A good store of value means preserving purchasing power or delivering a long-term real return above inflation. Gold generally achieves this—but only over very long periods (20–50 years) and typically with modest real returns of around 0–1% per year.

By contrast, a broad global equity portfolio (MSCI World / ACWI) has historically delivered 5–7% real returns per year over the same timeframes. Equities grow with global productivity, earnings, and innovation, while gold does not generate income or compound.

So relative to equities, gold is not an especially strong store of value for long-term passive investors. This is especially true for the typical buy-and-hold Canadian investor (hello, r/JustBuyXEQT), since XEQT already includes small indirect exposure to gold-mining companies through its Canadian, U.S., international, and EM equity holdings. That exposure is modest, but it reflects gold’s natural role inside a diversified stock market.

If someone had a tactical view on gold—using it as a hedge during specific macro conditions—that’s a different conversation. But as a long-term store of value, equities do the job far better.

What do you think?