Total Returns: Gold vs S&P 500 over last 20 years

GoldmattersGoldmatters Posts: 4,015 Admin

It is interesting to see how long typically performs over long periods of time, especially when measured in decades


  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭
    I love this, lack of knowledge on gold returns, which averages around 7% is why CFA communities tend to just discard gold.
  • nienie Posts: 129 Bronze ✭✭✭
    Interesting. Thank you.
  • GoldmattersGoldmatters Posts: 4,015 Admin
  • UvasUvas Posts: 680 Silver ✭✭✭✭
    edited February 28
    Yea, this is a pretty deceiving chart. Where the S+P really shines is that there are dividends involved with each share you own. If you reinvested your dividends in your S+P index fund, the difference is staggering. Gold gets blown away. Its not even in the same ballpark. Take a look at this page:
    The first chart is similar because it doesn't include dividends. Scroll down to the second chart and you see how the returns of the S+P destroys gold when including dividends. You can edit the time on the chart to 10, 30,50, 80, 100 years. Set it to 30 years for a fairer comparison to the OP's chart.
  • RocketDogRocketDog Posts: 759 Silver ✭✭✭✭
    I don't know @UVAS, I think it would be more accurate to say "IF" there are dividends involved with each share you own. Most US stocks do not pay dividends anymore. Further, in the chart you posted the stock market only reached up to the gold level in the past few years when the stock markets have arguably been in a bubble. I guess only time will tell.
  • GoldmattersGoldmatters Posts: 4,015 Admin
    edited March 10
    @RocketDog Yep. Choosing to reinvest dividends would have been an independent decision each investor would have had to make. I am fairly confident that not 100% of investors in that scenario chose to do that, therefore it is still accurate to say that during that time period, using strictly the price performance, the chart is correct.

    If we are going to open it up to “ifs” we could use that to golds advantage as well, thus again rendering the chart useless...

    I just thought the chart was interesting enough to share with the community.
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