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

Imagine you threw $1,000 into gold back in 2015. Fast forward to today—it’s now sitting at roughly $2,360. Not bad, right? That’s a 136% gain over a decade.

But here’s where it gets spicy: the S&P 500 crushed gold over the same period, posting a 174% return. Yep, stocks left gold in the dust.

Why Gold Isn’t a Wealth Builder (But It Might Save Your Ass)

The thing about gold is it doesn’t do anything. No dividends, no cash flow, no productivity. It just sits there looking shiny while you wait for a financial crisis to happen. Compare that to stocks and real estate, which actually generate revenue.

But that’s exactly why people love it. Gold is the ultimate insurance policy. When geopolitical chaos erupts or inflation goes bonkers, investors dump everything else and run to gold. Remember 2020? Gold popped 24%. In 2023’s inflation panic? Up 13%.

The Historical Reality Check

Thing is, gold’s been all over the map historically. Back in the 1970s-80s, it was on fire (averaging 40%+ returns). Then the 1980s-2023 era? Mediocre 4.4% average. The 1990s were straight-up brutal for gold holders.

The Bottom Line

Gold isn’t an investment for wealth building—it’s a hedge. A diversification play. When everything else crashes, gold typically holds value or rises. That’s worth something if you’re paranoid (rightfully so) about market meltdowns.

Current forecast: gold could hit around $3,000/oz by 2025 if predictions hold. But don’t expect it to compete with equities for returns.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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