How a 20% gold portfolio fared in the 1970s inflation decade
20% gold tilt — 60% equities · 20% gold · 20% cash · quarterly rebalance · physical costs on (coins) · window 1970-01-02 to 1980-01-31 · computed 2026-07-06 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) | +23.8% |
|---|---|
| Total return (nominal) | +154.9% |
| CAGR (real) | +2.1% |
| Max drawdown (real) | −31.0% |
| Recovery | 5.3 years |
| Purchasing-power ratio | 1.24× |
| Ulcer index | 15.7 |
| Worst calendar year | 1974: −5.8% |
| Physical costs paid | $854 |
| Liquidation value | $25,308 |
A $10,000 stake in a 20% gold portfolio (60% equities · 20% gold · 20% cash, rebalanced quarterly, physical costs on coins applied) entering the 1970s inflation decade would have ended the window worth $12,383 in real, CPI-deflated terms — a real return of +23.8%. Along the way it fell at most 31.0% from its peak (5.3 years), with an ulcer index of 15.7. The same stake in equities alone returned −40.4% real — this allocation beat it by 64.2 percentage points of purchasing power. Physical ownership — dealer spread, storage, insurance — cost $854 over the window.
Open this portfolio in the stress-tester More scenarios
The link above prefills the allocation — adjust weights, costs, and windows from there. Sources and formulas: methodology.
Educational estimates — not financial advice