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S&P500 Priced in Gold

pricedingold.com

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Re: S&P500 Priced in Gold

#3

Post by stephen_g »

xeckr wrote: post #2

Economic stagnation for over a decade? Aligns with the vibes, IMO.

Gold is just one of many commodities these days, mostly unconnected from most monetary systems for many decades. Treating it as the benchmark of value is really quite arbitrary, and I expect someone could compare the S&P to other random commodities and come up with completely different conclusions...

Re: S&P500 Priced in Gold

#4

Post by xeckr »

stephen_g wrote: post #3
xeckr wrote: post #2

Economic stagnation for over a decade? Aligns with the vibes, IMO.

Gold is just one of many commodities these days, mostly unconnected from most monetary systems for many decades. Treating it as the benchmark of value is really quite arbitrary, and I expect someone could compare the S&P to other random commodities and come up with completely different conclusions...

I'd definitely be curious to see the S&P valued in different commodities over time. With that said, gold certainly feels like a special indicator given its history as a universally recognized store of value.

Re: S&P500 Priced in Gold

#8

Post by hnburnsy »

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

Re: S&P500 Priced in Gold

#9

Post by FreeTrade »

hnburnsy wrote: post #8

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…

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