Decade of Gains: How Gold Price Increases Over 10 Years Stack Up Against Stocks

The Numbers Tell an Interesting Story

Let’s cut to the chase. A decade ago, gold was trading around $1,158.86 per ounce. Fast forward to today, and you’re looking at approximately $2,744.67 per ounce. That’s a 136% jump over ten years, translating to an average annual return of 13.6%.

Here’s the reality check: if you’d dropped $1,000 into gold back then, you’d be sitting on roughly $2,360 now. Not bad. But before you rush to liquidate your stock portfolio, consider this—the S&P 500 climbed 174.05% during the same period, averaging 17.41% annually. Even accounting for gold’s tangible appeal, equities still came out ahead.

Why Gold’s Track Record Is So Messy

The thing about gold is that it doesn’t behave like traditional assets. Unlike stocks or real estate that generate actual cash flow and revenue, gold just… exists. It’s a store of value that doesn’t produce anything. When the economy runs smoothly, that distinction barely matters. But throw in a crisis, and suddenly everyone wants a piece of it.

Take the 1970s as an example. After Nixon decoupled the dollar from the gold standard in 1971, prices shot through the roof—40.2% average annual returns. The party didn’t last long, though. By 1980 onward through 2023, gold averaged just 4.4% annually. The 1990s? Gold lost money most years. That’s the volatility problem. Gold price movements over the past decade have been erratic, swinging based on sentiment and geopolitical noise rather than fundamentals.

When Investors Actually Buy Gold

Here’s where gold earns its keep: during chaos.

In 2020, when COVID sent markets into freefall, gold surged 24.43%. Why? Because when everything else feels risky, investors flock to something that’s held value for thousands of years. It’s insurance, not a growth play.

The same logic applies to inflation spirals. When your currency gets hollowed out by rising prices, hard assets shine. Gold jumped 13.08% in 2023 as inflation anxiety gripped markets. Analysts are forecasting another 10% bump in 2025, potentially pushing prices toward the $3,000 mark.

The Real Use Case for Gold in Your Portfolio

Let’s be honest: don’t expect gold to outpace your stock returns. That’s not its job. Gold’s value lies in its non-correlation to equities. When financial markets crash, gold often rises—the inverse relationship investors crave for portfolio diversification.

Think of it as a hedge, not an engine for wealth building. Gold won’t generate dividends or rental income. But it will hold value when everything else tanks, which is why smart investors maintain some allocation to it. The gold price increase over the past 10 years proves it’s a legitimate portfolio defense mechanism, even if the overall returns lag behind traditional stocks.

So is gold a good investment? That depends on whether you’re chasing maximum returns or maximum peace of mind.