I’ve been observing how gold behaves in the markets for years, and honestly, what has happened over the last decade is hard to ignore. Recently, I went back to review the numbers again, and I was surprised once more: from 2015 to now, this precious metal has multiplied its value by nearly 4 times. It went from hovering around $1,000 per ounce to surpassing $4,200, which in terms of gold’s profitability means something close to 295% in just ten years. That equates to annualized growth of 7-8%, which is quite solid considering it generates no dividends or interest.

But what’s interesting isn’t just the final figure. If we look back over two full decades, the contrast is even more impressive. In the early 2000s, gold was around $400. Today, we’ve surpassed $4,200. That’s more than 10 times its original value—an accumulated increase of close to 900%. This is absolutely not a minor phenomenon.

Gold’s profitability has gone through very distinct phases. Between 2005 and 2010, it was practically an all-out bullish run: a weak dollar, oil prices surging, and post-crisis distrust following the subprime mortgage meltdown pushed the metal from $430 to above $1,200. When Lehman Brothers collapsed in 2008, it definitively sealed its role as a safe-haven asset. Central banks and institutional funds couldn’t stop buying.

Then came a period of calm between 2010 and 2015. Markets recovered, economies stabilized, and the Federal Reserve began normalizing interest rates. Gold moved sideways between $1,000 and $1,200, without the earlier explosions. It was more of a technical phase—an adjustment period.

But here’s the important part: starting in 2015, especially with the pandemic in 2020, gold rebounded strongly. Trade tensions between the U.S. and China, runaway public debt, and near-zero interest rates—all of that reignited demand. And when COVID-19 arrived, it was the ultimate catalyst. For the first time in its history, the metal surpassed $2,000, confirming that it still remained the trusted asset whenever everything starts to wobble.

The last five years have been an unprecedented escalation. From $1,900 in 2020 to over $4,200 today—this is a +124% increase in just five years. Over this period, gold’s profitability has even outpaced the S&P 500 and the Nasdaq-100, something that rarely happens over such long stretches. That says a lot about the inflation backdrop and the low-rate environment we’ve been in.

What truly fascinates me is how gold performs during crises. In 2008, while stocks plunged by more than 30%, gold barely retreated 2%. In 2020, when uncertainty paralyzed everything, it once again acted as the silent bodyguard that everyone needs. That’s not a coincidence; historically, gold shines when stocks start to doubt.

Of course, gold’s profitability doesn’t come out of nowhere. There are clear factors behind it. Negative real interest rates (nominal inflation minus nominal rates) strongly boost its demand. A weak dollar also supports it, since gold is priced in dollars. The inflation we’ve seen since the pandemic, along with massive public spending programs, rekindled investor worries, leading them to seek protection for their purchasing power with gold. In addition, geopolitical tensions, conflicts, and trade sanctions have made emerging central banks increase their metal reserves as a way to reduce dependence on the dollar.

So now the question is: how do you use all of this in a real portfolio? Gold shouldn’t be viewed as a speculative asset meant to get rich quickly. It’s more of a stability tool—an insurance policy. Financial advisors often recommend allocating between 5% and 10% of total assets to physical gold, ETFs backed by it, or funds that replicate its performance. In portfolios that are heavily exposed to stocks, that percentage works as a buffer against volatility.

Another advantage gold has is universal liquidity. In any market, at any time, you can convert it into cash without being affected by debt swings or capital restrictions. In times of financial uncertainty, that becomes especially valuable.

The reality is that gold’s profitability will continue to depend on confidence in financial systems. It’s not a substitute for growth, nor a promise of quick wealth, but it is the silent insurance that appreciates when other assets start to falter. In an increasingly uncertain world, it remains an essential piece of the puzzle.