Gold is widely viewed as an inflation hedge because supply grows slowly (~3,000 t mined per year) while fiat currencies can be printed without limit.
Historical Performance
From 1971 (end of gold standard) to today, gold rose from $35/oz to over — today — far outpacing cumulative US CPI inflation of roughly 500–600%.
When Gold Underperforms
Gold can lag during periods of high real interest rates (1980s, parts of 2010s) because bonds offer competitive real yields. It tends to outperform when:
- Real rates turn negative
- Currency confidence falls
- Geopolitical or banking crises emerge
Compare today's spot with historical peaks on the highest gold price ever page or use our calculator.