What if you invested monthly in a gold ETF (GLD) for 5 years?
Over the past 5 years, gold moved to a different rhythm than stocks as inflation, rates, and a strong dollar pulled in competing directions. In such a short window, entry timing and the path along the way drive most of the outcome.
Investment conditions
Asset · Gold ETF (GLD)
Method · Recurring monthly investment
Period · 2021-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-23.4%
Largest drop from peak
Longest loss period
5months
Months in loss: 8
Recovery period
0months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $13,556 → Final value $23,523 (+73.5%), Maximum drawdown (MDD) -23.4%
Why this period and asset
July 2021 sat just before inflation accelerated after the pandemic. Gold is often described as an inflation hedge, yet in 2022 sharp rate hikes and dollar strength actually held its price down. Later, central-bank gold buying, geopolitical uncertainty, and shifting real yields combined to produce notably strong stretches. In short, these 5 years contain regimes that contradict the simple notion that rising prices always lift gold.
Interpreting the result
Over a span as short as 5 years, when you started and the volatility in between matter far more than compounding. Because gold pays no interest or dividend, the flat stretches required patience to sit through the maximum drawdown and the time underwater. This window still held a meaningful drawdown from its high and a stretch below invested cost, followed by a recovery. Buying a fixed amount each month accumulated more units during the pressured stretches, so those purchases became the springboard for the rebound. Still, a single 5-year result says little about gold's long-run character.
Caveats & limits
This is a simplified simulation that ignores taxes, trading fees, and currency effects. Past performance does not guarantee future returns and depends on one specific start date. Gold pays no dividend or interest, so holding it alone produces no cash flow. Figures follow USD-based prices; returns in another currency depend on exchange rates.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Does gold really hedge inflation?
Over long horizons it tends to rise with prices, but during rate-hike phases like part of this window it was actually held down. Its inflation protection varies with timing and horizon.
Is a gold ETF the same as physical gold?
GLD is designed to track the gold price but reflects storage and management costs, and you do not hold metal directly. This calculation is a simplified, price-based simulation.
Does dollar-cost averaging into gold make sense?
Gold is volatile, so a lump entry carries high timing risk. Buying monthly smooths your average cost, but it does not make the time-underwater disappear.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.