Gold is among the top performing asset classes in 2024 | Fox Business Video (2024)

FAQs

Is gold the best performing asset? ›

Barron's Ben Levisohn, Andrew Bary and Elizabeth O'Brien discuss the faltering stock market on 'Barron's Roundtable.

In times of market volatility and uncertainty, the demand (and price) of gold increases as investors view it as a secure asset class.

The best performing Asset Class in the last 30 years is US Technology, that granded a +14.23% annualized return. The worst is US Cash, with a +2.27% annualized return in the last 30 years. Asset Classes can be easily replicated by ETFs.

Bitcoin was unfathomably the best performing macro asset of the last decade, outpacing even the giga tech stocks, including esteemed names like Tesla.

Although the price of gold can be volatile in the short term, it always has maintained its value over the long term. Through the years, gold has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering. World Gold Council. “Money and Gold.”

There are several potential risks to investing in gold, including: Price volatility: The price of gold can be volatile, and it may fluctuate significantly over short periods of time.

The bottom line. Gold still represents a safe investment, even though it has made a tremendous run in value as of late.

Insurance And Storage Costs

One notable risk associated with physical gold bullion is the cost of storage and insurance. If opting to hold physical metals in the form of gold coins or bullion bars, investors must pay storage and insurance fees to protect their investment.

Average annual return of gold and other assets worldwide 1971-2024. Between January 1971 and March 2024, gold had average annual returns of 7.98 percent, which was only slightly behind the return of commodities, with an annual average of eight percent. The annual average return of gold in 2023 was 13.1 percent.

What is the annual return of gold? ›

Annual returns

So far in 2024 (YTD), the Gold spot price index has returned an average 15.32%.

stocks: Which is the better investment? Stocks have generally performed better than gold over the years, but there can be exceptions. Looking back 20 years, for example, gold has outperformed the S&P 500.

Historically, the stock market (as measured by the S&P 500) has been a better investment than gold. Going back 40 years, the price of gold has increased 510% while the S&P 500 has increased more than 3,200%.

Gold is a proven hedge against inflation as it is said to preserve the real value of assets when other prices rise. This is because, unlike traditional fiat currencies, whose value can diminish as central banks print more money, gold's worth remains resilient.

Gold acts as a stable store of value by maintaining its purchasing power over long periods. It has limited supply growth, making it a rare tangible asset. During times of economic turmoil, when cash is devalued, gold prices often rise, thereby preserving wealth.