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Gold's New Role Beyond Crisis Hedging
Market Analysis:
Analysis: Gold's New Role Beyond Crisis Hedging
In a reflection of long-term price performance, gold has quietly outpaced the S&P 500 over the past 20 years. This inversion of conventional financial wisdom, where static metal has exceeded the returns of equity-based enterprise, is striking. According to DataTrek, gold’s price return stands at +616%, while the S&P 500 delivered +421% over the same period.
This outcome challenges the embedded assumption that equities, as vehicles of productivity and innovation, should outperform inert stores of value.
The past 20 years can be broken into 3 performance eras.
Between 2005 and 2014, a crisis era.
From 2015 to 2019 could be called a goldilocks era for stocks
The Post-2020 era
Post 2020 is most interesting in that it represents a break from historical patterns. While gold has traditionally excelled during volatility, it is now showing strength even when equities are stable. central bank demand is the manifestation of old, gold functioning both as a hedge and as an alternative reserve asset in a shifting global financial order.
Full analysis in Premium Post: Gold’s New Role Beyond Crisis Hedging
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