Golds 2022 YTD Performance Relative to Equities and Popular Cryptocurrencies

According to a June 30, 2022 article published by the Washington Post titled “Stocks slide, with Wall Street closing out its worst first half since 1970,” the authors note: “The stock market closed out its worst six-month stretch to start a year since 1970, as inflation-driven upheaval has spread across nearly every part of the economy. The S&P 500 index edged 0.9 percent lower Thursday to bring its 2022 losses to 20.6 percent. The tech-heavy Nasdaq, which fell 1.3 percent, has tumbled nearly 30 percent this year, while the Dow Jones industrial average’s 0.8 percent drop put its year-to-date decline near 15 percent.”

Cryptocurrencies have also struggled since the beginning of this year. Bitcoin has tumbled 58.21%, and Ethereum is down a whopping 72.13% through June 30, 2022.

In comparison, gold has increased slightly, gaining .13% during the same period of January 3, 2022, to June 30, 2022. This gain, although modest, marks a relatively exceptional performance when compared to the other asset categories mentioned above and shows, in real time, how gold can act as an uncorrelated safe-haven asset in times of political and economic uncertainly. Couple this performance with gold’s average returns of 11% over the past 50 years, and you can understand why so many experts recommend diversifying your personal investment portfolio by investing gold.

Sources:

Shaban, H. and Gregg, A. (2022 June 30) “Stocks slide, with Wall Street closing out its worst first half since 1970”. Retrieved from: https://www.washingtonpost.com/business/2022/06/30/stock-market-today-recession-inflation/