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.

The return of gold as an investment reached almost 25 percent in 2020, and the annual average price of gold increased overall since 2015. The rate of return was 4.09 percent in 2023.

For example, through the end of 2023, the 10-year return for U.S. stocks reached 12.75%, while gold averaged only averaged 4.57% in the same time period, according to data from Statista.

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.

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.

Stocks are inherently volatile, experiencing fluctuations based on market conditions. However, historically, they've provided higher returns over the long term, averaging around 7-10%. On the other hand, gold is perceived as a stable investment, often retaining or increasing in value during economic uncertainties.

Investing $100,000 in gold is a significant decision that requires careful consideration of the market, the types of gold available, and the associated costs. Investors should research various dealers to find competitive premiums and consider their gold holdings' long-term storage and security.

The bottom line

Investing in 1-ounce gold bars can be a prudent move for those who are looking to diversify their portfolios and safeguard against economic uncertainties. However, it's crucial to approach this investment with a clear understanding of the market, associated costs and the long-term commitment required.

Looking back 20 years, for example, gold has outperformed the S&P 500. However, the historical data doesn't mean that stocks are guaranteed to have higher returns going forward, as past performance is no indication of what's going to happen next.

What is the ROI of gold? ›

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.

Gold is often hailed as a hedge against inflation—increasing in value as the purchasing power of the dollar declines. However, government bonds are more secure and have shown to pay higher rates when inflation rises, and Treasury Inflation-Protected Securities (TIPS) provide built-in inflation protection.

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.

Gold price stood at $2,334.80 per troy ounce

According to the latest long-term forecast, Gold price will hit $2,500 by the end of 2024 and then $2,700 by the end of 2025. Gold will rise to $3,000 within the year of 2027, $3,500 in 2028, $4,000 in 2030 and $5,000 in 2035.

Though it is difficult to predict the depreciation impact on gold prices in the short term, on a long-term basis, the impact is relatively stable. “Basis the historical records, Indian investors may expect around 3% additional yield over the dollar return of the gold on an annual basis on account of depreciation.