Didier Darcet
9 April 2021

The One Golden Gram Rule

A few months ago, with a mischievous look in his eyes, Charles Gave noticed the S&P 500 was paying one gram of gold per annum in dividends!

  • March year-on-year S&P 500 dividends = $57.63
  • Gold price per ounce = $1,707.71
  • Number of grams per ounce of gold = 31.1035
  • Therefore dividends = 57.63 x 31.1035/1,707.71 ≈ 1 gram of gold.

What kind of hidden information lies behind this coincidence? Scarcity, efficiency, and the competition between them in asset markets.