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- Gold vs. Equity: A Comparative Performance Analysis Across 19 Global Markets in the 21st Century
Gold vs. Equity: A Comparative Performance Analysis Across 19 Global Markets in the 21st Century
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Gold has long been viewed as a safe-haven asset, often sought after during times of economic uncertainty and market downturns. In contrast, equity markets provide opportunities for higher returns but come with greater volatility. A comprehensive analysis of 19 markets worldwide in the 21st century reveals that gold has outperformed equities in most regions, often by significant margins.
Key Takeaways
In developed markets, gold has outperformed equities in countries such as Japan (by 6.7%), the UK (6.3%), and France (5.2%).
In emerging markets, gold delivered superior returns in Turkey (by 8.2%) and Brazil (6.4%).
India was the only country where equities outperformed gold, but the margin was small (0.9%).
Over the past 20 years, the majority of stocks in global indices have failed to surpass gold's returns, reinforcing its role as a strong wealth-preserving asset.
Gold vs. Equity: Performance in Developed Markets
The performance of gold relative to equity markets in developed economies shows a clear pattern of gold dominance in many regions. The table below highlights how gold has exceeded equity returns in various developed markets.
Developed Markets: 2000–2025 Performance
Country | Equity Market Returns (Local Currency) | Gold Returns (Local Currency) | Gold’s Excess Return Over Equity |
|---|---|---|---|
Japan | 4.6% | 11.3% | 6.7% |
UK | 4.3% | 10.6% | 6.3% |
France | 4.2% | 9.3% | 5.2% |
Canada | 7.3% | 9.4% | 2.1% |
USA | 7.8% | 9.4% | 1.6% |
Indonesia | 12.6% | 13.1% | 0.5% |
Australia | 9.8% | 9.7% | -0.1% |
Japan, the UK, and France witnessed gold outperforming equities by over 5%.
In the U.S. and Canada, gold exceeded equity returns, but the margin was narrower (1.6% and 2.1%, respectively).
Australia was the only developed market where equities slightly outperformed gold, though the difference was minimal (-0.1%).
Gold vs. Equity: Performance in Emerging Markets
Emerging markets, known for their high growth potential and volatility, have seen varying results in the gold vs. equity comparison.
Emerging Markets: 2000–2025 Performance
Country | Equity Market Returns (Local Currency) | Gold Returns (Local Currency) | Gold’s Excess Return Over Equity |
|---|---|---|---|
Turkey | 21.1% | 29.3% | 8.2% |
Brazil | 8.2% | 14.6% | 6.4% |
Poland | 4.4% | 9.3% | 4.9% |
South Korea | 5.6% | 10.5% | 4.9% |
Chile | 7.7% | 12.2% | 4.5% |
Argentina | 39.8% | 44.4% | 4.6% |
Malaysia | 6.4% | 10.0% | 3.7% |
China | 5.6% | 8.8% | 3.2% |
Mexico | 10.5% | 12.8% | 2.4% |
Hungary | 9.4% | 11.4% | 2.0% |
South Africa | 13.2% | 14.4% | 1.1% |
India | 13.4% | 12.5% | -0.9% |
Turkey and Brazil saw gold returns exceed equity returns by 8.2% and 6.4%, respectively.
Other emerging markets, including Poland, South Korea, and Chile, also saw gold outperform equities by over 4%.
India was the only country where equity returns (13.4%) exceeded gold returns (12.5%), though by a narrow margin of 0.9%.
Stock Market Performance vs. Gold Over 20 Years
An analysis of individual stock performance in major indices further supports gold's strength. The table below highlights the percentage of stocks in each country's index that managed to outperform gold's 20-year returns.
Stock Market vs. Gold: 2005–2025 Performance
Country | Stock Index | Gold Returns Over 20 Years | Number of Stocks Beating Gold | % of Stocks Beating Gold** |
|---|---|---|---|---|
India | Nifty 500 | 13% | 193 | 43% |
USA | S&P 500 | 10% | 54 | 11% |
UK | FTSE 100 | 12% | 1 | 1% |
Japan | Nikkei 225 | 12% | 3 | 1% |
China | CSI 300 | 9% | 79 | 29% |
(**Excludes adjustments for mergers and acquisitions.)
India saw the highest percentage of stocks (43%) beating gold, indicating a strong equity market.
In contrast, in the U.S., UK, and Japan, fewer than 11% of stocks managed to outperform gold, emphasizing gold’s strength as an investment.
Why Has Gold Outperformed?
Several factors contribute to gold's superior performance in most markets:
Inflation Hedge: Gold retains its value over time, making it an effective hedge against inflation.
Economic Uncertainty: Investors flock to gold during recessions, financial crises, and geopolitical tensions.
Currency Depreciation: In many emerging markets, local currency depreciation has amplified gold returns.
Stock Market Volatility: While equities can deliver strong returns, they are subject to significant price fluctuations.
Conclusion: Is Gold a Better Investment Than Stocks?
The data from the past 25 years clearly shows that gold has outperformed equities in most countries, both in developed and emerging markets. While equity investments can generate substantial returns, they come with higher risk.
Key Insights:
Gold remains a crucial asset for long-term wealth preservation.
Stocks can deliver superior returns, but only a limited number consistently outperform gold.
Diversification remains key—a balanced portfolio with both gold and equities can help mitigate risk.
As global markets continue to experience uncertainty, gold remains a compelling investment choice for both risk-averse and long-term investors.
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