The Globe and Mail reports in its Wednesday edition that many Canadians think real estate is the country's best investment. Guest columnist Hanif Bayat writes, however, that when we strip away the leverage effect of mortgages, the numbers tell a different story. Since January, 2001, gold has been the best-performing asset with a cumulative annual growth rate of 10.3 per cent. By comparison, the Canadian S&P/TSX Composite Index returned 7.3 per cent annually while the U.S. S&P 500 index returned 8 per cent. Canadian real estate delivered between 6 per cent and 8.6 per cent, depending on rental income. As more money enters the economy, it tends to flow into assets, driving prices higher. Gold, in particular, acts as a store of value. While central banks have increased the money supply rapidly, the global supply of gold increases by only 1 per cent to 2 per cent annually through gold mining. This scarcity has helped gold maintain its value over time and outperform other asset classes. Ultimately, if the money supply keeps growing at a compound rate of around 7 per cent annually, asset prices are likely to follow a similar long-term trend -- while incomes, more closely tied to the consumer price index, may lag.