Historically, gold typically underperforms both the stock market and real estate over long periods, acting more as a hedge against inflation rather than a high-growth asset. Over a one-year horizon, gold's performance is highly volatile, often lagging behind the ~10% average annual return of the S&P 500 and the 4%-8% steady gains of real estate.
One-Year Comparison (General Trends)
Stock Market (S&P 500): Typically targets ~10% average annual returns (including dividends), with higher volatility. Can be sold quickly, so its more liquid than real estate.
Real Estate: Generally offers 4%-8% annual appreciation, often with less volatility than stocks but lower liquidity. Typically after you receive an offer on your property, it takes at least 30 days to sell.
Gold: Performance is highly unpredictable year-to-year. It often serves as a safe haven during crises, but its long-term, inflation-adjusted return is generally lower than stocks or real estate. Can we sold quickly if you know what you are doing, so its more liquid than real estate. Gold frequently holds steady or rises in price when the stock market.
Key Takeaways
Long-Term Performance: Over 30 years, stocks averaged ~10.3%, real estate ~8.8%, and gold ~7.4%.
Short-Term Risk: Gold can experience sharp, short-term appreciation during economic uncertainty, but it does not generate income (dividends or rent), making its total return potential over a single year often lower than productive assets.
Leverage in Real Estate: While raw real estate appreciates slowly, investors often use leverage (mortgages) to magnify gains, making the return on equity much higher than gold.
What is a Gold IRA
A Gold and Silver IRA is a self-directed retirement account designed to hold physical precious metals, acting as a hedge against inflation and economic instability. While providing portfolio diversification and potential high returns—particularly from silver’s industrial demand—these IRAs are constrained by higher fees, storage requirements, and zero income generation.
Gold
popular precious metal to invest in.
Durable - has many industrial uses
Used to make jewelry
Options
Gold Coins - selling gold coins can be a relatively simple process (if you know what you're doing)
Silver
cheaper than gold
May be more sensitive to changes in economy and more volatile
Forbes Gold IRAS -
Priority Gold - #1 on Forbes list, backed by Rich Dad's Robert Kiyosaki
Augusta Precious Metals