Glittering Gold

While gold prices are setting nominal price records at $2,000/oz, inflation adjusted, gold doesn’t shine. As recently as 2020 it was close to $2,400/oz, and in 2011 it was almost $2,500/oz. In 1980, gold traded at slightly more than $2,500/oz, its all-time inflation-adjusted peak. As far back as 1790, gold was worth $1,200/oz. Over very short holding periods gold can do very well, over long periods gold performs poorly.