October 9, 2025
By Peter Bower
When the Bull started his investing career in the late 1970s, gold was trading around $400 per ounce. It recently traded for over $4000 per ounce. This is a tenfold increase! Over 46 years, this is an annual return of around 8%. Compare this to the S&P 5000. It was trading around 100. It is now over 6700. That annual return is approximately 12.3 % and with dividends, the return rises to over 18%.
Gold has made a spectacular move lately, but putting that move into context, the long-term results pale next to those of stocks. Why is this? Stocks represent ownership in companies that grow in value because of their activities. Gold is static, never changing. It mostly reacts to long-term trends in inflation. Therefore, it really reflects the loss in purchasing power of the U.S. dollar and not inherent growth in value.
Certainly, there are many reasons to own gold. It can be a stable asset during times of financial stress. However, it is not a great means to increase wealth. Stocks do a much better job. The Bull thought you might like to know this. Stay steady my friends.
-The Lonely Bull
