Short and Sweet
Gold in the Age of Inflation
The star investment of the fifty-two year era and the most reliable store of value

There has been considerable, and some would say tedious, discussion on the subject of inflation over the past several months. The markets await more of it. Investors and consumers worry about more of it. The Fed thinks it is transitory. Others believe it will persist. That said, the current discussion ignores an established historical reality: We already live and have lived with it for a very long time. The Age of Inflation began in August of 1971 when the United States disengaged the dollar from gold and ushered in the fiat money era. Thereafter, the inflationary process has progressively eaten away at our wealth and the purchasing power of our money. 

To mark the occasion of the fiat money system’s 52nd anniversary, we offer an instructive chart for those contemplating adding gold to their portfolios. It is a myth-buster showing that gold has decisively outperformed stocks during the fiat money era. Many will be surprised to learn that gold is up almost 4,800% since 1971, while stocks have played second fiddle at 3,633%. At the same time, consensus has it that cyclically, stocks are closer to a top than a bottom, and gold is closer to a bottom than a top.

Gold and stocks price performance
(In percent, 1971-2021)
Overlay chart shoiwng percentage growth in gold and stocks since 1971
Chart courtesy of • • • Click to enlarge


Celebrate the 52nd anniversary of the fiat money system with a gold purchase.


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