoking table from Cembalest at JP Morgan comparing gold’s capitalization as a percentage of bond and equity market capitalization during other periods of market nihilism/strife/awfulness/madness.
The table is recreated in chart form below to show the relative holdings (in percent) by market cap ($) between equities, fixed income, and gold globally in 1982 and at the end of 2009.

Interesting to note that along with gold being held at a much lower percent in market cap terms, but the level of debt outstanding relative to equities and gold is right about where it was in 1982.

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