How much is 1000 dollars worth of gold bought ten years ago?

Data speaks: The average gold price 10 years ago was $1,158/ounce, now it's $2,744/ounce, an increase of 136%. In other words, your $1,000 can turn into $2,360.

Sounds good? Take a look at the S&P 500: it rose 174% during the same period, plus dividends. Gold is stable, but it doesn't generate cash flow; it just sits there.

Why are there still people hoarding gold? One word: insurance. When the stock market crashes, gold often rises against the trend. In 2020, during the pandemic, gold increased by 24.43%, and in 2023, during inflation anxiety, it rose by 13.08%.

Conclusion: Gold is not a wealth-building tool, but a risk-hedging tool. Having some in your portfolio means that when the day of economic collapse comes, at least this part will retain its value.