This is a followup to my earlier post. Even though the S&P 500 outperforms gold (since 1972), mixing 6% into one's equity allocation improves the overall performance in almost all areas.
|Metric|Years (1-1972-3/2025)|S&P 500 w/ 6% Gold|S&P 500|
|:-|:-|:-|:-|
||
|Average|53 3/12|10.92% +/- 15.57%|10.88% +/- 16.59%|
|Rolling 12-Month Average|628|12.09%|12.28%|
|Up Markets|502|17.99%|18.58%|
|Down Markets|126|\-11.41%|\-12.81%|
|Return to Risk Ratio||0.70|0.66|
|Return to Inflation Ratio||0.52|0.50|
|Sharpe Ratio||0.49|0.47|
|Sortino Ratio||0.68|0.66|
|Best 12 Months||59.51%|61.18%|
|Worst 12 Months||\-41.17%|\-43.32%|
Can we start agreeing that gold should be part of an overall well-allocated portfolio?