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There are better stores of concentrated value than gold, argues Jeff Gundlach. Gundlach, the bond guru behind DoubleLine Funds, says gem stones and art serve the same purpose as gold but are much more portable.Art specifically was a great asset to be invested in during the last few years, reports Patrick Mathurin of the Financial Times.
The Mei Moses has beaten the S&P 500 in six of the last 10 years, with an average annual return of 7.8 per cent compared with 2.7 per cent for the benchmark US index. The Mei Moses tracks the prices at which individual works of art sell over time using repeat sales data, in a methodology similar to the S&P Case-Shiller property index.
“Art prices are not correlated to sudden swings in stock markets but their prices tend to match changes in wealth creation and destruction. I’m not surprised by this growth as we are not seeing the wealth damage of 2008-2009,” said Michael Moses, creator of the index.