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How gold has performed versus equity across 19 markets around the world in 21st century
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4 min read | Updated on February 20, 2025, 18:56 IST
SUMMARY
In many countries, the difference between returns from gold and equity in the 21st century is more than 5%. For instance, in Japan, gold returns in local currency are 6.7% more than equity (4.6%). Similarly, gold has outperformed equity in the UK and France by over 6.3% and 5.2%, respectively. When it comes to emerging markets, gold returns outperformed equity in terms of local currencies in Turkey and Brazil by 8.2% and 6.4%, respectively.
Only India witnessed equity market outperformance over gold in local currency in the 21st century. | Image source: Shutterstock
The surging price of gold amid stock market corrections has sparked wide-ranging debates on social media.
While there has never been any doubt about gold's place in one's portfolio as a hedge against inflation and uncertainties, data on its performance in the 21st century compared to equity markets shows that the precious metal may help create and preserve wealth over the long term in any country.
What data says
In many countries, the difference between returns from gold and equity in the 21st century is more than 5%. For instance, in Japan, Gold returns in local currency is 6.7% more than equity (4.6%).
Similarly, gold has outperformed equity in the UK and France by over 6.3% and 5.2% respectively. When it comes to emerging markets, gold returns outperformed equity in terms of local currencies in Turkey and Brazil by 8.2% and 6.4% respectively.
| Developed markets (returns in 21st century)* | Equity market returns (in local currency) | Gold returns (in local currency) | Gold’s excess returns over equity market |
|---|---|---|---|
| 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% |
*Data since 31-12-1999, source: Netra report (February 2025) by DSP Asset Managers; data as on January 2025
Out of 19 markets listed in the report, only India witnessed equity market outperformance over gold in local currency in the 21st century.
However, the difference between the two in India was just 0.9%. Equity market return in India in the 21st century was 13.4% while gold returns in local currency was 12.5%.
| Emerging markets (returns in 21st century)* | Equity market returns (in local currency) | Gold returns (in local currency) | Gold’s excess returns over equity market |
|---|---|---|---|
| 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% |
*Data since 31-12-1999, source: Netra report (February 2025) by DSP Asset Managers; data as on January 2025
| Country | Index | Gold returns in 20 Years | Number of stocks outperforming Gold | % of stocks outperforming 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% |
**Percentage of stocks outperforming gold, excluding adjustments for mergers and acquisitions. Source: Netra report (February 2025) by DSP Asset Managers; data as on January 2025
In the last 20 years, around 193 stocks of the broader NIFTY 500 index outperformed gold's 13% returns. In the US, UK, and Japan, only 54, 1, and 3 stocks outperformed gold in the last two decades. In China also, only 79 stocks outperformed the yellow metal.
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