If You Think You Know Gold, Think Again.

Gold’s Performance vs. the S&P and the Agg Since 2000 

Index returns are unmanaged and do not reflect the deduction of any fees or expenses.


Gold has outperformed both the S&P 500 and various fixed income assets since 2000. Yet investors often overlook gold as a long term portfolio strategy that may potentially generate returns during other market cycles. Why? Find out what potential portfolio benefits you may be missing.


Why Consider Gold?


Long Term Returns

Since August 15, 1971, gold has had a 7.65% compounded annual growth rate.1


Diversification

Gold has demonstrated a -0.01 and 0.07 monthly correlation to the S&P 500 Index and Bloomberg Barclays US Aggregated Bond Index, respectively, since the 1970s.2


Access Deep Liquidity

The average daily turnover of gold is over $139 billion, which is equivalent to $35 trillion per year.3


Portfolio Impact During Market Events

During the last 14 equity market downturns, gold has provided an average return of +6.3%, while the S&P 500 TR Index pulled back -21.46% on average.4


Largest and Most Liquid


SPDR Gold Shares® (GLD®) offers strategic, long-term investors relatively low entry and rebalancing costs, plus robust optionality.

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Footnotes

1 Bloomberg Financial, L.P., & State Street Global Advisors, date as of September 30, 2019.

2 Bloomberg Finance, L.P., & State Street Global Advisors; S&P 500 correlation is from 8/31/1971 to 09/30/2019 and Bloomberg Barclays US Aggregate Bond Index correlation is from 3/31/1976 to 09/30/2019 due to data availability. Source: Bloomberg Finance, L.P., State Street Global Advisors. The correlation coefficient measures the strength and direction of a linear relationship between two variables. It measures the degree to which the deviations of one variable from its mean are related to those of a different variable from its respective mean with 0 being uncorrelated and 1 being perfectly correlated.

3 Estimates based on clearing statistics published by the LBMA, LBMA-i and non-LBMA-i OTC (estimates represent daily averages is US$ billion for Q1’2019), COMEX, SHFE, SGE, LME precious, Dubai Gold & Commodities Exchange, ICE Futures, US Metals, Borsa Istanbul, Bursa Malaysia, Moscow Exchange, and Tokyo Commodity Exchange. Date as of 09/30/2019. Past performance is not a guarantee of future results.

4 Analysis of Gold’s Historical Performance in Market Downturns. Bloomberg Finance, L.P., State Street Global Advisors, as of September 30, 2019. Notes: 2008 Financial Crisis (06/05/08 – 03/09/09); Black Monday (08/25/87 – 12/04/87); 2002 Recession (03/19/02 – 07/23/02); Dot Com Bubble (09/29/00 – 04/04/01); Gulf War (07/16/90 – 10/11/90); LTCM & Asian Crisis (07/17/98 – 08/31/98);US Credit Downgrade (07/07/11 – 10/03/11); Subprime Meltdown (10/09/07 – 03/10/08); September 11th (08/24/01 – 09/21/01); Flash Crash (04/23/10 – 07/02/10); Trade War/Recession Fears (09/21/18 – 12/26/18); Iraq War (01/14/03 – 03/11/03); End of QE Era(11/03/15 – 02/11/16); Yuan Devaluation (07/20/15 – 08/25/15)Source: Bloomberg Financial L.P. and State Street Global Advisors, Date as of 10/8/2019. Figure represents assets for SPDR Gold Shares and SPDR Gold MiniShares, for which State Street Global Advisors Funds Distributors, LLC serves only as marketing agent.

Important Risk Information

Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent. Nothing on this web page constitutes investment advice and should not be relied upon as such. The value of units in the GLD ETF (the “Fund”) may fall or rise. Past performance of the Fund is not indicative of future performance. Distributions from the Fund are contingent on dividends paid on underlying investments of the Fund and are not guaranteed. Listing of the Fund on the HKEX/ SGX does not guarantee a liquid market for the units and the Fund may be delisted from the HKEX/ SGX. The Fund’s Prospectus is available from State Street Global Advisors or can be downloaded from http://www.spdrgoldshares.com/

The prospectus in respect of the Singapore offer of the shares in the Trust is available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSGA") (Co. Reg. No: 200002719D). Investors should read the prospectus of the Trust before deciding whether to purchase Shares. Shares in the Trust are not obligations of, deposits in, or guaranteed by, World Gold Trust Services, LLC, SSGA or any of their affiliates. The value of Shares and the income accruing to such Shares may fall or rise. You should consider whether the Trust is suitable for you. If in doubt, you may wish to seek advice from a financial adviser before making a commitment to purchase Shares. Investors have no right to request the Sponsor to redeem their Shares while the Shares are listed. It is intended that holders of Shares may only deal in their Shares through trading on the SGX-ST. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.

Past performance is not a guarantee of future results.

Diversification does not ensure a profit or guarantee against loss.

Investing in commodities entails significant risk and is not appropriate for all investors. 

Adtrax: 2885411.1.1.APAC.RTL Expiry: 31/01/2021