How much is the gold worth now that I bought for 1000 dollars 10 years ago? Here's a heartbreaking comparison.

Imagine this: if you had invested $1000 in gold in 2014, what would the situation be like now?

Data is hardcore: The average gold price back then was $1158.86/oz, now it is $2744.67/oz, an increase of 136%, with an average annual return of 13.6%. In other words, your $1000 has now turned into $2360. Sounds pretty good, right?

But here’s a painful truth — the S&P 500 rose 174% during the same period, with an annualized return of 17.41%, not counting dividends. In other words, buying gold is not as good as buying US stocks.

Gold has a strange temperament. The bull market in the 1970s (after gold decoupled from the dollar) saw annualized gains soar to 40.2%. However, after the 1980s, it flatlined, with an average annualized return of only 4.4% before 2023. For most of the 1990s, gold was still declining.

Why are there still people buying? Gold itself does not generate income, unlike stocks and real estate that can produce cash flow. But it has a unique skill - risk resistance.

In 2020, during the outbreak of the pandemic, gold surged by 24.43%; in 2023, during the inflation panic, gold rose by 13.08%. If the market collapses, gold tends to appreciate instead. This is why institutions consider gold as insurance.

Conclusion: Gold is not a tool for making money, it is an insurance policy. Don't expect it to outperform the stock market, but in times of market collapse, it is worth more than cash. Some predict that gold will rise by about 10% in 2025, potentially nearing $3000/ounce.

In simple terms, the rule of gold is: usually unremarkable, but saves your life at critical moments.