Gold vs other assets: average 20-year returns 2023 | Statista (2024)

FAQs

Gold vs other assets: average 20-year returns 2023 | Statista? ›

As of December 2023, gold had an average 20-year return rate of 8.86 percent, which was only slightly behind U.S. stocks with a rate of 10.27 return rate.

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.

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.

So, over the longer term, stocks seem to outperform gold by about 3-to-1, but over shorter time horizons, gold may win out. Indeed, if we go way back to the 1920s through today, stock returns blow gold away.

How gold and stocks have performed over time. 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.

Gold has increased seven-fold since 2000. For the Dow industrials to have kept up, they should now be at 70,000, twice the current level.

The price of the yellow metal has grown not just in the short-term rally of the past 5 years, but even over periods of 10 years and 15 years. It has risen around 2.48 times and 4.86 times, respectively, from the levels of Rs 14,710 in 2014 and Rs 6,100 in 2004.

Gold's returns over the same span haven't been quite so brilliant. From 1980 through 2023, the yellow metal generated an annualized return of 3.2% before inflation. After adjusting for inflation, gold produced an annualized return of 0.02%.

How well does gold do in a recession? ›

While the price of the yellow metal has an inversely proportional relationship to inflation rates, gold is less affected by recessions than many commodities. Gold is consistently in demand around the world, so a recession in any one region is unlikely to skew its international value.

Ultimately, the answer depends on your investment objectives, risk tolerance, and age. According to financial experts, most investors make precious metals like gold anywhere from 1-10 percent of the total value of their portfolios.

According to more conservative forecasts, gold may rise to $2,800.00. The XAUUSD rate depends on interest rates, changes in global supply and demand, geopolitical tensions, currency devaluations against rising global inflation, and fluctuations in world currencies.

Gold Has Outperformed the S&P 500 So Far in 2024 | Money.

First off, the reality is you don't have to choose: A diversified investing portfolio typically includes a mix of stocks and bonds, and some experts recommend including gold investments as a "safe haven" asset as well (usually no more than 5 to 10% of your portfolio).

It's important to note that gold prices have historically been volatile and have fluctuated quite a bit over time. The price of gold, like any other commodity, is subject to the laws of supply and demand.

On the other hand, the price of gold will rise dramatically in 20 years: between 2000 and 2020, the price of gold would have risen by 400%. And this gold rush is nothing but a consequence of the economic, financial and health crises that have marked the 21st century.

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.