Strong Data From the Last 25 Years
The data from the last twenty-five years shows how equity markets have performed in many countries from the year 2000 to 2025. The returns are shown in local currency. Countries like Turkey, Argentina, Brazil, and India are part of this data (see the image below). Equity returns look different in each country, but the numbers give a clear long-term view.
Equity Returns in Emerging Markets
In emerging markets, equity returns have been mixed. Turkey shows around 20 percent return in local currency. Argentina shows close to 40 percent. India shows about 13.3 percent. These numbers look good at first glance, but they are only one side of the story.
Gold Returns Are Higher
When we look at gold returns for the same period, the picture changes. In India, gold gave around 14.3 percent return. In Turkey, gold returns were around 31 percent. In Argentina, gold gave nearly 47 percent. Brazil also showed strong gold returns. In every emerging market, gold performed better than equity.
Same Trend in Developed Markets
This trend is not limited to emerging markets. Developed markets also show similar results. Countries like Japan, the UK, and France saw gold returns that were much higher than equity (see the image below).
When equity gives only 4 percent and gold gives close to 10 percent over many years, it becomes a big difference in long-term wealth.
Why Gold Is Important in a Portfolio
This data clearly shows why gold is important in a portfolio. Gold acts as protection and support for equity investments. It works as insurance and also gives strong returns.
A Simple Long-Term Message
No matter where you live, in a developed or emerging market, gold deserves a place in your portfolio. It has shown better returns than equity in many cases and also protects during tough times. A balanced allocation to gold helps improve returns and reduces risk over the long run.
