Let’s do the comparison. One dollar invested in the S&P 500 in January 1, 1978 would be worth $24.60 in Dec 31, 2008. Cite. Note that I picked an endpoint during one of the worst bear markets of the post-war era.
An oz of gold was worth about $170 on Jan 1, 1978 and $875 at the end of 2008, coming off of the worst post-war financial crisis when gold should be worth zillions. Dividing, $1 of gold bought in the beginning translates to $5.14 now.
5.14 << 24.60.
Hey, gold might be a terrific investment going forward. But it sure has been a dud in the past.
What do baseball cards, art and gold have in common? They’re really really cool
I would expect gold to have lower returns over the long run. Like art, people like to hold the shiny metal, while investing in x share in Big Corp is boring. So they have to pay a premium for it, translating into lower returns. Add in conspiracy fantasies and gold’s allure becomes overwhelming.