How much is 1000 dollars worth of gold bought ten years ago now? Let's do the math.

Ten years ago, the average price of gold was $1158.86/ounce, now it is $2744.67/ounce — an increase of 136%, with an average annual return of 13.6%. By this calculation, your $1000 is now worth $2360.

Sounds good? But compare it to the stock market: the S&P 500 rose 174% during the same period, with an annualized return of 17.41%. Adding in dividends, stocks leave gold in the dust.

Interestingly, the volatility of gold is even fiercer than that of the stock market. In the 1970s, it had an annualized increase of 40%, but starting in the 1980s, it struggled, averaging only 4.4% annualized. In the 1990s, it even lost money.

Why do people still buy gold? Because it doesn't rely on making money to sustain itself – it just lies there. It's not a big deal when the economy is doing well, but in times of chaos, gold becomes a safe haven. It rose by 24.43% during the pandemic in 2020 and by 13.08% during inflation anxiety in 2023.

So gold is not meant to make big money, it's meant for preserving life. When the stock market crashes, gold might still be there. It is predicted that gold may rise by 10% in 2025, possibly approaching $3000 per ounce.