Summary
As far back as 560 B.C. gold was used as a currency to simplify trade.
Gold was used in many currencies thereafter and has been a symbol of wealth throughout Africa, Asia, Europe, and the Americas.
US dollars were backed by (and exchangeable for) gold until 1971.
In modern times, the value of gold is contested.
Technology has rendered it essentially obsolete as a currency.
For example, Bitcoin is easier to divide,
transfer, store and set the total supply.
However, gold is still important to central banks.
They presently hold about 20% of mined gold, and many still acquire it
(China added about 1.8 billion USD worth in December 2022 alone).
Also, there is demand for gold in jewelry and electronics.
Some people argue for holding gold as a long-term store of wealth.
While most currencies inflate and fail over time, gold has roughly retained its purchasing power over thousands of years.
Others argue assets like stocks and bonds are superior since they increase purchasing power over time.
Gold does not pay dividends, grow, or produce anything of value.
For more information about gold investing, see
"The People’s Gold."
Historical mean annual return, 1960-present: 8.1%
Min / max annual return, 1960-present: -32.8% / 120.6%
Last 25 years mean annual return: 9.1%
Last 10 years mean annual return: 6.1%
Last 5 years mean annual return: 11.1%
Table of total yearly returns of gold
| Year | Return [%] |
|---|
| 2023 | 13.14 |
| 2022 | 2.08 |
| 2021 | -3.73 |
| 2020 | 25.75 |
| 2019 | 18.28 |
| 2018 | -1.06 |
| 2017 | 9.54 |
| 2016 | 8.62 |
| 2015 | -11.61 |
| 2014 | -0.44 |
| 2013 | -27.61 |
| 2012 | 8.69 |
| 2011 | 7.80 |
| 2010 | 30.60 |
| 2009 | 25.04 |
| 2008 | 3.97 |
| 2007 | 31.59 |
| 2006 | 23.92 |
| 2005 | 17.77 |
| 2004 | 4.40 |
| 2003 | 21.74 |
| 2002 | 23.96 |
| 2001 | 1.41 |
| 2000 | -6.06 |
| 1999 | 0.54 |
| 1998 | 0.57 |
| 1997 | -22.21 |
| 1996 | -4.65 |
| 1995 | 0.98 |
| 1994 | -2.17 |
| 1993 | 17.64 |
| 1992 | -5.71 |
| 1991 | -8.56 |
| 1990 | -3.69 |
| 1989 | -2.23 |
| 1988 | -15.69 |
| 1987 | 24.46 |
| 1986 | 19.54 |
| 1985 | 6.17 |
| 1984 | -18.95 |
| 1983 | -14.99 |
| 1982 | 11.75 |
| 1981 | -32.76 |
| 1980 | 29.61 |
| 1979 | 120.57 |
| 1978 | 29.17 |
| 1977 | 20.43 |
| 1976 | -3.96 |
| 1975 | -24.20 |
| 1974 | 72.59 |
| 1973 | 66.79 |
| 1972 | 43.14 |
| 1971 | 14.65 |
| 1970 | -5.12 |
| 1969 | -5.75 |
| 1968 | 22.54 |
| 1967 | 0.28 |
| 1966 | -0.28 |
| 1965 | 0.42 |
| 1964 | 0.28 |
| 1963 | -0.28 |
| 1962 | -0.42 |
| 1961 | -2.74 |
| 1960 | 3.55 |
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Click here for other historical returns.
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