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Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that

by hnburnsy 10mo ago

Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that $10,000 invested in the S&P 500 at the start of 1950, with all dividends reinvested, would grow to approximately $3,836,763 by the end of 2025. Gold provided pure price appreciation (no yield or dividends). The multiplier is about 124.7× ($4,360 ÷ $35), or an annualized return of roughly 6.8% over 75 years. Ounces purchased in 1950: $10,000 ÷ $35/oz ≈ 285.71 ounces Current value: 285.71 oz × $4,360/oz ≈ $1,246,700

FreeTrade 10mo ago
And to be extra fair, we might want to subtract tax from those dividends before reinvestment.
- lostlogin 10mo ago
  Storing that gold most cost something too.
  - OutOfHere 10mo ago
    Storing gold costs nothing but a little space which isn't an issue given how compact it is.
    - deleted 10mo ago
      [deleted]
    - deleted 10mo ago
      [deleted]
    - bot403 10mo ago
      Oh good. I have a spare spot in my front yard to place it. Or maybe I'll just set it down on my dining room table. Wait...I might want something more secure than that. And if I have a lot of gold I might need to pay people to protect it. These storage costs are going up.
      - OutOfHere 10mo ago
        [flagged]
      - OutOfHere 10mo ago
        Ridiculous. Gold takes very little space. No individual really has a lot of it where storage becomes a constraint. It is obvious when someone has an agenda against it.
      - jjav 10mo ago
        You can fit millions of dollars worth of gold in a shoebox. Space is not an issue for any normal-person amount of wealth in gold.
icegreentea2 10mo ago
The point of this entire website isn't about gold vs equity as an investment, it's about gold vs fiat currency as a superior measurement of value. https://pricedingold.com/about/ https://pricedingold.com/about/
- ajross 10mo ago
  As a "measurement of value" they both suck. Gold is (extremely) volatile and currency inflates. Well, you can't do much to correct for the speculation noise in gold. But maybe we can attack from the other side. Maybe we could record prices for various representative products in a giant data set somewhere and calculate and record, I dunno, a "price index" that normalizes the prices to a value that is stable over time. I bet people would pay good money to look at a chart like that. Maybe we could find one.
  - rjbwork 10mo ago
    Unfortunately Goodhart's law has rendered official inflation measures borderline useless, as anyone who has been shopping for food for the last decade can tell you.
    - ajross 10mo ago
      Taking your example in good faith: Gold is four times as expensive today as it was at this time in 2015. Has food seen a 4x increase? No, right? So gold is volatile on a level way beyond inflation. QED. Are CPI measurements difficult? Sure. It takes a bunch of expert eggheads and a lot of shouting to come to consensus. Still better than trusting some kind of magical commodity market to tell you.
      - fdr 10mo ago
        You don't even need to trust CPI alone when looking in history, where things have evened out a bit: we have historical short-term bond yield data, even the yield curve: people bidding on short periods with the safest debtor expecting changes in nominal value. Not to suggest CPI is redundant, there's a reason why central bankers read it after all. For one, it's the most timely data they have. But it's impossible to nudge it year after year -- accumulative error -- without it become obviously decoupled from other data, including the long-term bond market data. It just so happens commodities are the wrong yardstick.
netbioserror 10mo ago
Great! We can start trading with each other in stock notes. I can't wait to buy my next round of groceries with a 0.1 SPY note! The ones I don't use will pay dividends!
- aaronblohowiak 10mo ago
  you're joking, but this is basically what it means to be retired...
- cykros 10mo ago
  If only there were a digital asset that had a fixed supply to prevent inflation that nobody could control who could spend what (to avoid unjust debanking) which was highly divisible so that you could spend large or small amounts, and because it's digital it could be spent very rapidly across long distances using the magic of the Internet. And if only it's governance model wasn't subject to the corruption seen in governments and private banks alike. I bet that thing would be a pretty useful monetary tool, even if it were attacked, as one might expect by all of the government and banks around the world who were trying to cling to the power they have by virtue of having captured the ability to print money and use it when it is most valuable, fresh off the press.
kazinator 10mo ago
> Gold provided pure price appreciation (no yield or dividends). Who's your alchemist? Get a better one.

