Actually you are when you consider inflation. $1 in 1980 had the buying power of $about $3.40 today. The price would have had to have more than tripled to actually be above water in real terms You wouldnt even be above water in inflated dollars until you sold it as gold doesnt pay dividends. People that really tout gold are generally adverse to taking that profit selling. Theres also the fact there was almost a 30 year period where it was underwater in the actual number without even account for inflation.