Recently, I have been reviewing the historical behavior of gold, and there is something that continues to surprise me: in just two decades, this metal has multiplied its value more than ten times. It went from around $430 per ounce at the beginning of the 2000s to reach all-time highs near $4,270 last October. That is an accumulated increase of nearly 900%, nothing to dismiss for an asset that does not generate dividends or interest.

What’s interesting is analyzing how that return has been distributed. If we look specifically at gold’s performance over the last 10 years, from 2015 to 2025, we are talking about an extraordinary advance. It went from just over $1,000 to surpass $4,200, representing a revaluation of close to 295% in nominal terms. Translated into a compounded annual rate, we’re talking about returns between 7% and 8% annually, something remarkable considering the volatility it has experienced.

This performance has been achieved in a context of constant uncertainty, with phases of consolidation and significant corrections. In 2018 and 2021, gold practically stagnated while equities continued to hit new highs. But when inflation reappeared and interest rates dropped to historic lows, the metal shined again. That is what defines its behavior: it acts as a refuge when everything else wobbles.

Comparing raw numbers, the Nasdaq-100 remains the big winner of this century with over 5,000% accumulated. The S&P 500 hovers around 800%. But here’s the revealing part: in the last five years, gold has outperformed both indices in accumulated returns. Something that almost never happens over extended periods. During the 2008 crisis, while stocks plummeted more than 30%, gold only retreated 2%. In 2020, when panic paralyzed markets, it again acted as an anchor.

Gold’s performance over the last 10 years responds to very specific factors. Negative real interest rates, the weakening of the dollar at various moments, runaway inflation after the pandemic, massive public spending programs. Central banks of emerging countries have also increased their gold reserves seeking to reduce dependence on the dollar and diversify. All of this has converged to create an environment where the precious metal has gained prominence.

It’s important to understand that gold is not an asset for quick wealth. Its role in a balanced portfolio is different: to protect real value against unforeseen shocks. Most advisors recommend an exposure of between 5% and 10% of assets in physical gold or backed ETFs. In portfolios heavily exposed to equities, it acts as insurance against volatility.

Another advantage often overlooked is its universal liquidity. In any market, at any time, it can be converted into cash without suffering the swings of debt or capital restrictions. In times of monetary tensions, this becomes especially valuable.

Looking back, the history of gold over two decades can be divided into four stages. First, the 2005-2010 boom, driven by dollar weakness and the subprime mortgage crisis. Lehman Brothers in 2008 cemented its role as a refuge. Then came the correction from 2010-2015, when markets stabilized and gold moved sideways between $1,000 and $1,200. The revival arrived from 2015-2020 with trade tensions and COVID-19 as the definitive catalysts. And finally, the unprecedented climb from 2020-2025, where it went from $1,900 to over $4,200 in just five years, a +124%.

In conclusion, gold’s performance over the last 10 years demonstrates something fundamental: when investors lose confidence in the system—due to inflation, debt, or geopolitical uncertainty—gold returns to center stage. It is not a substitute for growth nor a promise of quick wealth. It is a silent insurance that appreciates when other assets wobble. For those building a balanced portfolio, it remains an essential piece of the global financial puzzle.