FreeTrade 10mo ago

And to be extra fair, we might want to subtract tax from those dividends before reinvestment.

lostlogin 10mo ago
Storing that gold most cost something too.
- OutOfHere 10mo ago
  Storing gold costs nothing but a little space which isn't an issue given how compact it is.
  - deleted 10mo ago
    [deleted]
  - deleted 10mo ago
    [deleted]
  - bot403 10mo ago
    Oh good. I have a spare spot in my front yard to place it. Or maybe I'll just set it down on my dining room table. Wait...I might want something more secure than that. And if I have a lot of gold I might need to pay people to protect it. These storage costs are going up.
    - OutOfHere 10mo ago
      [flagged]
    - OutOfHere 10mo ago
      Ridiculous. Gold takes very little space. No individual really has a lot of it where storage becomes a constraint. It is obvious when someone has an agenda against it.
    - jjav 10mo ago
      You can fit millions of dollars worth of gold in a shoebox. Space is not an issue for any normal-person amount of wealth in gold.

icegreentea2 10mo ago

The point of this entire website isn't about gold vs equity as an investment, it's about gold vs fiat currency as a superior measurement of value. https://pricedingold.com/about/ https://pricedingold.com/about/

ajross 10mo ago
As a "measurement of value" they both suck. Gold is (extremely) volatile and currency inflates. Well, you can't do much to correct for the speculation noise in gold. But maybe we can attack from the other side. Maybe we could record prices for various representative products in a giant data set somewhere and calculate and record, I dunno, a "price index" that normalizes the prices to a value that is stable over time. I bet people would pay good money to look at a chart like that. Maybe we could find one.
- rjbwork 10mo ago
  Unfortunately Goodhart's law has rendered official inflation measures borderline useless, as anyone who has been shopping for food for the last decade can tell you.
  - ajross 10mo ago
    Taking your example in good faith: Gold is four times as expensive today as it was at this time in 2015. Has food seen a 4x increase? No, right? So gold is volatile on a level way beyond inflation. QED. Are CPI measurements difficult? Sure. It takes a bunch of expert eggheads and a lot of shouting to come to consensus. Still better than trusting some kind of magical commodity market to tell you.
    - fdr 10mo ago
      You don't even need to trust CPI alone when looking in history, where things have evened out a bit: we have historical short-term bond yield data, even the yield curve: people bidding on short periods with the safest debtor expecting changes in nominal value. Not to suggest CPI is redundant, there's a reason why central bankers read it after all. For one, it's the most timely data they have. But it's impossible to nudge it year after year -- accumulative error -- without it become obviously decoupled from other data, including the long-term bond market data. It just so happens commodities are the wrong yardstick.

netbioserror 10mo ago

Great! We can start trading with each other in stock notes. I can't wait to buy my next round of groceries with a 0.1 SPY note! The ones I don't use will pay dividends!

aaronblohowiak 10mo ago
you're joking, but this is basically what it means to be retired...
cykros 10mo ago
If only there were a digital asset that had a fixed supply to prevent inflation that nobody could control who could spend what (to avoid unjust debanking) which was highly divisible so that you could spend large or small amounts, and because it's digital it could be spent very rapidly across long distances using the magic of the Internet. And if only it's governance model wasn't subject to the corruption seen in governments and private banks alike. I bet that thing would be a pretty useful monetary tool, even if it were attacked, as one might expect by all of the government and banks around the world who were trying to cling to the power they have by virtue of having captured the ability to print money and use it when it is most valuable, fresh off the press.

kazinator 10mo ago

> Gold provided pure price appreciation (no yield or dividends). Who's your alchemist? Get a better one.