Gold vs other assets: average 10-year returns 2023 | Statista (2024)

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Gold vs other assets: average 10-year returns 2023 | Statista? ›

10-year average return of gold and other assets worldwide 2023. As of December 2023, U.S. stocks had an average 10-year return rate of 12.75 percent, whereas gold had a return rate of 4.57 percent.

Gold: Had 8.86% average return over the last 20 years, often seen as a more stable asset. Stocks: Outperformed gold with 10.27% average return, but can be more volatile. Bonds: Lower returns than gold and stocks, typically seen as the least volatile of the three.

Gold provides a natural hedge against inflation and is regarded as a safe-haven investment during downturns in the economy. Many investors believe gold still has a place in long-term portfolios.

Gold is overvalued now and won't help you beat inflation in coming years. Gold (GC00) as an investment is likely to lag U.S. inflation by more than 7% a year over the next decade.

Gold is trading at a record high — so high, in fact, that the precious metal's performance has now eclipsed that of the S&P 500 in 2024.

To put this into perspective, we visualized the performance of gold alongside the S&P 500. See the table below for performance figures as of April 12, 2024. Over the five-year period, gold has climbed an impressive 81.65%, outpacing even the S&P 500.

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.

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.

As of December 2023, U.S. stocks had an average 10-year return rate of 12.75 percent, whereas gold had a return rate of 4.57 percent.

What investments are better than gold? ›

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.

Con: Gold won't produce income as rapidly as other assets

While stocks and bonds may offer dividends (a share of corporate profits paid to stockholders) and coupon rates (interest paid on bonds), the only way to earn an income by investing in gold is to take advantage of growth in the price of the commodity.

Gold is seen as much less risky than stocks over the long run. Stocks have higher volatility and a higher potential for losses. Gold's price has been far less volatile historically.

Gold in Rich Investors' Portfolios

It turns out the average ultra-high net worth individual (UHNWI) with a net worth over $30 million does own a little gold. They just don't own giant vaults and swim in gold like Scrooge McDuck. The average UHNWI holds about 2% of their net worth in gold.

Due to its reputation for being a safe-haven asset, gold tends to perform well during a recession. For example, when the stock market collapsed in 2007, investment demand for gold spiked and continued to rise, and gold doubled in value between 2007 and 2011.

Fluctuations in financial markets can also cause volatility in the price of gold. However, because so many investors purchase gold as a safe-haven asset, its value remains relatively constant. Long-term investments in the precious metal are unlikely to experience losses.

Vijay Marolia, money manager and managing partner at Regal Point Capital, expects the price of gold to be "at least" $3,000 an ounce in 10 years (the price of gold today is around $2,000 an ounce).

The returns on gold are linked to your holding period. In the last 20 years, the chances of your investment earning more than 10% return have been higher if the holding period has been 15 years. Even for a holding period of 10 years, the returns have mostly been in double digits since 2014.