If you had decided to buy gold ten years ago, how much would it be worth now? This question sounds simple, but the answer is quite interesting.
Gold's Performance Over the Past Ten Years
Ten years ago (around 2015), the average trading price of gold was approximately $1,158.86 per ounce. Today, it has risen to $2,744.67 per ounce. What does this mean? If you had invested $1,000 in gold at that time, it would now be worth about $2,360—an increase of 136%, with an average annual return of 13.6%.
At first glance, this number looks quite impressive. But when you compare it to the stock market, the picture changes.
Gold vs Stocks: Who Won?
During the same period, the S&P 500 index increased by 174.05%, with an average annual return of 17.41%, not including dividend yields. In other words, the stock market performed significantly better over these ten years.
But here is a detail worth noting.