Quote:
Originally Posted by opendoor
After inflation. The actual price went up about 14x.
And you really can't compare gold standard era prices to post Bretton Woods system prices because under the gold standard the price was set by the government and static, increasing only twice in nearly 140 years between 1833 and 1971. Since the end of Bretton Woods in the early '70s, gold has increased in price by about 57x for an annualized return of about 8%. Not as good as the stock market (which averaged about 10% CAGR in that span), but still a pretty good return all things considered.
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Picking 1970 is convenient though as gold went up 5x between 1970 and 1974, and 9x between 1970-80 .
Heck gold hit a high of $843 in 1980!! The new high is $2100 nearly 45 years later haha .
Gold stayed between $200-$300 for 20 years in the 80 and 90s before breaking out in 2002 . It has been a 7x increase over the 20 years since then
If you start from the early 80s the return on gold is bad in the last 40 years