Gold vs. Equities

Gold's dramatic historical under-performance with taking decades to remain at previous highs is very well documented. Also, gold companies never follow the actual bullion to the same extent as it is an extraordinarily high cost to mine. However, as is the case with anything (most recently the Mag 7 which have since imploded and been appropriately re-priced), once there is movement, there is attention. So, let me briefly comment.

Gold has ZERO long term meaningful use except as a hedge for inflation (and pretty jewelry). And let me clarify my tone, “alleged” hedge against inflation.

So, pulling some data going back to 1980 with Gold v. US equities as an inflation hedge.

Source: Factset, US Inflation Calculator · Copyright© 2008-2025 Coinnews Media Group LLC

Important to Note that the CPI is reported as of April 30th and the price of Gold and S&P 500 are as of June 5th, 2025. This ignores all dividend paid by S&P 500 – and gold pays zero.

Summary: Gold is a terrible inflation hedge and the most consistently effective inflation killer is? You got it, equities.