How a 20% gold portfolio fared in the 1987 crash
20% gold tilt: 60% equities · 20% gold · 20% cash · quarterly rebalance · physical costs on (coins) · window 1987-08-25 to 1989-07-26 · computed 2026-07-13 with the same engine the app runs.
Solid: this portfolio, real (CPI-deflated) value of $10,000. Dashed: the all-equity baseline.
| Total return (real) | −8.6% |
|---|---|
| Total return (nominal) | −0.4% |
| CAGR (real) | −4.6% |
| Max drawdown (real) | −19.8% |
| Recovery | not recovered in window |
| Purchasing-power ratio | 0.91× |
| Ulcer index | 14.0 |
| Worst calendar year | 1988: +5.2% |
| Physical costs paid | $172 |
| Liquidation value | $9,900 |
A $10,000 stake in a 20% gold portfolio (60% equities · 20% gold · 20% cash, rebalanced quarterly, physical costs on coins applied) entering the 1987 crash would have ended the window worth $9,142 in real, CPI-deflated terms: a real return of −8.6%. Along the way it fell at most 19.8% from its peak (not recovered in window), with an ulcer index of 14.0. The same stake in equities alone returned −7.8% real. This allocation trailed it by 0.7 percentage points of purchasing power. Physical ownership (dealer spread, storage, insurance) cost $172 over the window.
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The link above prefills the allocation. Adjust weights, costs, and windows from there. Sources and formulas: methodology.
Educational estimates, not financial advice