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Gold underperforming stock market

Mining.com is out with analysis on the price of gold vs the stock market over the past 50 years. It's important to remember statistics can often be manipulated based upon which time horizon one chooses.


"There are lies, damned lies, and statistics" - Former British Prime Minister Benjamin D'Israeli


In this case, 50 years is a good time horizon because it goes back to 1971 when the US officially left all remnants of the gold standard, and gold began to freely trade. From 1945 to 1971 the gold price was fixed at $35/oz, established at the Bretton Woods conference of Nations at the end WW2.


Back to the article from Mining.com...


"Gold underperformance relative to the S&P 500 Index is striking, and even at its record high was a bargain on a historical basis. Today, you need just over 2.3 ounces to buy the market. The ratio is now back to where it was in August 2018 when an ounce of gold could be picked up for $1,200."


Interestingly, as we've mentioned on Jewelry.News before, cryptocurrencies shot up anywhere from 5X's to 50X's fold since gold peaked in August 2020.


You can read the full Mining.com article here

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