Even at $4,000 an Ounce, Gold Is Still a Terrible Investment
I’ve been in this business for over three decades, and every few years gold comes back into the spotlight. Prices hit new highs, headlines get louder, and people start asking me the same question they asked in the 90s, the early 2000s, 2011, and now again:
“Should I be buying gold?”
I get why the question comes up. Gold feels tangible. You can hold it, it shines, and historically it’s been tied to the idea of safety. But the truth is simpler than the hype:
Gold just doesn’t behave like an investment.
It doesn’t earn interest.
It doesn’t pay dividends.
It doesn’t build anything.
It doesn’t innovate - it’s not productive.
It sits there. And over a full market cycle, that matters a lot more than most people realize.
What the Numbers Actually Show
Let’s go back to 1980, the last time we saw gold mania reach this level. I remember clients asking the same questions back then that they’re asking now.
Here’s how things played out:
- Gold: $800/oz → about $4,000 today
- Inflation: up roughly 4×
- S&P 500: up more than 60×
If you had invested $800 in the S&P 500 back then and reinvested the dividends, you’d be sitting at roughly $85,000 today.
That same $800 in gold? About $4,100.
Those aren’t minor differences. They’re life-changing.
Why This Keeps Coming Back
Whenever the world feels uncertain, people tend to gravitate toward what sounds stable and safe. Gold has a rich history, and that history lends it emotional significance. I understand that.
But the markets encompass and reward human ingenuity.
The appeal of gold isn’t financial. It’s psychological.
What I Tell Clients Today
If someone wants a small portion of gold as a hedge, that’s fine. Three to five percent, max, depending on the plan. But building long-term wealth through gold? In my experience, it doesn’t work.
What does work is ownership in great businesses in the USA and around the world that continue to make more money year after year and thus continue to pay greater dividends, which allows your income to increase over time to cover the cost of living increases over your lifetime.
A Note for Investors
Located in Denver? We work with many families, locally and nationally, who are trying to strike a balance between caution and growth, especially during uncertain times. That balance matters.
Your financial plan should reflect your goals, your tax situation, and your timeline. And it should be grounded in strategies that have stood the test of time, not the latest headline.
Gold has a role.
But it’s not the role people think it is.
Final Thought
Gold shines. It’s beautiful. It’s fascinating. But beauty doesn’t compound.
If your priority is to build real, lasting wealth, rather than chasing headlines or reacting to fear, focus on assets that grow, produce, innovate, and reward patience.
That’s what the most successful investors do.
Ready to Talk Through Your Strategy?
If you’re wondering how gold, or anything else that’s on your mind, fits into your bigger financial picture, I’d be happy to help you look at your bigger picture.
You can schedule a complimentary consultation here:
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Let’s ensure your goals are built on plans and solutions that actually move you forward.