Recently, I reviewed how gold has evolved over the past 10 years, and the truth is that the numbers speak for themselves. We are talking about an asset that went from around $1,100 USD per ounce in 2015 to surpass $4,200 USD in 2025. That’s a +295% increase over a decade. It’s not speculation; it’s pure and simple gold profitability over the last 10 years.

What’s interesting is that this gold return over the last 10 years translates into a 7-8% annual compounded rate. For an asset that doesn’t generate dividends or interest, that’s quite solid. And here’s the best part: it achieved this in an environment of constant volatility, with sharp corrections in 2018 and 2021, but always rebounding when inflation or uncertainty returned to the scene.

If you compare this to the S&P 500 or the Nasdaq-100, in the last five years, gold outperformed them. Yes, you read that right. In a period where U.S. stocks dominated, the yellow metal took the victory. The S&P 500 has accumulated nearly 800% since 2005, but gold is close to 850% if you count from the same starting point. The Nasdaq-100 remains the king with over 5,000%, but the gap narrows each year.

The reason is simple: when the market panics, gold shines. In 2008, while stocks plummeted more than 30%, gold only retreated about 2%. In 2020, during the COVID chaos, the same happened. It’s the classic counter-cyclical behavior we all look for in a portfolio.

Analyzing the last twenty years carefully, I can divide this into clear phases. Between 2005 and 2010 was the explosion: it went from $430 USD to over $1,200 USD in five years, driven by the dollar’s weakness and the subprime mortgage crisis. Lehman Brothers collapsed, and gold became the favorite safe haven. From 2010 to 2015 was calmer, almost sideways, moving between $1,000 and $1,200 USD as markets recovered. Then came 2015-2020, where gold resurged strongly thanks to trade tensions between the U.S. and China, increased public debt, and interest rates dropping to historic lows.

But what was truly spectacular was 2020-2025. In just five years, the metal went from $1,900 to over $4,200 USD. That’s a +124% increase in half a decade. Unprecedented.

Why does this happen? It’s deeper than just numbers. Negative real interest rates make gold attractive. When the European Central Bank and the Federal Reserve injected money through quantitative easing, bonds lost real returns, and investors flocked to gold. A weak dollar also helps because gold is traded in dollars. When the U.S. currency loses value, the price of gold in global terms rises even more. And then there’s inflation, which has been the most recent catalyst. Massive public spending programs during the pandemic rekindled fears of inflation, and that’s where gold thrives.

I can’t help but mention that central banks in emerging countries have been buying gold like crazy to reduce their dependence on the dollar. That creates structural demand pressure that supports prices.

Now, what does this mean for you as an investor? Gold isn’t an asset for getting rich quickly. It’s insurance. Financial advisors usually recommend allocating between 5% and 10% of your portfolio to gold, whether physical, ETFs, or funds that replicate its behavior. If you have high exposure to equities, that percentage acts as a cushion against volatility.

An additional advantage is universal liquidity. At any time, anywhere in the world, you can convert gold into cash without friction. In times of monetary crisis or political uncertainty, that’s invaluable.

Looking back, gold’s profitability over the last 10 years wasn’t a coincidence. It was the result of monetary policy decisions, inflation, geopolitical tensions, and the search for stability. Investors need anchors in an increasingly volatile world, and gold remains the most reliable. It’s not glamorous, but it works. And that’s what ultimately matters.