Gold During Inflation

Understanding the historical relationship between gold prices and inflation periods

Explore how gold has performed as a hedge against inflation throughout history

Explore Data

Current Gold Price

$3,373.88

per ounce

Gold in 1980 Inflation

+2,328%

price increase

Gold vs S&P 500

Outperforms

during high inflation

Inflation Correlation

0.16

long-term correlation

Gold vs S&P 500 Performance

Compare the historical performance of gold against the S&P 500 index during different economic periods

Key Insights

  • Gold outperformed the S&P 500 during the 1970s inflation crisis
  • S&P 500 has better long-term returns during periods of economic stability
  • Gold serves as a hedge during market downturns and high inflation

Major Inflation Periods

Examine how gold performed during significant inflation periods throughout history

Gold vs Commodities

Compare gold's performance against other commodities during inflation periods

Gold

$3,373.88/oz

Baseline for comparison

Silver

$30.25/oz

1 oz gold = 111.5 oz silver

Crude Oil

$78.43/barrel

1 oz gold = 43.0 barrels

Corn

$4.58/bushel

1 oz gold = 736.2 bushels

Soybeans

$12.35/bushel

1 oz gold = 273.2 bushels

Gold Inflation Calculator

Calculate the value of goods based on changing gold prices

Equivalent Value

Loading...

Based on current gold-to-commodity ratio

Historical Comparison

Loading...

Change from 5 years ago

Inflation-Adjusted

Loading...

In today's dollars

Research & Insights

Explore our findings on gold's relationship with inflation

Gold as an Inflation Hedge

Gold has historically been viewed as a hedge against inflation and currency devaluation. Its physical nature and limited supply contribute to its stability as a long-term store of value.

During periods of high inflation, economic uncertainty, or geopolitical instability, gold tends to rise when confidence in other financial assets declines.

Historical Performance

Gold reached its inflation-adjusted peak of about $3,300 in today's dollars in January 1980 during high inflation. During the 1970s, gold soared 35% annually during 8.8% inflation.

However, from 1980-1984, gold dropped 10% yearly despite 6.5% inflation, showing that the relationship isn't always consistent.

Long-term Correlation

Over the long term, gold has a weak 0.16 correlation with inflation over 50 years. When inflation is greater than 3%, gold has returned 15% per year on average. When inflation is less than 3%, gold has returned just over 6% per year.