How a 40% gold portfolio fared in the 1970s inflation decade
40% gold tilt — 40% gold · 40% equities · 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) | +114.6% |
|---|---|
| Total return (nominal) | +341.6% |
| CAGR (real) | +7.9% |
| Max drawdown (real) | −27.4% |
| Recovery | 3.1 years |
| Purchasing-power ratio | 2.15× |
| Ulcer index | 13.9 |
| Worst calendar year | 1975: +1.4% |
| Physical costs paid | $2,021 |
| Liquidation value | $43,564 |
A $10,000 stake in a 40% gold portfolio (40% gold · 40% equities · 20% cash, rebalanced quarterly, physical costs on coins applied) entering the 1970s inflation decade would have ended the window worth $21,456 in real, CPI-deflated terms — a real return of +114.6%. Along the way it fell at most 27.4% from its peak (3.1 years), with an ulcer index of 13.9. The same stake in equities alone returned −40.4% real — this allocation beat it by 154.9 percentage points of purchasing power. Physical ownership — dealer spread, storage, insurance — cost $2,021 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