Consistent Gains Across Timeframes
Gold has proven itself as a solid investment when held over long periods. A recent dataset shows gold’s performance in US dollar terms over different purchase dates. For example, if someone bought gold in January 2000, the annualized return would be around 10%. Buying in January 2011 would have given you a 6.2% return per year, and gold purchased in January 2022 has shown a 19% return per year till now. The return figures range between 4% and more than 30%, depending on when you bought.
Gold Since 2015 Has Been Strong
What’s most interesting is that since 2015, there has not been a single 10-year rolling period where gold gave less than a 10% annual return. In simple terms, if you had bought gold anytime since 2015 and held it, you are likely enjoying double-digit gains. And when you convert these dollar-based returns to Indian rupee terms, the returns are even better—close to 13–15% annually. That’s quite impressive, especially for an asset known more for safety than speed.
Gold vs. Equity—Different Roles
It’s important to understand that gold is not meant to beat equity markets. While it has done that in some periods and currencies, the main role of gold is not to be the best-returning asset. Instead, gold plays a different role in your portfolio. It helps you when the rest of your investments—especially stocks—are not doing well. It works like a safety net or a hedge during tough market times.
Portfolios with Gold Are Holding Strong
Right now, as global markets go through a period of uncertainty and volatility, portfolios that had decent amounts of gold are doing much better. Some of these portfolios are even sitting near their all-time highs, thanks to the support gold has given. This just goes to show how important the role of gold is when stocks are shaky.
Gold Allocation Should Be Meaningful
Many investors think that just 2–4% allocation to gold is enough. But small percentages like that don’t do much. If gold is only 2% of your portfolio, it won’t make a meaningful impact when markets go down. To truly feel its benefits, gold needs to have a stronger presence in your portfolio. A more balanced allocation can offer real stability during uncertain times.
Final Thought
Gold may not always be exciting, but it’s reliable. It brings calm when markets panic. And for any long-term investor, that’s a good reason to consider holding it seriously.
On The Momentum Podcast this week
From F&O failure to momentum master—Rachit’s journey is a must-watch!
Learn how he escaped a 30% crash with just 4% drawdown and built a stress-free investing strategy.
Catch the full story now!
