Gold vs S&P 500

It depends on the time period. Since 2000, gold has generally outperformed the S&P 500 in total return terms, largely because the starting point was a stock market peak and gold was near historic lows. Over longer periods (50+ years), stocks have typically delivered higher returns — but with significantly more volatility and drawdowns.

The S&P 500 is the benchmark for U.S. equity returns and the default investment for most portfolios. Comparing gold against it shows whether holding physical gold has added value versus simply buying an index fund. It also highlights how gold performs during stock market crises — often the exact moments when diversification matters most.

Yes. This calculator uses the S&P 500 Total Return Index, which assumes dividends are reinvested. This is the fairest comparison since gold doesn't pay dividends — using the price-only S&P 500 index would undercount stock returns and unfairly favor gold.

Most financial professionals recommend owning both. Stocks provide long-term growth and income, while gold provides inflation protection and crisis insurance. The key insight from the comparison is that gold tends to outperform during the exact periods when stocks struggle — making them complementary, not competing, assets.

CAGR stands for Compound Annual Growth Rate — it's the smoothed annual return that would get you from a start value to an end value over a given period. Unlike simple averages, CAGR accounts for compounding and volatility. A 7% CAGR means your investment doubled roughly every 10 years.

Gold was trading near USD 270/oz in 2000 after a 20-year bear market. Meanwhile, stocks entered the dot-com crash. The combination of gold's low starting point, rising demand from central banks, monetary expansion after 2008, and inflation fears post-2020 drove gold to all-time highs. Starting dates matter enormously in these comparisons.