I hear advertisements for gold all the time. They always say it is beating the market and a great inflation hedge. How good is it? I think I'll take this opportunity to educate myself.
Here is what I found.
In 1980 gold was $850/oz. Gas was $1.25/gallon.
Today gold is $1645.24/oz. Gas is $3.50/gallon.
Gas has nearly tripled. Gold has doubled.
In 1980 the median home price was $76400.
Today a home costs is $155,000.
Looks like gold has held roughly even with housing.
In 1980 a stamp cost .15.
Today a stamp costs .45.
Looks like stamps have out paced gold.
In 1980 bread cost $1.19.
Today bread costs $2.50.
Looks like gold and bread are roughly even.
What is a 1980 dollar worth today? $3.57 (according to inflationdata.com)
How has the stock market done since 1980?
In January 1980 the DOW was at 824. Today it is at 13199. FYI: Before the recession it was at 10959 in 2006.
Bottomline: Gold has done a decent job of staying even with inflation since 1980. The stockmarket has handily outpaced it.
Thats great, Keim. What about a longer timeframe?
The DOW was 100 in 1906.
Gold was $18.90
Gold has increased less than 100 fold since then. The DOW has increased about 130 fold.
Bottomline: Over the last 100 years, a period of enormous upheaval, the Market beat gold hands down. Looks like the market outpaced gold in both short and intermediate terms. I can't find any data from biblical times to compare markets vs gold for longterm. I will concede that gold has proven a better investment for our progenitors than frankincense, myrrh and tulips. I'm willing to gamble we aren't experiencing any epochal events causing gold to seriously outpace the market in the remainder of my lifetime.
Here is what I found.
In 1980 gold was $850/oz. Gas was $1.25/gallon.
Today gold is $1645.24/oz. Gas is $3.50/gallon.
Gas has nearly tripled. Gold has doubled.
In 1980 the median home price was $76400.
Today a home costs is $155,000.
Looks like gold has held roughly even with housing.
In 1980 a stamp cost .15.
Today a stamp costs .45.
Looks like stamps have out paced gold.
In 1980 bread cost $1.19.
Today bread costs $2.50.
Looks like gold and bread are roughly even.
What is a 1980 dollar worth today? $3.57 (according to inflationdata.com)
How has the stock market done since 1980?
In January 1980 the DOW was at 824. Today it is at 13199. FYI: Before the recession it was at 10959 in 2006.
Bottomline: Gold has done a decent job of staying even with inflation since 1980. The stockmarket has handily outpaced it.
Thats great, Keim. What about a longer timeframe?
The DOW was 100 in 1906.
Gold was $18.90
Gold has increased less than 100 fold since then. The DOW has increased about 130 fold.
Bottomline: Over the last 100 years, a period of enormous upheaval, the Market beat gold hands down. Looks like the market outpaced gold in both short and intermediate terms. I can't find any data from biblical times to compare markets vs gold for longterm. I will concede that gold has proven a better investment for our progenitors than frankincense, myrrh and tulips. I'm willing to gamble we aren't experiencing any epochal events causing gold to seriously outpace the market in the remainder of my lifetime.