Gold multiplies by 10 times in 20 years: why does it still remain the best protection against uncertainty?

Gold Price Reaches All-Time Highs

In October 2025, gold is trading near $4,270 per ounce, consolidating an unprecedented trajectory. To put this movement into perspective: just two decades ago, it cost around $400, ten years ago it hovered around $1,100. In real terms, its price has multiplied more than 10 times, resulting in an accumulated gain of 900%.

The most surprising aspect is not just the absolute level but the speed of the recent rally. Between 2020 and 2025, the metal has risen from $1,900 to over $4,200, a jump of 124% in just five years. This surge compels us to rethink how we understand defensive assets in modern portfolios.

Returns That Challenge Traditional Logic

Over the past decade, gold’s annualized gain has hovered around 7% to 8%, an extraordinary figure for an asset that does not generate dividends or interest. The most revealing: in the last five years, gold has outperformed both the S&P 500 and the Nasdaq-100, something unusual over extended periods.

Comparing raw numbers can be misleading. Over 20 years, the Nasdaq-100 has accumulated over 5,000%, but gold is closer to 850% since 2005. However, its defensive behavior is what truly sets the precious metal apart. In 2008, when stock markets fell more than 30%, gold only retreated about 2%. In 2020, as panic paralyzed markets, it again acted as a safe haven.

The Evolution of Price in Four Acts

2005-2010: The Uncertainty Boom

Gold went from $430 to surpass $1,200, driven by dollar weakness, soaring oil prices, and distrust following the subprime mortgage crisis. Lehman Brothers’ collapse in 2008 cemented its status as a refuge, intensifying purchases by central banks and institutional funds.

2010-2015: Lateral Movement and Technical Adjustment

After the crisis, markets stabilized, and gold moved between $1,000 and $1,200. It was a period of more technical than structural consolidation, maintaining its defensive role without offering extraordinary gains.

2015-2020: The Return of Defensive Demand

Trade tensions, expansion of public debt, and record-low interest rates revived its appeal. COVID-19 acted as a catalyst: gold surpassed $2,000 for the first time, confirming its role during global crises.

2020-2025: Unprecedented Appreciation

This period records the largest nominal revaluation. The metal has gone from $1,900 to over $4,200, representing a +295% increase in nominal terms since 2015, translating to a compound annual rate of 7% to 8%.

Why Does Gold Shine More Than Ever?

The reasons behind this gold price evolution are no coincidence:

Negative real interest rates: When yields adjusted for inflation fall below zero, gold attracts investment. Global quantitative easing significantly reduced real bond yields.

Dollar weakness: Since gold is traded in US dollars, a depreciation of the dollar boosts its price. The last 20 years show a clear correlation between both movements.

Inflation and fiscal spending: Massive post-pandemic stimulus programs rekindled inflation fears. Investors seek to protect purchasing power, and gold is their preferred tool.

Geopolitical tensions: Conflicts, trade sanctions, and energy policy shifts act as additional drivers. Emerging central banks increase gold reserves to reduce dependence on the dollar.

How to Incorporate Gold into Your Investment Strategy

Gold should not be viewed as speculation but as a portfolio stabilizer. Financial advisors recommend exposure of 5% to 10% of total assets through physical gold, gold-backed ETFs, or replication funds.

In portfolios heavily exposed to equities, this percentage acts as insurance against volatility. The key advantage: universal liquidity. In any market, at any time, it can be converted into cash without capital restrictions or dependence on credit conditions.

During times of monetary tensions or financial uncertainty, this feature becomes especially valuable. Gold does not generate extraordinary returns but stabilizes what matters: your real purchasing power.

The Verdict on Gold Price Evolution

Two decades of data confirm that gold remains an unavoidable benchmark in finance. Its profitability does not depend on dividends or corporate balances but on something more fundamental: trust.

When this trust erodes due to inflation, debt, or political instability, gold takes center stage. It has proven to compete with major stock indices and, in the last five years, has outperformed them.

It is not a substitute for growth nor a promise of quick wealth. It is silent protection that appreciates when other assets falter. For those building balanced portfolios, it remains exactly what it was twenty years ago: an essential piece of the global financial puzzle.