How gold has accumulated a +295% increase in the last 10 years: an analysis of its unparalleled profitability

A metal that outperforms Wall Street in the last decade

As we write this in October 2025, gold is trading around $4,270 per ounce, tripling the price it recorded just a decade ago. To understand the magnitude of this revaluation, one number suffices: since 2015, when it was barely over $1,000, the precious metal has accumulated a gain of +295% in nominal terms. Translated into annualized returns, this means between 7% and 8% each year, a remarkable figure for an asset that does not generate dividends or interest.

This behavior contrasts revealingly with traditional investment theory. In the last five years, gold has outpaced both the S&P 500 and the Nasdaq-100, demonstrating that in certain macroeconomic contexts, precious metals can shine brighter than U.S. equities.

The evolution of gold: four acts in a story of transformation

Gold’s twenty-year journey can be divided into well-differentiated stages. Between 2005 and 2010, the metal experienced its most powerful boom phase: rising from 430 to over 1,200 dollars per ounce thanks to dollar weakness, energy price surges, and crucially, the 2008 mortgage crisis. That financial collapse cemented its reputation as a safe haven asset.

The following decade (2010-2015) was more subdued. As economies stabilized and the Federal Reserve began normalizing interest rates, gold entered a sideways phase, oscillating between 1,000 and 1,200 dollars. It wasn’t a spectacular move, but it served as a defensive hedge.

From 2015 to today, the metal has starred in two redemption acts. First, between 2015 and 2020, it reactivated demand amid U.S.-China trade tensions and ultra-accommodative monetary policy. Then, from 2020 onward, the pandemic catalyzed an unprecedented movement: gold jumped from 1,900 to over 4,200 dollars, a rise of +124% in just five years.

Comparative profitability: why did gold beat Wall Street?

The final numbers speak for themselves:

Data as of October 21, 2025, Google Finance

What’s revealing is not only that gold has matched the S&P 500 in accumulated returns or surpassed the Nasdaq in the last five years. The crucial point is understanding under what conditions it achieved this: during periods of high inflation, negative real interest rates, and geopolitical volatility. This is no coincidence.

In 2008, when markets plunged over 30%, gold barely retreated by 2%. In 2020, amid pandemic uncertainty, it again acted as a defensive cushion. This “safe haven in crisis” characteristic is what sets it apart from any stock index.

What drives gold’s profitability: beyond the spot price

Four forces explained the upward trajectory of the metal in the last decade:

Negative real interest rates — the nominal yield minus inflation — have been allies of gold. When bonds offer no real return, gold competes as a store of value without erosion.

The weak U.S. dollar has been a silent accomplice. Since gold is traded in dollars, a fragile dollar makes the metal cheaper for international buyers and more attractive. Since 2020, the dollar’s depreciation has coincided with the biggest bullish surges.

Reawakened inflation after the pandemic accelerated the search for refuge. Massive public spending programs raised inflation expectations, and investors turned to gold to protect purchasing power.

Geopolitical tensions — trade sanctions, regional conflicts, energy policy changes — have once again placed gold at the center of reserve strategies by central banks of emerging countries.

From theory to practice: how much gold is enough in your portfolio

For the modern investor, gold is not speculation but a stabilizer. Professional managers often recommend an allocation of 5% to 10% of total assets in physical gold, ETFs backed by the metal, or replication funds.

Its decisive advantage is universal liquidity: anywhere in the world, at any time, it can be converted into cash without market frictions or capital restrictions. In environments of monetary tension — as we have seen with volatile sovereign debt — this feature becomes invaluable.

In portfolios heavily concentrated in equities, that 5-10% acts as a silent insurance that cushions declines without sacrificing growth potential.

The verdict: why gold remains essential

After two decades of analysis, the conclusion is clear: gold does not generate wealth through dividends or corporate profits but preserves existing wealth during moments of eroded confidence. When inflation, debt, political uncertainty, or global conflict threaten, the metal reemerges as a protagonist.

In the last decade, it has proven competitive even against the largest stock indices. In the last five years, it has outperformed them. This is no coincidence: investors seek stability in an environment that offers less and less of it.

Neither a substitute for growth nor a promise of quick enrichment: gold is the financial insurance that appreciates when other assets falter. For any balanced portfolio, gold’s performance over the past 10 years demonstrates that it remains an irreplaceable piece of the global puzzle.