Gold Sells Off Yet Is Still Out Performing All Other Commodities- Especially Real Estate

The chart above shows the S&P TSX Real Estate, Gold, Energy and Financial Services Indices as well as the Bank of Canada Commodities Index (CRB) all valued in CA$. In May 2012 the energy sector continued to sell off keeping a lid on the CRB despite the strong US$. Gold also continued its correction while real estate was flat and financials slumped. With a subdued CPI the “real” price of gold trend is rising. Gold is out performing all other commodities and especially real estate. Gold is very liquid while Real Estate can be a “slow” asset and become unsellable (See history notes here and here). Check your return on investment with this Evaluator; if buyers suddenly vanish you might have to look for tenants and then your hope for capital gains becomes a job of managing a Return on Investment, if there is one.