Precious Metals vs Stocks: Investment Return Estimator
Simply select a start year within the past 25 years and a lump-sum investment amount.
The calculator will estimate the current+ value of your chosen lump sum investment, across a variety of common precious metal mixes and contrast their values with popular blue-chip++ stocks.
Est. Current Value
100% in Gold
$0
100% in Silver
$0
75:25 Gold/Silver
$0
50:50 Gold/Silver
$0
25:75 Gold/Silver
$0
S&P 500
$0
Dow Jones
$0
Enron
$0
Gold and Silver’s Best Use is for Diversification
Despite the Bullion.Directory team being 100% gold obsessed, we built this calculator to highlight gold’s main use as a diversifier. While the 25 year average annual return for gold and silver at 8.65% and 8.52% beats 7.67% for the S&P 500 and 6.93% for the Dow, we would never suggest going all-in on metals.
By playing with the above calculator, you will rapidly see your hypothetical investment value will vary considerably depending on when you entered the market.
Some years will see a 100%-focused gold investment beat stocks into the ground. Others will see metals and stocks seeing similar overall gains, whilst a few will have stocks take gold behind the proverbial woodshed.
Yet by owning a basket covering both metals AND stocks or similar investment vehicles, your overall portfolio will typically get the best of both worlds – and use gold’s proven hedging ability to save your skin (or indeed retirement account) if and when the stock market has it’s next inevitable correction.
And Enron? We added Enron into the calculator as a jokey yet serious note that even the best and most trustworthy stocks, in the best and most beloved ‘too-big-to-fail’ companies, can and regularly do go to zero.
Which again helps illustrate gold’s use as a form of insurance. Gold’s intrinsic value and global desirability mean it will never ‘do’ an Enron.
This calculator does not offer personalized financial advice and does not take into account your individual circumstances, financial situation, or specific investment objectives. Any decisions made based on the output of this calculator are taken at your own risk. Bullion.Directory is not responsible for any financial losses or gains incurred as a result of using this tool. We strongly recommend consulting with a qualified financial advisor before making any investment decisions. A professional can provide personalized advice and a comprehensive investment strategy that aligns with your goals and risk tolerance.
++ The selection of the S&P 500 and Dow Jones indexes in this calculator is based on their wide recognition and use as benchmarks in the financial industry. They are utilized here purely to demonstrate potential market performance over time and are not intended as investment suggestions or endorsements.
The inclusion of the Enron stock is intended to serve as a historical example of the risks inherent in investing in individual stocks. This highlights that stocks can, and sometimes do, lose their entire value, underlining the importance of due diligence and the need for investors to be aware of the risks associated with buying paper assets.
