[simon says what]

The chart means nothing from February 1, 1934 until August 15, 1971, because gold was fixed at $35 an ounce.

So we should only measure since 1971 ? Here is a chart of Gold and the S&P 500 price level performance since 1971. Gold is doing 85% better.     :-)

Gold = Green     S&P 500 = Blue

[Toddsterpatriot]

Thanks Simon. With dividends, gold still loses :-)

What do you think, does gold have to revert to a ratio of 3 to 1 vs the DJIA?

[JasonC]

Sorry, that SP chart is price only. It was around 100 in 1971 and it is around 1250 now, corresponding to the +1200% or thereabouts on your graph. But the total return with dividends included is much higher. In fact, the Vanguard 500 Index Fund has been around since August of 1976, and has a cumulative total return since then of 2764%, off your chart - even leaving off the first 5 years.