🛡 How much would adding gold reduce your stock portfolio's crash risk?
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📈 Portfolio Growth
You're probably wondering if gold belongs in your portfolio. A 55-year study on r/Bogleheads shows that adding 20% gold to US stocks barely changes long-term returns. Both portfolios averaged roughly 11.3% yearly, but gold reduced the odds of a 50% drawdown from 26% to 6%.
This calculator projects your wealth under both strategies. It reveals the exact dollar drops you will have to endure during a historic market crash to achieve those returns.
📉 Crash Scenarios
The real test of an investment strategy is the worst-case scenario. From 1971 to 2026, a 100% stock portfolio suffered a worst fall of 50.3%. An 80/20 mix of stocks and gold cushioned that blow and limited the maximum drawdown to 39.3%.
The catch is the timeline. Between 1980 and 2000, gold fell 58% while stocks went up 22 times over. You have to be willing to rebalance through decades of underperformance to get this crash protection.
🔗 See Also
For further related reading, check out:
📊 Results
Stocks Value
80/20 Value
Stocks Max Drop
80/20 Max Drop
Action
Add Gold
Calculator updated by heyfinfam (v26.9.0) · View history
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