(Visual showing stacks of coins vs. notes — Gold 60%, S&P 500 80%)
Credit: Dimensional Fund Advisors
Past performance is not a guarantee of future results.
These figures tell an important story: gold is not immune to volatility. It can decline sharply, sometimes when investors are seeking safety the most.
Purpose Over Perception
At Wells Gibson, we believe investment decisions should be rooted in evidence, not emotion. While gold may appear to offer stability, it is not a substitute for a well-constructed, diversified investment portfolio.
“Purposeful Wealth means focusing on what you can control — building a plan that supports the life you want to live, regardless of short-term market noise or headlines.”
Purposeful wealth is about more than reacting to market headlines, it’s about having a long-term plan aligned with your values and life goals. Gold may have a role in a portfolio, but it is not the answer to every question of risk or resilience.
If you’re questioning the role of gold or any asset in your financial plan, we invite you to talk with us. Whether you’re looking to review your investment approach or want a second opinion, we’re here to help.
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Why Reputation Doesn’t Always Match Reality in Investing
Not since the release of the third Austin Powers movie have, we heard so much buzz about gold. With returns up 25% year-to-date as of April 30, it’s easy to see why it’s back in favour. Many investors view gold as a “safe haven”—an asset that protects portfolios during uncertain times.
But does gold live up to that label?
The Historical Reality of Gold
Despite its allure, gold has been far from consistent. Since 1970, gold has delivered positive calendar-year returns just 60% of the time. By contrast, the S&P 500 Index—a broad benchmark of US equities—has been positive in 80% of those years.
Exhibit 1: Frequency of Positive Calendar-Year Returns, 1970–2024
