Stocks vs Gold and Silver; Which was the best investment in the past 30, 50, 80, or 100 years?

These charts compare the performance of the S&P 500, the Dow JonesGold, and Silver.

The Dow Jones is a stock index that includes 30 large publicly traded companies based in the United States. It is one of the oldest and most-watched indices in the world.

The S&P 500 consists of 500 large US companies, it is capitalization-weighted, and it captures approximately 80% of available market capitalization. For these reasons, it is more representative of the US stock market than the Dow Jones.

Both versions of these indices are price indices in contrast to total return indices. Therefore, they do not include dividends.

Including dividends leads to a very different picture, which is demonstrated in the charts below:

10 Year Comparison

10 Year Chart

30 Year Comparison

30 Year Chart

50 Year Comparison

50 Year Chart

80 Year Comparison

80 Year Chart

100 Year Comparison

100 Year Chart

Gold and Silver are not an inflation hedge

As for Gold and Silver, they are often seen as an inflation hedge. However, the data challenges this opinion.  That view stems almost entirely from the very fact that gold used to be money, which could not be printed, and due to the experience of the inflationary 70s when the monetary system changed and the price of gold floated freely.

However, we live now in a completely different monetary system, which essentially explains why Gold and Silver are rather poor short-term inflation hedges. Given the opportunity costs, investors should expect only significant and lasting inflation to drive the prices up. In other words, Gold & Silver may serve as an inflation hedge only when there is relatively high inflation,.

Gold and Silver are a hedge against the Government.

The only time gold has rallied significantly is when the CONFIDENCE in government declines.

That was the case during the post-1976 era for people who saw inflation as running away. That was because of OPEC creating STAGFLATION meaning it was cost-push inflation that eventually converted to demand-push inflation by mid-1979.

I understand that all of these gold-bug analysts have been preaching hyperinflation for decades. The whole Quantitative Easing (QE) was supposed to create $10,000 gold years ago. Here, after 15 years of QE, gold still remains trapped in consolidation overall. Only recently have we seen a bump due do the effects of the attempted move to the Great Reset.

Stocks vs Gold and Silver?

Stocks as a whole, specifically the S&P 500 index, performs much better than Gold or Silver.

More importantly, you will be better diversified and can perform substantially better than Buy & Hold.

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