For centuries, gold has been more than just a precious metal. It has served as a universal store of value, a symbol of wealth, and a cornerstone of financial resilience.
But in an era marked by digital currencies, market volatility, and shifting global power dynamics, some investors find themselves wondering: Is investing in gold still worth it? The short answer is yes, especially when you understand its evolving role in modern portfolios.
Gold vs. Stocks and Bonds: A Matter of Timeframe
When comparing gold to equities or bonds, the conversation often hinges on timeframes. Over a 30-year stretch from 1990 to 2020, gold delivered a return of around 360%, a respectable figure, though considerably outpaced by the Dow Jones Industrial Average’s 991% gain. This narrative is commonly used to downplay gold’s performance.
However, zoom in on a different window, say, from the year 2000 to the mid-2020s, and gold actually outperformed the S&P 500. The difference? The early 2000s saw a series of shocks: the dot-com crash, the global financial crisis of 2008, a pandemic, and most recently, geopolitical uncertainty and inflationary pressures.
Gold tends to perform best during times of market stress, where its status as a safe-haven asset becomes more than symbolic. In short, gold may not always be the top performer, but when markets stumble, gold shines.
Why Gold Remains a Strategic Asset in 2025
Unlike stocks or bonds, gold’s value lies in price appreciation and its unique function as a financial hedge. Here are a few reasons gold continues to play a vital role:
Inflation protection: Gold typically retains purchasing power when fiat currencies weaken.
Safe-haven asset: In times of geopolitical tensions, crisis, or economic collapse, investors often flock to gold.
Store of value: Gold is recognised globally and maintains intrinsic value across borders and generations.
Portfolio stabiliser: Gold’s performance often runs counter to equities, providing useful diversification.
Gold’s strategic function, especially during turbulent periods, makes it an essential component for long-term wealth preservation.
The Modern Gold Landscape: What’s Driving Value Today?
The dynamics influencing gold’s value have evolved over the decades. It’s no longer just about jewellery or central banks. It’s about global positioning, market innovation, and environmental considerations.
Central banks: Many nations, especially in emerging markets, are increasing their gold reserves to reduce reliance on the U.S. dollar and insulate their economies from currency shocks.
Environmental impact: A growing number of investors are prioritising ethical sourcing, seeking out recycled gold, or supporting mines with better environmental practices.
Currency shifts: Traditionally, gold moves inversely to the U.S. dollar. However, in 2024, gold reached a nominal record high of over $2,700 per ounce, even as inflation cooled and the dollar remained firm, signalling that its appeal may be widening beyond conventional metrics.
In Q1 2025, gold reached another notable peak, hitting $2,431 per ounce, continuing its run as one of the most closely watched assets in uncertain times.
So, Should You Still Invest in Gold?
For investors focused on long-term wealth preservation, resilience during market downturns, and hedging against systemic risk, gold remains a highly relevant asset in 2025.
It’s not about choosing gold over stocks or bonds. It’s about complementing your portfolio with an asset that behaves differently when the world changes. And the world is changing, faster than ever.
Own Gold: A Trusted Way to Invest in Gold
At Own Gold, we offer more than access to gold. We provide a secure, transparent, and globally managed way to invest with confidence. Whether you’re new to gold or expanding a diversified portfolio, our team helps you navigate today’s markets with the clarity and control you deserve.
From secure storage and purchase options to personal guidance and institutional-grade service, we’re here to help you protect your wealth, on your terms, in your time.
Curious about how it all works?
Explore our investment process to see how we help clients invest with confidence or get in touch with our team for tailored guidance on starting your gold journey.
