What can you get for a hundred quid? Not much ..maybe a tank of petrol and a few bags of groceries. If we go back to 1952, the year of the Queen’s Coronation, then that £100 would have gone a lot, lot further. What would the best investment over a 60 year period be ?
An average house 60 years ago would have set you back £1,891, according to the Nationwide. Today it would be worth £164,134 – a very handsome return on your initial investment. And that got me thinking as to just how much you might have made by investing £100 back in 1952 – and would we be seeing diamond returns in the jubilee year?
Property has been a very shrewd investment over six decades. But how does this compare with other investments.
In reckoning the returns from shares and government bonds, I leaned heavily on an impressive statistical report produced called the Equity Gilt Study. What it revealed was on the face of it quite stunning – that a £100 investment in shares would have returned just under £108,000.
A recent report by called the Equity Gilt Study revealed that an initial investment of £100 in Sharers 60 years ago would have returned just under £108,000.
Gilts and Bank Accounts
£100 invested in gilts 60 years ago would have returned £6,850 today. While the same £100 invested in a Building Society would be worth around £6,000 today.
Forgetting bonds and shares, we all know gold has enjoyed a decent run of late. But what if you had spent £100 six decades ago? Well, it would have bought you just over eight ounces of the yellow metal worth £8,167 today. This is based on an historic bullion price of $34.60, or £12.36 at 1952 exchange rates. So it was a good investment, but definitely not the best.
So the best investment of the 60 year period would be shares be a mile…