Gold vs Stocks: The 10-Year Showdown That Might Surprise You

Fancy a reality check on your portfolio allocation? Let’s talk numbers.

The Setup: Drop $1,000 into gold a decade ago. Fast forward to today—you’re sitting on roughly $2,360. Not bad, right? That’s a 136% gain over 10 years, averaging 13.6% annually.

But here’s the catch: The S&P 500 did 174% over the same period (17.41% yearly), and that’s before dividends. So yeah, stocks still crushed gold.

Why the difference? Gold doesn’t generate cash flow—it just… exists. Stocks throw off earnings, growth potential, dividends. Gold is basically a pretty hedge you’re betting will hold value when everything else melts down.

The real story: Gold’s returns are wild and unpredictable. The 1970s? Legendary—40.2% annual average. The 1980s-2023? Pathetic—just 4.4% yearly. Gold loses money in stable years, then surges during chaos (2020: +24.43%, 2023: +13.08%).

Why investors still buy it: It’s the ultimate “when SHTF” asset. Markets crash? Gold usually goes up. Currency inflates? Gold rises. It’s non-correlated to stocks, which means portfolio diversification.

Forecast check: Analysts expect gold to climb ~10% in 2025, potentially hitting $3,000/oz.

The verdict: Gold isn’t trying to beat stocks. It’s insurance. You don’t buy insurance hoping it pays off big—you buy it so you sleep at night when the roof catches fire.