In November 2004, the first gold ETF (GLD) launched, now the world’s largest. Here’s a surprising fact: if you’d invested in GLD on that day instead of SPY (the largest S&P 500 ETF), your gold investment would be worth more today—even on a total return basis.
For years, the mantra has been “diversification is dead” and “just buy the S&P 500.” But the data tells a different story. Gold has quietly outperformed, yet most investors missed it. The three largest gold ETFs manage $162B in AUM, while the top three S&P 500 ETFs hold a staggering $1.7T. That’s a tenfold gap!
Does this mean you should rush into gold? Not so fast. With prices stretched, historical trends suggest more downside risk than upside in the near term (6-12 months). Gold’s no shiny new toy—it’s one of history’s oldest assets—but timing matters.
