Gold & Silver vs Inflation

How do gold and silver perform as inflation hedges? Compare precious metals against the S&P 500 and CPI over different time periods.

Gold Spot Price Today

$5,361.90

Silver Spot Price Today

$91.20

50-Year CPI Increase

+461%

Gold and silver prices are live spot prices from market data. S&P 500 and CPI use latest available index values.

Asset1 Year5 Years10 Years20 Years50 Years
Gold+85%+198%+336%+866%+4.0K%
Silver+185%+238%+488%+860%+2.0K%
S&P 500+20%+56%+216%+373%+6.0K%
CPI (Inflation)+2%+22%+34%+61%+461%

Returns show nominal price change from the historical period to today. Gold and silver returns use today's live spot price vs. the approximate price at the start of each period. S&P 500 returns are price-only (excluding dividends). CPI represents cumulative U.S. consumer price inflation. An asset that outperforms CPI has preserved purchasing power over that period.

Is Gold a Good Inflation Hedge?

Gold has historically preserved purchasing power over long periods. While it doesn't always keep pace with inflation in the short term, over 20+ year periods gold has consistently outpaced CPI. Its role as a hedge is strongest during periods of high or accelerating inflation and currency debasement.

What About Silver?

Silver is more volatile than gold but has higher upside potential. As both a monetary metal and an industrial commodity, silver benefits from both inflation hedging demand and industrial growth. The combination of structural supply deficits and monetary demand makes silver a compelling long-term inflation hedge.

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