Gold vs CAC 40 GR
A metal that produces nothing against forty companies that do, dividends reinvested. It is the frankest comparison you can draw between precautionary saving and a stake in the economy — provided you remember that gold trades in dollars, and that the exchange rate is part of the result.
Over the period both series share, CAC 40 GR comes out ahead at +7.0% a year.
| Asset | Total return | Annualised | Volatility | Largest drawdown |
|---|---|---|---|---|
| Gold (Ounce) | ×10.5 | +6.6% a year | 14.5% | −35.6% (December 2013) |
| CAC 40 GR | ×12.3 | +7.0% a year | 18.7% | −59.4% (April 2003) |
Figures calculated on 26/10/2026 from monthly closing prices. Past performance is no guide to future performance.
A sterile asset and a productive one
An ounce of gold in a vault stays an ounce of gold. It pays nothing, produces nothing, and in fact costs something to keep. Everything it can earn comes from what a later buyer agrees to pay — it is a bet on the price, and on nothing else.
The CAC 40 GR measures forty French companies, dividends included. Behind the curve there are employees, factories, brands and earnings distributed every year. That is what the "GR" adds to the index everyone quotes, and it is what makes the comparison fair: setting gold against the bare CAC 40 would strip equities of the part of their return that travels through dividends.
Two caveats for reading the curve
The first is currency. Gold trades in dollars on the world market; the page shows it in euros, like the CAC 40. Part of the gap between the two curves is therefore a move in the dollar against the euro rather than a performance of the metal. Over several decades, that move is not small.
The second is the role each plays in a portfolio. Gold often rises when equities fall, which no annual average can show: two assets can post similar returns while behaving in opposite ways through the troughs. Each one’s worst drawdown, shown under the chart, says more here than the performance does.
Frequently asked questions
Does gold protect against inflation?
Over very long periods it has preserved purchasing power. Over any given decade the relationship is much looser: it has lost ground through years of high inflation.
Why the CAC 40 GR and not the CAC 40?
Because the price index ignores dividends, which make up a large share of the return on French equities. Comparing that index with gold would understate equities with nothing to signal it.
Should costs be taken into account?
Yes, on both sides. Physical gold is bought at a premium and carries a storage cost; shares go through a broker, and the tax treatment depends on the wrapper used. Neither curve includes any of it.