I can look at historical prices of stocks and pick highs and lows that would make millions. How is GINI different?
GINI is based on a set of rules that we developed when trying to understand when gold is (and is not) a good investment. To measure it’s performance, we imagined ourselves at January 1, 1975 (when gold again became legal to own). We then followed our GINI rules every day, knowing only what someone on that day would have known. As we moved forward through historical market data, GINI recommended trades between gold, stocks and bonds, and we followed them, using the buying and selling prices available to an average investor on those days. The GNII track record is simply the result of an imaginary, normal investor, following the GINI recommendations.