Gold Outperforms Equities Globally Over 25 Years

Key Insight

According to the DSP Netra report, gold has consistently outperformed equities in local currency terms across both developed and emerging markets during the 21st century (1999–2025).

The report states: “Gold has beaten every major equity market over the 21st Century. There’s a start and end point bias, but living through this era with zero gold allocation would’ve been a real-world mistake.”

Developed Markets – Excess Returns of Gold Over Equities

• Japan: 7.6%
• UK: 7.1%
• France: 6.3%
• US: 3.0%
• Canada: 2.8%
• Australia: 1.3%

Emerging Markets – Excess Returns of Gold Over Equities

• Turkey: 10.6% (highest)
• Argentina: 7.5%
• Brazil: 6.9%
• Malaysia: 6.4%
• Poland: 5.0%
• South Korea: 4.5%
• Chile: 4.5%
• Mexico: 2.9%
• Hungary: 2.1%
• South Africa: 1.2%
• India: 1.0% (lowest among listed markets)

Context

• The findings are based on Bloomberg portfolio indices data (Dec 1999–2025).
• Gold’s resilience reflects its role as a safe-haven asset, particularly during periods of market volatility, inflation, and geopolitical uncertainty.
• While equities delivered strong growth in certain regions, gold’s risk-adjusted returns and ability to preserve wealth made it a standout performer globally.

Outlook

The report underscores the importance of strategic gold allocation in portfolios. Even modest exposure could have significantly improved returns and reduced risk over the past 25 years.