Gold vs. The Dow
Which has performed better over the past forty-four years: gold or the Dow Jones Industrial Average? Check out the charts and compare.
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Updated January 4, 2017
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Updated May 6, 2016
May 2015 – May 2016 Gold vs the Dow Performance
The Dow Gold Ratio was at 13.778 to 1 on May 6, 2016.
Gold and the Dow have exchanged places a few times from May 2015 – May 2016, with gold pulling away from the Dow in February 2016
Gold vs. The Dow Over the Past Forty-Five Years
In 1933 President Roosevelt signed executive order 6102 that outlawed private ownership of gold by U.S. citizens. That order remained in effect until December 31, 1974. Since then gold has risen from $35 an ounce all the way to $1900 an ounce in 2011 ounce and back down to its current price of about $1170 an ounce. The Dow Jones Industrial Average (DJIA) has gone from 600 in 1974 to its current peak of around 19,900 today.
Gold is an asset that does nothing, yet over the past 45 years it has out performed the DJIA which represents much of the collective commercial efforts and innovations of man for the past few decades.
Here is a chart shows which years from 1970-2012 gold performed better than the DJIA and which years the DJIA out performed gold.(top) The chart also shows the Gold to Dow Ratio from 1970-2012 e.g. how many ounces of gold it took to buy the Dow. (bottom)
The charts will be updated from time to time and archived (see below).
If you are a Smaulgld subscriber (see right hand column for details on starting your free subscription), you may request an updated chart(s) sent to you via email.
You can compare pricing and shipping charges on American Gold Eagles coins of all sizes at these web sites:
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Gold vs. The Dow Charts
Gold vs The Dow 1970 – April 2014
Chart shows how many ounces of gold it takes to buy the DJIA from 1970-2012.
Gold vs. The Dow 1970 – November 2014
The gap between gold and the DJIA has widened since April.
Gold vs. the Dow 1970 – March 2015
Gold vs. the Dow since 1970
Gold Charts Courtesy of Nick Laird
Long Term Gold Performance
Click Chart to Enlarge
Gold’s Average Annual Yearly Percentage Price Changes 1970-2012.
Percentage of up years: 64%. Since 1970 gold has gone up 28 years over the past 44 years or 64% of the years.
Longest Gold Winning Streak: 12 years. Gold went up 12 years in a row from 2001-2012. It was down in 2013 and is up the first quarter of 2014.
Longest Gold Losing Streak: Five years. Gold went down five years in a row from 1988-1992.
Largest Annual Gold Gain: 139% (1979)
Largest Annual Gold Loss: 33% (1981)
Forty-Four Year Gold Performance: 3,614% Gold was about $35 an ounce in 1970 and is currently around $1300.
Gold has the longest winning streak among the DJIA and silver. (see also Silver vs. the Dow)
Long Term DJIA Performance
Click Chart to Enlarge
The DJIA Average Annual Yearly Percentage Price Changes 1970-2012.
Percentage of up years: 70%. Since 1970 the Dow Jones Industrial Average has gone up 31 of the last 44 years or 70% of the years.
Longest DJIA Winning Streak: Nine years. The DJIA went up nine years in a row from 1991-1999. It was up in 2013 and flat in the first quarter of 2014.
Longest DJIA Losing Streak: Three years. The DJIA went down three years in a row from 2000-2002.
Largest Annual DJIA Gain: 38% (1975)
Largest Annual DJIA Loss: 34% (2008)
Forty-four year performance: 2,650%* The DJIA was about 600 in 1970 and is currently around 16,500 today.
The DJIA has been the most consistent performer among gold and silver. (see also Silver vs. The Dow). It’s longest streak of negative returns is just three years in a row. The Dow, however, also has the lowest single year largest annual gain compared to gold and silver.
*does not include any reinvested dividends.